The governance factor: Mitigating carbon emissions through FDI and financial development in emerging Asian economies.

This study investigates the influence of foreign direct investment (FDI), financial development (FD), and governance on carbon emissions in 15 emerging Asian economies (EAEs) from 2000 to 2021. It aims to assess how successful these nations have been in upholding ecological sustainability while promoting themselves as alternative manufacturing destinations to China and fostering domestic manufacturing through significant financial development. It creates a composite governance quality (GQ) measure and three subdimensions-EcoGov, InstGov, and PolGov-to assess its precise role in influencing the FDI-carbon dioxide (CO2) and FD-CO2 nexuses. Using fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) panel cointegration techniques, this study yielded findings revealing that FDI and FD significantly enhance carbon emissions. The overall GQ significantly moderates the FD-CO2 nexus but fails to moderate FDI's detrimental environmental influence. More specifically, EcoGov significantly moderates FDI's and FD's influence on carbon emissions, whereas InstGov significantly enhances their influence on emissions. In contrast, PolGov is only found to moderate FD's impact on environmental quality since the Government frequently endorses liberal environmental regulations to facilitate FDI-led growth. The findings from this study are robust and carry distinct policy ramifications.

Financial inclusion, competition and financial stability: New evidence from developing economies.

This study utilizes cross-country data from 2002 to 2019 from 60 selected developing countries to explore the impact of competition and financial inclusion on financial stability. Employing the system GMM estimator, compelling evidence is revealed, highlighting a number of key findings. Firstly, it is observed that financial inclusion has a weakening effect on financial stability within developing countries. Conversely, competition among these nations demonstrates a significant capacity to bolster financial stability. Additionally, the study underscores the pivotal role of financial development, identifying it as a primary driver that enables financial inclusion to positively influence financial stability within developing nations. Furthermore, the introduction of the square term of financial inclusion yields noteworthy insights, revealing a nonlinear relationship. Specifically, the findings suggest that strategic investments in the financial inclusion of developing countries have the potential to enhance financial stability up to a certain threshold. Therefore, for emerging economies seeking to fortify their financial stability, prioritizing efforts to augment financial inclusion is imperative. Over the long term, such endeavors have the potential to yield tangible improvements in financial stability. In conclusion, the research offers valuable policy implications. These include recommendations aimed at fostering greater financial inclusion within developing economies as a means of bolstering overall financial stability. By heeding these suggestions and implementing targeted policies, policymakers can work towards cultivating a more resilient and robust financial landscape within their respective nations.

Unlocking time-quantile impact of energy vulnerability, financial development, and political globalization on environmental sustainability in Turkey: Evidence from different pollution indicators.

Increasing energy vulnerability can cause environmental pollution by increasing fossil fuel consumption. If it leads to cost-cutting-oriented industry growth, financial development can lead to environmental regulations being ignored, compromising environmental quality. Political globalization and economic growth can increase short-term environmental pressures, straining long-term ecological balance and causing habitat loss and pollution. This study investigates the impact of energy vulnerability, financial development, and political globalization on environmental sustainability in Turkey for the 2000-2019 period using with wavelet quantile-based techniques. According to results, while the negative effect of energy vulnerability on environmental quality is lower in the short term, the size of the effect increases in the medium and long term. In addition, at low quantiles of environmental quality, the negative effect of financial development is low in the short and long term, while the effect becomes evident in the long term. Moreover, the effects of political globalization on environmental quality are positive in all quantiles. Additionally, the harmful effects of economic growth are more evident at lower quantiles of environmental quality. Turkey should increase its clean energy investments by using its geographically advantageous location. Policymakers should also prioritize environmental regulations and promote sustainable practices in industries. Incentives for cleaner production technologies and environmentally friendly initiatives can help steer the financial sector towards more responsible and environmentally friendly practices. Additionally, the study suggests that increasing institutional capacity and aligning national policies with international agreements can accelerate the positive effects of political globalization.

