Please use this identifier to cite or link to this item: http://hdl.handle.net/10995/117859
Title: Can Financial Institutional Deepening and Renewable Energy Consumption Lower CO2 Emissions in G-10 Countries: Fresh Evidence from Advanced Methodologies
Authors: Mehmood, U.
Tariq, S.
Haq, Z. U.
Agyekum, E. B.
Kamel, S.
Elnaggar, M.
Nawaz, H.
Hameed, A.
Ali, S.
Issue Date: 2022
Publisher: MDPI
Citation: Can Financial Institutional Deepening and Renewable Energy Consumption Lower CO2 Emissions in G-10 Countries: Fresh Evidence from Advanced Methodologies / U. Mehmood, S. Tariq, Z. U. Haq et al. // International Journal of Environmental Research and Public Health. — 2022. — Vol. 19. — Iss. 9. — 5544.
Abstract: To tackle the challenges associated with global warming and climate change, several countries set their targets to lower carbon emissions in accordance with COP21 (Paris Conference). Even though studies highlighted the different aspects that contribute to environmental degradation, there still exists the scarcity of adequate research that emphasizes the environmental implications of financial institutional deepening, renewable energy consumption (REC), and technology innova-tions. Therefore, this study investigated the significance of financial institutional deepening, REC, gross domestic product (GDP), imports, exports, and technology innovations to achieve sustaina-bility in G-10 countries, namely The Netherlands, Germany, France, Switzerland, United Kingdom, Sweden, Japan, Belgium, Canada, and Italy from 1990 to 2020. The results obtained from cross-sec-tionally augmented autoregressive distributed lag (CS-ARDL) and the dynamic common correlated effects mean group (DCCEMG) models reveal that financial institutional deepening and imports positively impact CO2 emissions (CO2e) both in the long and short run. A 1% increase in financial institutional deepening and import will increase CO2e by 0.5403% and 0.2942% in the short run and 0.2980% and 0.1479% in the long run levels, respectively. Contrary to this, REC, GDP, exports, and technology innovations improve environmental quality in these countries. The Dumitrescu & Hur-lin causality test shows bidirectional causality between imports and CO2e, GDP and CO2e, exports and CO2e, and financial institutional deepening and CO2e, compared to unidirectional causality from technology innovations to CO2e and from REC to CO2e. Apart from this, the outcomes suggest that policymakers in G-10 countries have to consider their financial markets and firms to revise their current environmental policies. © 2022 by the authors. Licensee MDPI, Basel, Switzerland.
Keywords: CO2 EMISSIONS
FINANCIAL INSTITUTIONAL DEEPENING
G-10 COUNTRIES
GDP
RENEWABLE ENERGY CONSUMPTION
ALTERNATIVE ENERGY
CARBON EMISSION
EMISSION CONTROL
ENERGY USE
ENVIRONMENTAL QUALITY
FINANCIAL SERVICES
GROSS DOMESTIC PRODUCT
INNOVATION
ARTICLE
BELGIUM
CANADA
CARBON DIOXIDE EMISSION
CONTROLLED STUDY
ENVIRONMENTAL POLICY
FINANCIAL MARKET
FRANCE
GERMANY
GROSS NATIONAL PRODUCT
HUMAN
ITALY
JAPAN
NETHERLANDS
RENEWABLE ENERGY
SWEDEN
SWITZERLAND
UNITED KINGDOM
ECONOMIC DEVELOPMENT
GROSS NATIONAL PRODUCT
RENEWABLE ENERGY
CARBON
CARBON DIOXIDE
CARBON
CARBON DIOXIDE
ECONOMIC DEVELOPMENT
GROSS DOMESTIC PRODUCT
RENEWABLE ENERGY
URI: http://hdl.handle.net/10995/117859
Access: info:eu-repo/semantics/openAccess
SCOPUS ID: 85129184960
ISSN: 16617827
DOI: 10.3390/ijerph19095544
metadata.dc.description.sponsorship: Funding: This research work does not get any funding from any organization.
Appears in Collections:Научные публикации, проиндексированные в SCOPUS и WoS CC

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