Financial development and environmental sustainability in West Africa: evidence from heterogeneous and cross-sectionally correlated models

Cross-sectional analysis of socioeconomic drivers of PM2.5 pollution in emerging SAARC economies

Within the intricate interplay of socio-economic, natural and anthropogenic factors, haze pollution stands as a stark emblem of environmental degradation, particularly in the South Asian Association for Regional Cooperation (SAARC) region. Despite significant efforts to mitigate greenhouse gas emissions, several SAARC nations consistently rank among the world's most polluted. Addressing this critical research gap, this study employs robust econometric methodologies to elucidate the dynamics of haze pollution across SAARC countries from 1998 to 2020. These methodologies include the Pooled Mean Group (PMG) and Augmented Mean Group (AMG) estimator, Panel two-stage least squares (TSLS), Feasible Generalized Least Squares (FGLS) and Dumitrescu-Hurlin (D-H) causality test. The analysis reveals a statistically significant cointegrating relationship between PM2.5 and economic indicators, with economic development and consumption expenditure exhibiting positive associations and rainfall demonstrating a mitigating effect. Furthermore, a bidirectional causality is established between temperature and economic growth, both influencing PM2.5 concentrations. These findings emphasize the crucial role of evidence-based policy strategies in curbing air pollution. Based on these insights, recommendations focus on prioritizing green economic paradigms, intensifying forest conservation efforts, fostering the adoption of eco-friendly energy technologies in manufacturing and proactively implementing climate-sensitive policies. By embracing these recommendations, SAARC nations can formulate comprehensive and sustainable approaches to combat air pollution, paving the way for a healthier atmospheric environment for their citizens.

Financial development and environmental quality in developed countries: a systematic literature review

Studying the effect of financial development on environmental quality has become imperative in the modern world due to the climate change challenges. Hence, this systematic literature review provides a comprehensive overview of the existing body of knowledge on the nexus of financial development and environmental quality in developed countries. Three databases: Web of Science, Scopus, and Google Scholar were used to search the relevant articles in this domain. Finally, 20 journal articles qualified for the systematic literature review based on the pre-defined article inclusion criteria as per the Preferred Reporting Items for Systematic Reviews and Meta-analyses (PRISMA) framework. We found that a range of econometric approaches were used in all examined papers, employing a diverse range of proxy variables to model the relationship between financial development and environmental quality. Overall, the findings of the examined papers imply mixed evidence of this nexus in developed countries. We highlight the knowledge gap in this research domain examining the financial development and environmental quality link from different proxies.

Does globalization mitigate environmental degradation in selected emerging economies? assessment of the role of financial development, economic growth, renewable energy consumption and urbanization

While the acceleration of globalization in newly developing (emerging) economies contributes positively to economic developments on the one hand, it is a research topic that can have an impact on environmental pollution on the other hand. Therefore, this study analyzes the impact of globalization on environmental pollution for 14 emerging economies in the 1991-2018 period by including economic growth, financial development, renewable energy consumption, and urbanization in the ecological footprint model. In addition to the AMG forecaster, Driscoll-Kraay, PCSE, and FGLS estimation techniques are used for long-term forecasting. Causal linkages among variables are analyzed by the Dumitrescu-Hurlin panel bootstrap causality test. The findings show that the series are cointegrated, that is, a long-term relationship between the variables. In the long term, globalization and renewable energy consumption reduce environmental pollution, while economic growth and financial development play a role in encouraging environmental pollution. Causality analysis enumerates a causality from economic growth and financial development to environmental pollution, as well as a two-way causality between globalization and environmental pollution and renewable energy consumption and environmental pollution. Empirical findings can offer important implications for policies that will reduce environmental pollution in these countries.