Role of natural resources, renewable energy sources, eco-innovation and carbon taxes in carbon neutrality: Evidence from G7 economies.

Global warming has created problems for human life, and it has been increasing for a few years. All the developing and developed countries are establishing policies to attain zero carbon status. This study extends the ongoing debate on carbon emissions. It examines the effect of natural resources and RE (Biofuel and other renewable sources) on greenhouse gas (CO2 emission and PM2.5) emissions while using data over 22 years (1999-2021) from G7 countries. In addition, this study has investigated the effect of carbon taxes, financial development, and environmental policies on carbon neutrality. The cross-sectional-ARDL, the Common correlated effect means group (CCEMG), and the Augmented mean group (AMG) cutting-edge model have been employed. Quantile regression has been employed for robustness. The study results demonstrate that biofuel and other renewable energy (RE) sources, carbon taxes, environmental policy, and eco-innovation decrease greenhouse gas emissions (CO2 emissions). Meanwhile, financial development, and natural resource dependence positively impact carbon neutrality. The robustness result also verifies the findings from CS-ARDL, AMG, and CCEMG methods. The empirical findings are used to infer policy implications for G7 economies.

Spillover impacts of financial development and globalization on environmental quality in ASEAN countries.

In the globalization era, the economic policy of a specific country might be influenced by the development of neighboring countries. Thus, this study aims to probe the direct and spillover effects of financial development, economic growth, and globalization on environmental sustainability in ASEAN countries during the period of 1992-2021. By applying three spatial regression models, the results are summarized: (1) There are positive spillover effects of financial development in neighboring countries on ecological footprint in a particular country; (2) Economic growth has a positive impact on ecological deficits in both the host country and neighboring countries in the short-run; (3) The expansion of globalization in neighboring countries has a negative spillover effect on the ecological footprint in a particular country and vice versa. Based on these findings, the study recommends that when a country formulates its economic policies, it is necessary to calculate the impact of that policy on neighboring countries and vice versa. Encouraging economic growth and expanding the money supply ought to go hand in hand with fostering greater integration. This integration is essential to counterbalance the potential adverse effects of these macroeconomic variables on environmental quality and ecological balance.

How does climate change risk affect energy poverty? International evidence.

Based on cross-country data from 2002 to 2019, we explore the impact of climate change risk (CCR) on energy poverty (EP), and the moderating role in the CCR-EP nexus is also discussed. The empirical results suggest that CCR can exacerbate EP, especially for rural areas. Moderating effect analysis shows that financial development, technological innovation, and adaptation readiness can modify the negative impacts of CCR on EP to some extent. Moreover, the impact of CCR on EP is heterogeneous, demonstrating that CCR is more likely to exacerbate EP in countries with low economic development, low economic freedom, high carbon intensity, and the Africa region. Our findings emphasize the challenge of balancing EP alleviation with climate change response and provide the policy guidance to promote coordinated development of CCR management and energy supply security.

Comparative study of environmental and monetary policies in an R&D-based growth model.

ESG investment and financing is a response to global warming and toxic carbon emissions. This is because market and financial development is expected to contribute to de-carbonisation in relevant firms. However, the opposite might occur with carbon-intensive industries. An option is to introduce a carbon tax or an emissions cap but this varies across countries. The impact of environmental policies and the development of financial markets are thus relevant factors to analyse in the debate regarding the best pathways to reduce pollution. This impact is not conclusive in extant studies. In order to meet this gap and to devise effective solutions to this problem, the mechanisms behind them need to be empirically clarified. To achieve this research objective, this study analyses the impact of these factors on welfare through pollution and growth. It examines the respective regulatory regimes of environmental taxes and emission quotas, using an R&D-based growth model with a monetary component. This is to identify the relationship between pollution emissions and financial markets. Results reveal that increasing environmental taxes and reducing nominal interest rates does in fact lead to pollution reduction and economic growth, as well as an increase in the quantity of money and credit through deflation. Reducing emission allowances has a similar effect. However, under emission quotas, it is found that a reduction in the nominal interest rate affects neither pollution emissions nor economic growth, although it does affect the quantity of money and credit. This is because the Fisher effect disappears when the emission quota caps output. A U-shaped relationship between emission allowances and the amount of credit then arises. Under an emissions trading system, the relationship between pollution emissions and financial development can be a win-win relationship or a trade-off relationship. This depends on the emission quota and nominal interest rate. These results suggest that, in addition to environmental policy instruments, financial market development can contribute to decarbonisation if there is the right environmental financial policy. A mix of environmental and financial policies is thus important in linking financial market development to decarbonisation.

