RESUMO
Despite worldwide commitments to reduce fossil fuel consumption in favour of alternative energies, several countries still rely on carbon-intensive sources to meet their energy demands. The previous studies show inconsistent results on the association between financial development and CO2 emissions. As a result, the impact of financial development, human capital, economic growth and energy efficiency on CO2 emission is evaluated here. Empirical research on a panel of 13 South and East Asian (SEA) nations between 1995 and 2021 using the CS-ARDL. Estimates from the empirical analysis considering energy efficiency, human capital, economic growth and overall energy use yield different findings. Financial development has a negative effect on CO2 emission, while economic growth positively impacts CO2 emission. The data also show that improving human capital and energy efficiency has a positive, though statistically insignificant, impact on CO2 emission. According to the causes and effects analysis, CO2 emission will be influenced by policies that aim to improve financial development, human capital, and energy efficiency, but not vice versa. Policy considerations that can be implemented in light of these findings and sustainable development goals can be accomplished by promoting financial resources and human capital.
