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https://doi.org/10.1080/1331677X.2022.2137825

Expansion of financial system and productionbased carbon emissions: evidence from highincome countries

Bo Zhou
Yayun Zhang


Puni tekst: engleski pdf 1.744 Kb

preuzimanja: 122

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Sažetak

The recent environmental and energy economics is more influential
towards sustainability of the environment. Unlike the existing
literature covering extensively consumption-based carbon emissions
factors, this research tends to identify the factors influencing
production-based carbon emissions in the G7 economies from
1989 to 2020. The study utilised various panel econometric
approaches to find the presence of cross-section dependence, stationarity
of variables, and the validation of long-run cointegration
association between the variables. This study uses a non-parametric
long-run estimator (method of moment quantile regression) to
explore the association between these variables at four (Q0.25,
Q0.50, Q0.75, Q0.90) quantiles. The estimated results revealed that
economic growth is a significant positive factor of productionbased
carbon emissions, whereas the influence of imports is positive
but insignificant across the quantiles. On the other hand, this
study found the negative and significant influence of exports and
financial expansion on the production-based carbon emissions
and helps to achieve environmental sustainability in the region.
The non-parametric (bootstrap quantile regression) and parametric
(robust regression) robustness tests also validate the earlier
estimator’s empirical findings. Based on the results obtained, this
study recommends increased investment in environmentally
friendly energy resources, technologies, and energy efficiency,
increased exports, and strengthening financial institutions

Ključne riječi

Financial expansion; production-based carbon emission; economic growth; imports; exports; nonparametric techniques

Hrčak ID:

306701

URI

https://hrcak.srce.hr/306701

Datum izdavanja:

30.4.2023.

Posjeta: 349 *