Analyzing the effect of public private partnership mode on sewage treatment in China.

The public-private partnership (PPP) mode is one of the main ways to promote environmental governance through marketization in the sewage treatment industry. This mode is crucial for environmental protection and livelihood improvement. In order to investigate the impact of PPP mode on sewage treatment, the influence of financial development and the government-business relationship on the effectiveness of sewage treatment under PPP mode, and the role of government in this context, an empirical model is established. To achieve this, data from 284 prefecture-level and above cities in China from 2009 to 2017 has been selected as research samples. The total amount of regional sewage treatment PPP projects is used as the proxy variable for participation in the PPP mode. The findings reveal that the PPP mode of sewage treatment effectively reduces the intensity and amount of sewage discharge. Moreover, the results indicate that a higher level of financial development and a more perfect financial system are associated with better sewage treatment effects under the PPP mode. Similarly, a more harmonious government-business relationship and a higher health index of this relationship correspond to improved sewage treatment effects under the PPP mode. The government should actively enhance government transparency, formulate appropriate corporate taxes and fees, clarify the responsibilities and obligations of the government and enterprises, and optimize the business environment in order to optimize the sewage treatment effect of the PPP mode.

Remittance inflows and financial development in Sub-Saharan African countries: Does governance matter?

Background: The surge in remittances in most sub-Saharan African countries motivated this study to establish whether remittance inflows enhance financial development and whether governance plays any significant mediating role in the nexus between financial development and remittance inflows. Purpose: The study examines the impact of remittance inflows on bank-based financial development in 26 sub-Saharan African (SSA) countries using three proxies of bank-based financial development. The study also examines whether government regulatory quality and effectiveness modulate the impact of remittance on bank-based financial development. Method: The generalised method of moments (GMM) estimation technique is used to examine this linkage. Results: The results show that when financial development is proxied by liquid liabilities and bank deposits, remittance inflow is found to have an unconditional positive impact on bank-based financial development, while governance is found to reinforce the positive relationship between remittance and financial development. However, when financial development is proxied by deposit money bank assets, remittance is found to have no profound effect on bank-based financial development, but it was found to interact with government effectiveness to yield a positive influence on financial development. Conclusion: Overall, remittance inflows were found to have an overwhelming positive impact on the banking sector development. It was also found that good governance generally tends to reinforce the positive impact of remittances on banking sector development. Novelty: This study adds value to the extant literature by providing answers to the role that governance plays in enhancing the impact of remittances on financial development in sub-Saharan African countries.

Linking clean energy consumption, globalization, and financial development to the ecological footprint in a developing country: Insights from the novel dynamic ARDL simulation techniques.

Developing countries have been facing economic difficulties for over three and a half decades due to numerous factors, including fossil fuel consumption and dwindling biocapacity. It is necessary to pinpoint the factors that may be culpable for poor environmental quality leading to a rising ecological footprint (EFP). This study explores the effect of clean energy, financial development (FDV), and globalization on the EFP in a developing country using the novel dynamic ARDL simulation techniques and the bootstrap causality test. The findings suggest that green energy has no meaningful impact on the EFP. Globalization and FDV significantly reduce the EFP by 0.25% and 0.08%, respectively. Besides, the findings confirm the existence of the EKC hypothesis. Furthermore, the causality results affirm a unidirectional causality from globalization and FDV to EFP, while economic growth drives globalization. Also, a one-way causality flows from globalization to FDV, just as FDV Granger causes green energy. In line with the findings, the study recommends that public policies focus on funding environmental-friendly technologies and green innovations. The funding must be on recently developed energy-saving technologies that can ensure complementarity between increased economic growth and environmental deterioration.