Drivers of food security in West Africa: Insight from heterogeneous panel data analysis on income-level classification

This paper investigates the factors driving food security in West African countries. Specifically, it examines the impact of natural resource rents, institutional quality, and climate change on food security while controlling for industrialization and economic growth. Our research is motivated by the urgent need for swift policy action to address the escalating food crisis in the region and prevent any potential catastrophic consequences. Second-generation econometric techniques are utilized for accurate and reliable outcomes based on yearly datasets from West African countries from 2000 to 2020, and the countries are sub-grouped into low-income and lower-middle-income. The findings unveil the panel as heterogeneous and cross-sectionally based, and all the study variables are first differenced stationary and co-integrated in the long run. Hence, the Augmented Mean Group and Common Correlated Effects Mean Group estimators are utilized to explore the relationships between the variables, and the findings reveal that natural resource rents, climate change, and industrialization are detrimental to food security across the sub-groups. However, the outcomes affirm institutional quality and economic growth as beneficial drivers of food security across the sub-groups. Therefore, this study recommends that authorities of both low-income and lower-middle-income countries make substantial investments in sustainable natural resource utilization and also work towards enhancing the efficiency and effectiveness of their institutions, as well as investing in environmental research to explore climate change mitigation possibilities that could enhance food security in West Africa.

Green financial development efficiency: a catalyst for driving China's green transformation agenda towards sustainable development

The pursuit of a green transformation agenda in China is an important aspect of achieving sustainable development. The role played by green financial development efficiency (GFDE) in this pursuit cannot be overlooked. This paper explored the impact of GFDE on China's green transformation agenda and its contributions toward sustainable development. The study adopts a systematic approach to examine the relationship between GFDE and green transformation, utilizing relevant data and literature. The study aligns with previous research in the field that highlights the importance of green finance in reducing carbon emissions and promoting sustainable development in China. It also adds to the existing literature by specifically focusing on the role of green financial development efficiency in the pursuit of a green transformation agenda in China. The study found a significant improvement in GFDE over the period of 2010 to 2020 in promoting green transformation in China. Both systems generalized method of moments and fixed-effect models revealed that trade openness, foreign investments, technological innovation, and government budget positively influenced GFDE while energy consumption and economic policy uncertainty had a significant adverse effect on GFDE. The results of this study inform policymakers and stakeholders of the importance of green finance in promoting sustainable development. The study intimated that the financial sector should provide support for green technologies and businesses by offering range of green products such as green bonds, funds, and loans.

The role of economic production, energy consumption, and trade openness in urbanization-environment nexus: a heterogeneous analysis on developing economies along the Belt and Road route

In today's world, where urbanization is at its pinnacle, has created a significant economic gap between rural and urban populations in developing economies and substantially influenced environmental degradation. This study investigates the relationship between urbanization and environmental degradation via carbon emissions among developing countries along the Belt and Road route from 1990 to 2019 while using economic production, energy consumption, and trade openness as control variables. The study engages current econometric methodologies to uncover accurate and reliable findings, and the outcomes reveal that the panel under investigation is cross-sectionally dependent and heterogeneous. Therefore, the AMG, CCEMG, and DCCEMG estimators are employed to examine the effect connection between the variables. The outcomes unveil that urbanization, economic production, and energy consumption escalate environmental degradation, but trade openness is confirmed as a trivial determinant of environmental degradation. Furthermore, the causal connections between the variables disclose bi-directional causalities between urbanization and environmental degradation and between energy consumption and environmental degradation. Nevertheless, uni-directional causalities are affirmed, spanning from economic production to environmental degradation and from trade openness to environmental degradation. Finally, policy implications are discussed.

