Financial development and environmental degradation: Does political regime matter?

By Samuel Olorunfemi Adams, E. Klobodu. Journal of Cleaner Production, 2018

179 citations recorded by the source corpus.

Abstract The paper examines the determinants of environmental degradation for 26 African countries over the period 1985–2011. Using a wide range of econometric techniques (Chow test, cross-country regressions and the Generalized Method of Moments (GMM)), we find that environmental degradation (measured by CO2 emissions) in 2000–2011 experience a structural change which is far more intense than 1985–1999. Furthermore, cross-country regressions show that economic growth and urbanization are significant determinants of environmental degradation. Financial development, however, is a significant determinant of environmental degradation after accounting for political regime. Finally, the GMM estimator confirms a robust positive link between environmental degradation and economic growth. The policy implications of our findings are discussed in the concluding section.

Subfields: Economics and Econometrics, Information Systems, Pollution

View Paper: https://www.semanticscholar.org/paper/a34dfc827ddfdc31848b441667e4590ead80ec0c

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In Economics and Econometrics

1. Muhammad Qayyum
2. A. Jahanger
3. Minhaj Ali
4. Yuyuan Yu
5. Shijie Li
6. Mir Muhammad Nizamani

In Pollution

1. Muhammad Qayyum
2. A. Jahanger
3. Minhaj Ali
4. Yuyuan Yu
5. Shijie Li
6. Mir Muhammad Nizamani

Citations in the corpus

• Nexus between Financial Development, Renewable Energy Consumption, Technological Innovations and CO2 Emissions: The Case of India (2021, background): “on the ecosystem [16,17] has become a hot topic; the present study, therefore, adds financial development into energy-growth-environmental links and looks at its importance in India for sustained growth.”
• Energy consumption, economic policy uncertainty and carbon emissions; causality evidence from resource rich economies (2020, unknown): “LCO2it = α0 + β1LRGDPit + β2LRGDPSQit + β3LENCit + β4LGPRit + β5LEPUit + β6LENCEPUit + β7LENCGPRit + εit (2)”