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Do financial development, financial stability and renewable energy disturb carbon emissions? Evidence from asia–pacific economic cooperation economics.
- Source :
- Environmental Science & Pollution Research; Jul2023, Vol. 30 Issue 35, p83198-83213, 16p
- Publication Year :
- 2023
-
Abstract
- The present paper investigates the influence of renewable energy consumption (REC), economic growth (GDP), financial development index (FDI), z-score (ZS) and control of corruption (CC) on carbon dioxide (CO2) emissions, for eighteen different APEC economies over the period 2000–2019 using the Pooled Mean Group-Autoregressive Distributed Lags (PMG-ARDL) approach and Granger causality tests. The outcomes of the empirical study confirm that the variables are cointegration using Pedroni tests. The long-run estimates revealed that economic growth and renewable energy contribute to the huge of carbon emissions, while financial development, ZS and CC lead to decrease carbon emissions. Granger causality shows that, in the long-run, there is bidirectional causality between CO2 emissions, economic growth, and financial development. In the short-run and for basic variables, Granger shows a unidirectional causality from CO2 emissions and economic growth to REC and; unidirectional causality from financial development, ZC and CC to CO2 emissions. A comprehensive approach is needed in APEC countries to effectively reduce CO2 emissions and promote sustainable development, including encouraging green financial products, reinforcing financial regulations, transitioning to a low-carbon economy, enhancing renewable energy usage, and improving governance and institutional quality, while considering the distinctive characteristics of each country. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 09441344
- Volume :
- 30
- Issue :
- 35
- Database :
- Complementary Index
- Journal :
- Environmental Science & Pollution Research
- Publication Type :
- Academic Journal
- Accession number :
- 165110841
- Full Text :
- https://doi.org/10.1007/s11356-023-28418-8