Shaping a greener future: The role of geopolitical risk, renewable energy and financial development on environmental sustainability using the LCC hypothesis.

The recent progress report of Sustainable Development Goals (SDG) 2023 highlighted the extreme reactions of environmental degradation. This report also shows that the current efforts for achieving environmental sustainability (SDG 13) are inadequate and a comprehensive policy agenda is needed. However, the present literature has highlighted several determinants of environmental degradation but the influence of geopolitical risk on environmental quality (EQ) is relatively ignored. To fill this research gap and propose a inclusive policy structure for achieving the sustainable development goals. This study is the earliest attempt that delve into the effects o of geopolitical risk (GPR), financial development (FD), and renewable energy consumption (REC) on load capacity factor (LCF) under the framework of load capacity curve (LCC) hypothesis for selected Asian countries during 1990-2020. In this regard, we use several preliminary sensitivity tests to check the features and reliability of the dataset. Similarly, we use panel quantile regression for investigating long-run relationships. The factual results affirm the existence of the LCC hypothesis in selected Asian countries. Our findings also show that geopolitical risk reduces environmental quality whereas financial development and REC increase environmental quality. Drawing from the empirical findings, this study suggests a holistic policy approach for achieving the targets of SDG 13 (climate change).

Determining the green technology innovation accelator and natural resources towards decarbonization for the EU countries: evidence from MMQR.

Gearing up for green technology innovation (GTI) and natural resources has become even more important in the transition to a zero-emission life, a green economy, and sustainable development goals. This attempt has become a situation that needs to be overpowered much sooner by the European countries, which have encountered challenges in many ways, especially regarding natural resources, energy supply, and the climate crisis. In this vein, the current study follows the novel, robust Method of Moment Quantile-Regression (MM-QR), which successfully yields heterogeneous information structure across quantiles, to examine the determinants of GTI for 15 EU countries over the period of 2003-2018. MM-QR estimation results indicate that the determinants of green technology innovation are heterogeneous across the EU countries. While green growth (GG) has an adverse impact on GTI in middle- and high-GTI countries, the effect of ecological footprint on GTI is positive for countries in the highest-GTI countries. The positive effects of financial development (FD) on GTI are revealed for all countries. Remarkably, environmental taxes have an adverse and positive influence on GTI in the lowest and highest quantile countries, respectively. Finally, renewable energy and greenfield FDI have no effect on GTI. Governments can promote GTI by providing financial resources, in the most immaculate way, to firms that engage in green technology projects, as well as by encouraging these through environmental taxes.

Openness policies and financial development in Ghana: An ARDL approach.

PURPOSE: This study investigated the relationship between openness policies (trade and finance) and the degree of financial development in Ghana. DESIGN/METHODOLOGY/APPROACH: The data for this study were extracted from the World Bank's World Development Indicators from 1960 to 2020. The data consists of annual time series data for Ghana. This study employs the ARDL bounds testing approach for cointegration to estimate the short- and long-run effects of openness policies on financial development in Ghana. In addition, a Markov Switching Model is used as a robustness check to estimate the effect of openness policies and financial development and to handle issues of structural breaks in the dataset. FINDINGS: The study finds that openness policies have a substantial impact on financial development in Ghana and supports the McKinnon-Saw hypothesis. Specifically, financial and trade openness have positive effects on financial development in the long run. However, in the short run, trade openness is the only significant determinant of financial development. The results from the Markov model also indicate that the effect of openness policies on financial development is positive in high and low regimes of financial development, even though foreign investment does not affect financial development in less volatile environments. ORIGINALITY/VALUE: This study examines the relationship between openness policies (trade and finance) and the degree of financial development in Ghana. RESEARCH IMPLICATIONS: This study suggests that government policies should focus on enhancing trade agreements to increase trade volumes and promote financial development in the long run. Additionally, reducing restrictions on capital movement across borders could encourage capital inflows and competition among financial institutions, leading to greater efficiency and development of the financial sector. Moreover, policies that promote financial openness can promote long-term financial development in the long run. Therefore, policymakers should work towards liberalizing capital accounts and promoting foreign investment. However, policymakers must be cautious about the potential short-term effects of such policies and work towards mitigating any negative impacts.

