Dynamic linkages between globalization, financial development and carbon emissions: Evidence from Asia Pacific Economic Cooperation countries
By S. Zaidi, Muhammad Wasif Zafar, Muhammad Shahbaz, Fujun Hou. Journal of Cleaner Production, 2019
732 citations recorded by the source corpus.
Abstract This study determines the dynamic linkages between globalization, financial development and carbon emissions in Asia Pacific Economic Cooperation (APEC) countries in the presence of energy intensity and economic growth under the framework of Environment Kuznets Curve (EKC). This study employs the panel data from 1990 to 2016, Westerlund cointegration technique to find long-run cointegration, and Continuously Updated Bias-Corrected (CUP-BC) and Continuously Updated Fully Modified (CUP-FM) methods to check the long-run elasticities between the variables. Empirical results indicate that globalization and financial development significantly reduce carbon emissions, but economic growth and energy intensity increase them. These results support the EKC hypothesis for APEC countries. The Dumitrescu and Hurlin causality analysis shows that globalization Granger causes CO2 emissions. Globalization also causes financial development and energy intensity. A feedback effect exists between financial development and CO2 emissions. Furthermore, financial development causes economic growth but similar is not true from opposite-side in Granger sense. Finally, this study presents important policy implications with respect to APEC countries.
Subfields: Economics and Econometrics, Environmental Engineering, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/02ca05a85195fb781512cc204cca02c38c00c7f7
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
- A. Jahanger
- Muhammad Atif Khan
- Boqiong Yang
- Xiaoxin Ma
- Nazim Hussain
- C. E. W. Yameogo
- Wu Xiaoman
- Syed Shah Alam
In Environmental Engineering
- Xiaoxin Ma
- Nazim Hussain
- A. Jahanger
- Boqiong Yang
- Chunxia Jiang
- Muhammad Atif Khan
- Abdulai Abdul Majeed
In Renewable Energy, Sustainability and the Environment
- A. Jahanger
- Muhammad Atif Khan
- Boqiong Yang
- Xiaoxin Ma
- Nazim Hussain
- C. E. W. Yameogo
- Wu Xiaoman
- Chunxia Jiang
Citations in the corpus
- Green Finance Development in Bangladesh: The Role of Private Commercial Banks (PCBs) (2021, background): “Despite the strong externalities and environmental advantages of green projects compared to conventional ones, the lack of professional experience and high costs at early stages pose major threats to the development of green projects [13,14].”
- The Impact of Financial Development on Carbon Emissions: A Global Perspective (2019, methodology): “[19] examine the dynamic relationship of financial development and carbon emissions in the EKC framework with continuously updated bias-corrected (CUP-BC) and continuously updated fully modified (CUP-FM) methods and the panel data of 17 Asia Pacific Economic Cooperation (APEC) countries from 1990–20”
- Does the inflow of remittances and energy consumption increase CO2 emissions in the era of globalization? A global perspective (2020, background): “…such as Lu (2018); Cetin et al. (2018); Bekhet et al. (2017) found that financial development can increase CO2 emissions, but some other scholars Zaidi et al. (2019); Saidi and Mbarek (2017); Omri et al. (2015) (Nasreen et al. 2017) have investigated that financial development could decrease…”