Have international remittance inflows degraded environmental quality? A carbon emission mitigation analysis for Ghana

Despite the considerable contributions of remittances to households and economic advancements, their environmental implications have received little attention in empirical research. This study was, therefore, conducted to help fill that gap, using Ghana as an evidence. In achieving the above goal, robust econometric methods that control for endogeneity, heteroscedasticity and serial correlation among others, were engaged for the analysis. From the results, the studied variables were first-differenced stationary and cointegrated in the long run. The elasticities of the predictors were explored via the FMOLS, DOLS and CCR estimators, and from the results, remittance inflows worsened the ecological quality in Ghana through high CO2 emissions. Also, population growth and energy utilization were not friendly to the country's environment; however, technological innovations improved environmental quality in the nation via low CO2 effusions. The VECM was employed to examine the path of causalities amidst the series, and from the results, there were bidirectional causalities between remittance inflows and CO2 emissions and between population growth and CO2 emanations. Also, a causation from energy utilization to CO2 effluents was discovered; however, there was no causality between technological innovations and CO2 exudates in the country. Based on the findings, it was recommended among others that, authorities should enact regulations to control the activities of polluting industries that are being financed by remittances. Also, households and individuals should minimize their use of remittances to finance carbon-intensive items, like automobiles and air-conditioners among others, that add to environmental pollution in the country.

China's 2060 carbon-neutrality agenda: the nexus between energy consumption and environmental quality

This study examined the nexus between energy consumption and environmental quality in light of China's 2060 carbon-neutrality agenda utilizing annual frequency data from 1971 to 2018. In order to obtain valid and reliable outcomes, more robust econometric techniques were employed for the analysis. From the results, all the variables were first differenced stationary and cointegrated in the long-run. The elastic effects of the predictors on the explained variable were explored through the ARDL, FMOLS, and the DOLS techniques, and from the discoveries, energy utilization worsened environmental quality in the country via more CO2 emissions. Also, industrialization and urbanization deteriorated the country's environmental quality; however, technological innovations improved ecological quality in the nation. On the causal connections between the variables, a unidirectional causality from energy consumption to CO2 effluents was discovered. Also, feedback causalities between industrialization and CO2 secretions, and between urbanization and CO2 exudates were disclosed. However, there was no causality between technological innovations and CO2 emanations. Based on the findings, the study recommended among others that, since energy consumption pollutes the environment, the country should transition to the utilization of renewable energies. Also, the government should allocate more resources to the renewable energy sector. This will help increase the portion of clean energy in the country's total energy mix. Furthermore, research and development that are linked to the utilization of green energies should be supported by the government. Data constraints were the main limitation of this exploration. Therefore, in the future, if more data become available, similar explorations could be conducted to check the robustness of our study's outcomes.

Financial inclusion and environmental sustainability in Ghana: application of the dynamic ARDL estimator

Numerous explorations have been conducted on the determinants of Ghana's environmental quality. However, to the best of my knowledge, there has been no research on the connection between financial inclusion and environmental sustainability in the country. This study was therefore conducted to help fill that gap. In attaining the aforestated goal, econometric techniques that yield valid and reliable outcomes were engaged. From the results, all the series were first differenced stationary and cointegrated in the long run. The DARDL estimator with the support of the conventional ARDL estimator was adopted to explore the marginal effects of the predictors on the explained variable, and from the results, financial inclusion worsened environmental sustainability in the nation via high carbon emissions. Also, foreign direct investments degraded the country's ecological quality validating the pollution haven hypothesis. Finally, trade openness, population growth, and energy consumption were detrimental to environmental sustainability in the nation. On the causal directions amidst the series, unidirectional causalities from financial inclusion and trade openness to carbon effusions were disclosed. Also, feedback causalities between foreign direct investments and carbon emissions; between population growth and carbon effluents; and between energy consumption and carbon exudates were unfolded. The study recommended among others that, financial establishments should not fund the production of carbon-intensive goods, but those that are friendly to the environment. The government can also help to improve environmental sustainability by establishing regulations to mandate financial entities to engage in eco-friendly activities.