Geopolitical risk, financial development, and renewable energy consumption: empirical evidence from selected industrial economies.

The rapid rise in climate and ecological challenges have allowed policymakers to introduce stringent environmental policies. In addition, financial limitations may pose challenges for countries looking to green energy investments as energy transition is associated with geopolitical risks that could create uncertainty and dissuade green energy investments. The current study uses PTR and PSTR as econometric strategy to investigate how geopolitical risks and financial development indicators influence energy transition in selected industrial economies. Our findings indicate a non-linear DCPB-RE relationship with a threshold equal to 39.361 in PTR model and 35.605 and 122.35 in PSTR model. Additionally, when the threshold was estimated above, financial development indicators and geopolitical risk positively impacts renewable energy. This confirms that these economies operate within a geopolitical context, with the objective of investing more in clean energy. We report novel policy suggestion to encourage policymakers promoting energy transition and advance the sustainable financing development and ecological sustainability.

Revisiting the environmental Kuznets curve: assessing the impact of climate policy uncertainty in the Belt and Road Initiative.

Climate change repercussions such as temperature shifts and more severe weather occurrences are felt globally. It contributes to larger-scale challenges, such as climate change and biodiversity loss in food production. As a result, the purpose of this research is to develop strategies to grow the economy without harming the environment. Therefore, we revisit the environmental Kuznets curve (EKC) hypothesis, considering the impact of climate policy uncertainty along with other control variables. We investigated yearly panel data from 47 Belt and Road Initiative (BRI) nations from 1998 to 2021. Pooled regression, fixed effect, and the generalized method of moment (GMM) findings all confirmed the presence of inverted U-shaped EKC in BRI counties. Findings from this paper provide policymakers with actionable ideas, outlining a framework for bringing trade and climate agendas into harmony in BRI countries. The best way to promote economic growth and reduce carbon dioxide emissions is to push for trade and climate policies to be coordinated. Moreover, improving institutional quality is essential for strong environmental governance, as it facilitates the adoption of environmentally friendly industrialization techniques and the efficient administration of climate policy uncertainties.

Does ICT influence carbon emissions in the context of universal connectivity: a global perspective?

The Connect 2030 initiative, launched by the International Telecommunication Union, is in alignment with the Sustainable Development Goals (SDGs) of the United Nations Agenda 2030. Its main objective is to achieve universal connectivity, a goal that is closely related to environmental issues. This topic currently receives attention from researchers and policymakers. Given these considerations, our study investigates the impact of information and communication technologies on carbon dioxide emissions for a panel of 84 countries spanning the years 2009 to 2020. Using principal component analysis, we construct an ICT index that encompasses international bandwidth, reflecting the universal connectivity, and participation in international data exchanges. The empirical analysis applies the pooled mean group-panel autoregressive distributive lag (PMG-ARDL) approach to estimate both the long-run and short-run coefficients of CO2 emissions' determinants. Our findings show that ICT and renewable energy mitigate CO2 emissions, unlike financial development, GDP, and non-renewable energy, which contribute significantly to emissions for the full sample. These outcomes suggest that promoting ICTs in general and international bandwidth in particular, as part of universal connectivity, improves the quality of the global environment.

Go for Economic Transformation and Development in China: Financial Development, Higher Education, and Green Technology Evolution.

