Modeling the dynamic linkage between financial development, energy innovation, and environmental quality: Does globalization matter?

Baloch M. A., Ozturk I., Bekun F. V., Khan D.

Business Strategy and the Environment, cilt.30, sa.1, ss.176-184, 2021 (SSCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 30 Sayı: 1
  • Basım Tarihi: 2021
  • Doi Numarası: 10.1002/bse.2615
  • Dergi Adı: Business Strategy and the Environment
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, ABI/INFORM, Aerospace Database, Business Source Elite, Business Source Premier, Communication Abstracts, Environment Index, Geobase, Greenfile, INSPEC, Metadex, Pollution Abstracts, Psycinfo, Public Affairs Index, Civil Engineering Abstracts
  • Sayfa Sayıları: ss.176-184
  • Anahtar Kelimeler: energy innovation, financial development, globalization, greenhouse gases, OECD countries
  • İstanbul Gelişim Üniversitesi Adresli: Evet

Özet

© 2020 ERP Environment and John Wiley & Sons LtdIn the modern era of the wave of globalization, financial development is leading toward a higher rate of economic expansion and promoting energy innovation around the globe. Nevertheless, environmental impact of financial development has preoccupied government officials to circumvent adverse impact on environmental quality. Thus, this paper examines the nexus between financial development, economic growth, energy innovation, and environmental pollution for the period of 1990–2017 for the panel of Organization for Economic Cooperation and Development (OECD) countries. To obtain robust and unbiased results, this study utilizes Pooled Mean Group Autoregressive Distributed Lag (PMG/ARDL) estimator that counters the issue of heterogeneity and cross-sectional dependence. Empirical evidence suggests that financial development promotes energy innovation and improves environmental quality. Globalization also has a long-term relationship with energy innovation and reduces greenhouse gas (GHG) emissions. Moreover, findings validate the environmental Kuznets curve for OECD countries in the significance of financial development, globalization, and energy innovation.