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In this study, we investigated the influence of overall financial development and its components on energy consumption using the panel data of 120 countries and the generalized method of moments (GMM). By dividing the sample into developed and developing countries, we further examined the national differences of the impact of financial development on energy consumption. The empirical results indicate that the overall financial development significantly positively impacts energy consumption from a worldwide perspective, and its two components (financial institution and the financial market) have the same effect. The analysis of national differences indicates that the financial development also positively impacts energy consumption in developing countries but with no obvious effect in developed countries. The results also suggest that financial development cannot be used to restrain the increase in energy consumption from the global perspective, and policymakers in developing countries must balance the relationship between the development of the financial sector and energy consumption.
Xiaoxin Ma; Qiang Fu. The Influence of Financial Development on Energy Consumption: Worldwide Evidence. International Journal of Environmental Research and Public Health 2020, 17, 1428 .
AMA StyleXiaoxin Ma, Qiang Fu. The Influence of Financial Development on Energy Consumption: Worldwide Evidence. International Journal of Environmental Research and Public Health. 2020; 17 (4):1428.
Chicago/Turabian StyleXiaoxin Ma; Qiang Fu. 2020. "The Influence of Financial Development on Energy Consumption: Worldwide Evidence." International Journal of Environmental Research and Public Health 17, no. 4: 1428.
Financial development has been deemed to be an important factor influencing carbon emissions; however, the specific effect generated by financial development is still disputed. In this study, we examined the relationship between financial development and carbon emissions based on a system generalized method of moments and the data of 155 countries, and we further analyzed the national differences by dividing the sample countries into two sub-groups: developed countries, and emerging market and developing countries. The empirical results indicated that from a global perspective, financial development could significantly increase carbon emissions, and the analysis of the emerging market and developing countries reached the same conclusion; however, the results indicated that for developed countries, the effect of financial development on carbon emissions is insignificant. A series of robustness checks were conducted and confirmed that our empirical results were reliable. We suggest that policymakers in emerging market and developing countries should carefully balance financial development and environmental protection, as financial development will promote carbon emissions before countries reach a relatively high development level.
Chun Jiang; Xiaoxin Ma. The Impact of Financial Development on Carbon Emissions: A Global Perspective. Sustainability 2019, 11, 5241 .
AMA StyleChun Jiang, Xiaoxin Ma. The Impact of Financial Development on Carbon Emissions: A Global Perspective. Sustainability. 2019; 11 (19):5241.
Chicago/Turabian StyleChun Jiang; Xiaoxin Ma. 2019. "The Impact of Financial Development on Carbon Emissions: A Global Perspective." Sustainability 11, no. 19: 5241.