Technology innovation is the key driving force in achieving economic transformation and development. Financial development and the expansion of higher education can promote technological progress primarily by easing financing constraints and improving the level of human capital. This study examines the impact of financial development and higher education expansion on green technology innovation. It conducts an empirical analysis by constructing a linear panel model and a nonlinear threshold model. The present study sample is based on the urban panel data of China from 2003-2019. (1) Financial development can significantly promote the expansion of higher education. (2) The expansion of higher education can improve energy and environment-based technological progress. (3) Financial development can both directly and indirectly promote green technology evolution by expanding higher education. The joint financial development and higher education expansion can significantly empower green technology innovation. (4) In the process of promoting green technology innovation, financial development has a non-linear influence on it, with higher education as the threshold. The effect of financial development on green technology innovation varies according to the degree of higher education. Based on these findings, we put forward policy proposals for green technology innovation to promote economic transformation and development in China.

Studying financial development with low-carbon architecture development and green technological innovation: sustaining SDG-9.

In order to accomplish Sustainable Growth Goal 9, this research analyzes in detail how green technological innovation, low-carbon architectural improvement, and more significant financial growth all work together to reach the goal. This research meticulously integrates secondary data from reputable sources to examine the relationship between economic growth, technological innovation in the built environment, and environmental sustainability from 1994 to 2019. For economic insights, the World Bank's World Development Indicators is a go-to resource, while Yale University's Environmental Performance Index (EPI) is a go-to for environmental metrics. Our research is based on this synthesis of multi-dimensional data, which enables an in-depth investigation of the interplay between financial development, sustainable architecture, and technical progress toward SDG-9. This research employs quantitative and qualitative methodologies to shed light on the intricate interaction between these elements, making it useful for policymakers, scholars, and stakeholders dedicated to directing sustainable development paths.

Role of technology management for carbon neutrality in Gulf economies: the role of social globalization and financial development.

This study is founded on the United Nations' Sustainable Development Goals (SDGs) for 2030, particularly SDGs 8, 11, 12, and 13, among others. Investigating the impact of nonrenewable energy, social globalization, financial development, and ICT on CO2 emissions in the Gulf nations, data from 1992 to 2019 was employed using advanced panel methodologies. Both linear and nonlinear autoregressive distributed lag techniques, along with a panel causality approach, were utilized for a comprehensive analysis. These extensive investigations offer robust insights into the ecological sustainability dynamics within the Gulf nations. The empirical findings highlight that positive (negative) shifts in social globalization, economic growth, ICT, and nonrenewable energy correlate with an increase (decrease) in CO2 emissions, while positive (negative) shifts in financial development contribute to a decrease (increase) in CO2 emissions. These results emphasize the need for a policy framework aligned with the SDGs, advocating an inclusive policy framework tailored for the Gulf nations, aiming to drive progress towards achieving SDGs 7, 8, 9, 13, and 16.

Effects of digitalization on energy security risk: do financial development and environmental trade matter?

Trade in environmental goods and financial development may harness factors such as green investment, technological development, and renewable energy production, which are crucial in reducing energy security risks by diversifying energy sources. However, not many empirics have shed light on the impact of digitalization, environmental trade, and financial development on energy security risks in top energy-consuming countries. To fill this vacuum, this study intends to investigate the influence of digitalization, environmental trade, and financial development on energy security risk in top energy-consuming countries from 2003 to 2021. The study employs the 2SLS and GMM estimates for empirical estimation of top energy-consuming developed and developing economies. The results show that ICT negatively affects energy security risks in developed economies. The findings of the analysis also suggest that environmental trade and financial development cause energy security risks to be reduced in both developed and developing economies. Likewise, the energy security risks in both developed and developing nations are mitigated by ICT, GDP, carbon emissions, and renewable energy production. In contrast, the energy security risks are escalated by the rise in natural resource rents. In order to fully capitalize on the potential advantages of these elements and eventually ensure a more sustainable and secure energy future, governments, businesses, and financial institutions must work together.