Exploring the Dynamic Nexus Among Economic Growth, Industrialization, Medical Technology, and Healthcare Expenditure: A PMG-ARDL Panel Data Analysis on Income-Level Classification Along West African Economies

This article explored the dynamic nexus among economic growth, industrialization, medical technology, and healthcare expenditure in West Africa while using urbanization and aged population as control variables. West African countries were sub-sectioned into low-income (LI) and lower-middle-income (LMI) countries. Panel data extracted from the World Development Indicators (WDI) from 2000 to 2019 were used for the study. More modern econometric techniques that are vigorous to cross-sectional dependence and slope heterogeneity were employed in the analytical process in order to provide accurate and trustworthy results. The homogeneity test and cross-sectional dependency test confirmed the studied panels to be heterogeneous and cross-sectionally dependent, respectively. Moreover, the CADF and CIPS unit root tests showed that the variables were not integrated in the same order. This, thus, leads to the employment of the PMG-ARDL estimation approach, which unveiled economic growth and urbanization as trivial determinants of healthcare expenditure in the LI and LMI panels. However, the results affirmed industrialization as a major determinant of healthcare expenditure in the LI and LMI panels. Additionally, medical technology was confirmed to decrease healthcare expenditure in the LMI panel, whereas in the LI panel, an insignificant impact was witnessed. Also, the aged population was found to intensify healthcare expenditure in both the LI and LMI panels. Lastly, on the causal connection between the series, the outcome revealed a mixture of causal paths among the variables in all the panels. Policy recommendations have therefore been proposed based on the study's findings.

Green investments, financial development, and environmental quality in Ghana: evidence from the novel dynamic ARDL simulations approach

Numerous studies have examined the influence of macroeconomic factors on environmental quality in Ghana. However, to the best of our knowledge, there has been no study on the connection between green investments, financial development, and environmental quality in the context of this Sub-Saharan African country. This study was therefore conducted to help fill this gap using annual frequency time series data ranging from 1970 to 2018. In attaining the objectives of this study, robust econometric techniques were employed. From the results, all the variables were first differenced stationary and cointegrated in the long run. The dynamic ARDL simulations technique with the support of the ARDL estimator was employed to examine the elastic effects of the predictors on the response variable, and from the discoveries, green investments improved environmental quality in Ghana both in the long and the short run via carbon dioxide mitigations. However, in both the long and the short run, financial development and energy utilization had a detrimental influence on environmental quality due to their positive influence on carbon dioxide emissions. Moreover, the N-shaped association between national income and environmental pollution was validated for Ghana. On the causal directions amidst the variables, there was no causality between green investments and environmental degradation was evidenced; however, a bidirectional causality between financial development and environmental pollution was also discovered. Also, unidirectional causalities running from national income and energy consumption to environmental degradation were discovered. Based on the findings, the study recommend that investments in green sources should be intensified to help improve environmental quality in Ghana. Furthermore, improving developments in the financial sector is a vital means through which the country could attain its sustainable development goals.

Does energy consumption, economic growth, urbanization, and population growth influence carbon emissions in the BRICS? Evidence from panel models robust to cross-sectional dependence and slope heterogeneity

This paper examined the nexus between economic growth, energy consumption, urbanization, population growth, and carbon emissions in the BRICS economies from 1990 to 2019. In order to yield valid and reliable outcomes, modern econometric techniques that are vigorous to cross-sectional dependence and slope heterogeneity were employed. From the findings, the studied panel was heterogeneous and cross-sectionally dependent. Also, all the series were first differenced stationary and co-integrated in the long run. The Augmented Mean Group (AMG) and the Common Correlated Effects Mean Group (CCEMG) estimators were employed to estimate the elastic effects of the predictors on the explained variable, and from the output of both estimators, energy consumption worsened environmental quality via high carbon emissions. Also, the AMG estimator affirmed economic growth to be a significantly positive determinant of carbon emissions. However, both estimators confirmed urbanization and population growth as trivial predictors of the emissivities of carbon. On the causal connections amidst the series, there was bidirectional causality between economic growth and carbon emissions, between energy consumption and economic growth, between economic growth and population growth, between energy consumption and urbanization, and between economic growth and urbanization. Lastly, a causation from urbanization to carbon emissions was unfolded. Policy implications are further discussed.