Environmental Economics
Mahdieh Rezagholizadeh; Yousef Eisazadeh roshan; Parisa Shahbedini
Abstract
Introduction: Financial development is a process through which the quantity, quality, and efficiency of financial intermediation services are improved. The more the financial system develops, the more financial resources are provided for the development of renewable energy technologies, and as a result, ...
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Introduction: Financial development is a process through which the quantity, quality, and efficiency of financial intermediation services are improved. The more the financial system develops, the more financial resources are provided for the development of renewable energy technologies, and as a result, it can have positive environmental impacts by changing the energy supply mix and reducing pollutant emissions. Financial development can affect the level of CO2 emissions and environmental quality through its impact on economic growth, capital attraction, industrial activities, energy efficiency, technological innovation, investment costs in projects, increased use of renewable energy sources, financial provision, and allocation of credit for renewable energy projects.The importance of utilizing renewable energy sources and reducing carbon dioxide (CO2) emissions on one hand, and the need for financial resources and large-scale investments for renewable energy projects on the other, highlights the role and significance of financial development in the level of environmental pollution through CO2 emissions. Therefore, considering the role and importance of financial development in the value of CO2 emissions as a criterion for environmental pollution and the significance of examining this relationship at the provincial level, this study investigates the relationship between financial development and CO2 emissions in the provinces of Iran and at the end, will test the environmental Kuznets hypothesis.Materials and Methods: This study uses the Dynamic Ordinary Least Squares (DOLS) method to investigate the relationship between financial development and CO2 emissions in the provinces of Iran during the period of 2009-2021 and answers the question of whether financial development in the provinces of Iran is environmentally friendly (Green) or not. In order to investigate the difference in the relationship between financial development and carbon dioxide emissions at the level of the country's provinces, all provinces are divided into two categories of developed and less developed provinces based on the report of the Economic Statistics Research Group of Iran Statistics Center (2022).In this study, in order to investigate the impact of financial development and other independent variables on carbon dioxide emissions, a Dynamic Ordinary Least Squares (DOLS) method is used to analyze the coefficients. For this purpose, the following model is considered:CO2it=αi+β1FDit+β2GDPit+β3EIit+β4URBit+ɛit (1)Where:CO2it: Carbon dioxide emissions in each provinceFDit: Composite index of financial developmentGDPit: Real per capita gross domestic product of the provincesEIit: Energy intensityURBit: Urbanization rateAlso, in the following, in order to test the Kuznets hypothesis in the studied provinces, model (1) is specified as model (2):CO2it=αi+β1FDit+β2FD2it+β3GDPit+β4EIit+β5URBit (2)Where:FD2it: The square of financial development. Results: The results of the estimation of models indicate that in both groups of provinces in the country, financial development is positively significantly associated with carbon dioxide emissions. Additionally, energy intensity, gross domestic product, and urbanization rate are also found to be positively and significantly related to carbon dioxide emissions. The results suggest that financial development may initially lead to an increase in carbon dioxide emissions, but with further development, this effect is reversed, resulting in a reduction in carbon dioxide emissions. This finding confirms the existence of the Environmental Kuznets Curve theory in the studied provinces during the period under investigation.Discussion: The estimation results indicate that financial development in the provinces of Iran will lead to an increase in carbon dioxide emissions. Furthermore, further investigations confirm the validity of the Kuznets relationship in the provinces of Iran, meaning that in the initial stages of development, the impact of financial development on carbon dioxide emissions will be positive, but over time this relationship becomes negative, leading to a reduction in carbon dioxide emissions.
Omidali Adeli
Abstract
Although economic growth and development in different countries has increased economic prosperity, but also environmental pollution threatens human life. The purpose of this study is to investigate the factors affecting air pollution by emphasizing the emission of carbon dioxide in among the countries ...
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Although economic growth and development in different countries has increased economic prosperity, but also environmental pollution threatens human life. The purpose of this study is to investigate the factors affecting air pollution by emphasizing the emission of carbon dioxide in among the countries of the ECO region from 2000 to 2018 with an emphasis on financial development. To investigate the effect of financial development on environmental pollution, the Panel Data econometric method has been used and the model coefficients have been estimated with Eviews 10 software. The dependent variable of the research is the amount of carbon dioxide emissions in terms of tons per year and the independent variable is the combined index of financial development. Two control variables including GDP and energy consumption are also included in the model. In the long run, the effect of financial development on carbon dioxide emissions in the ECO countries is positive and significant. Also, the effects of GDP and energy consumption on carbon dioxide emissions are positive and significant. The coefficient of determination of the model is equal to 98%, which indicates the high descriptive power of the model. Although increasing the level of economic activity increases welfare in different societies, but given that increasing the level of economic activity, especially industrial activity, increases the emission of carbon dioxide and biodegradation. یEnvironment in ECO member countries, economic policy makers of these countries should work together to implement the necessary policies and strategies to control and reduce emissions of carbon dioxide and other environmental pollutants.
Samaneh Bagheri
Abstract
Financial development is one of the goals of countries. This study investigates for the first time the impact of financial development on environmental pollution and energy consumption with the method of generalized torque, dynamic least squares and adjusted minimum squares in OPEC member countries in ...
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Financial development is one of the goals of countries. This study investigates for the first time the impact of financial development on environmental pollution and energy consumption with the method of generalized torque, dynamic least squares and adjusted minimum squares in OPEC member countries in the period 1992-1992. Iran has a comparative advantage in energy consumption, so research in this area is necessary. According to the results of financial development, it has had a positive and significant effect on environmental pollution in these countries in the form of three models, and indicates that financial development in these countries has not led to the creation of environmentally friendly technologies. Energy consumption, GDP and urban growth have a positive and significant effect on environmental pollution. The Kuznets curve in these countries is confirmed by an inverted U-shape. Financial development with dynamic least squares and adjusted ordinary squares has a positive and significant effect on energy consumption.