Achieving carbon neutrality in post COP26 in BRICS, MINT, and G7 economies: The role of financial development and governance indicators
Электронный научный архив УРФУ
Информация об архиве | Просмотр оригинала| Поле | Значение | |
| Заглавие |
Achieving carbon neutrality in post COP26 in BRICS, MINT, and G7 economies: The role of financial development and governance indicators
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| Автор |
Ofori, E. K.
Onifade, S. T. Ali, E. B. Alola, A. A. Zhang, J. |
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| Тематика |
CARBON NEUTRALITY
ENVIRONMENTAL SUSTAINABILITY FINANCIAL DEVELOPMENT GOVERNANCE MINT-BRICS-G7 CARBON CLIMATE CHANGE ECONOMICS ENVIRONMENTAL REGULATIONS POLLUTION CONTROL SUSTAINABLE DEVELOPMENT CARBON EMISSIONS CARBON NEUTRALITIES CONDITIONAL INFLUENCES ENVIRONMENTAL POLLUTIONS ENVIRONMENTAL SUSTAINABILITY FINANCIAL DEVELOPMENT GOOD GOVERNANCES GOVERNANCE MINT-BRICS-G7 POLLUTION LEVEL INVESTMENTS |
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| Описание |
Pledges and commitments from governments of wealthy nations were made at the COP26 Glasgow summit, thereby rejuvenating hope among nations to confront the climate change challenge. Thus, the study examines the complementarity of financial development and carbon emissions, while accounting for the conditional influence of good governance under three disaggregated indicators – economic, institutional, and political governance for the BRICS, MINT, and the G7 economies. First, the study reveals that financial development depending on the adopted indicator has mixed effects on environmental pollution levels. Specifically, financial development triggers the highest pollution effect via domestic credit to the private sector compared to foreign direct investments, while financial development index reduces environmental pollution. Secondly, economic governance promotes environmental quality by reducing environmental pollution through quality regulation. Third, institutional governance through weaker rule of laws induces pollution, while the control of corruption antagonizes pollution levels. Furthermore, only the voice of accountability supports the pollution-mitigating effect of political governance. On a bloc-to-bloc comparative analysis, governance effectiveness promotes environmental pollution in all the three economic blocs albeit at different magnitudes while the voice of accountability exerts a significant desirable impact on pollution only in the G7 countries. Lastly, renewable energy and trade liberalization exerts a negative and positive influence on environmental degradation respectively. © 2023 The Authors
International Monetary Fund, IMF In the contemporary world, a polluted environment is often seen as a major barrier to sustainable economic growth. Several studies have noted that environmental quality improvement is still necessary to achieve sustainable development (Zafar et al., 2020; Bekun et al., 2022; Gyamfi et al., 2022; Onifade and Alola, 2022). Additionally, the works of Usman et al. (2020) and Zafeiriou et al. (2022) support the idea that financial development (FD) and institutional mandates might be a catalyst for environmental protection. However, this remains a research gap since there is a lack of solid empirical data. Additionally, to best of the our knowledge, no research has been conducted to contrast this occurrence within the context of the three economic blocs (i.e. BRICS, MINT & G7).Following the motivation of the study outlined above, three(3) strands of research gaps are identified: First, despite the expanding body of knowledge, it is still unclear whether financial development has a good or adverse impact on environmental deterioration. Second, this study broadens the scope of FD by expanding the proxies of financial development. Importantly, the current analysis uses a relatively new FD measure developed by the International Monetary Fund (IMF) in addition to two proxies from the world bank to provide a wholesome outlook on FD. Additionally, among the numerous innovative approaches, it is crucial to consider the role of the government in various policy alternatives when developing an environmental plan for mitigating carbon emissions. In closing this gap, this study would moderate the impact of good governance in mitigating the adverse effect or otherwise of financial development on the environment. In deepening the moderation effect, the study uses subset categories of governance metrics that would better inform policy engagement as espoused by (Omri and Ben Mabrouk, 2020). The last shortcoming in the literature is often the scope of the investigation which is either country-specific or solely on economic blocs. However, this work bridges this gap through a comparative analysis of the three major economic blocs mentioned earlier. Thus, this work opens up an important step toward addressing the ongoing financing disparity between mitigation and adaptation initiatives arising from the discussion at cop26 (Mountford et al., 2021). Moreover, this study demonstrates the effectiveness of governance in mitigating the harmful influence of financial boom on ecosystems.We obtained data from the World Development Indicators (WDI), the International Monetary Fund (IMF), and the World Governance Indicators (WGI). The starting period is chosen based on the data available for governance indicators. The definition and origin of the variables are listed in Table 1. Given that a balanced panal data is employed for the study, missing values especially for the governance indicators were computed by using linear interpolation. This computation approach essentially helps in estimating possible intermediate observations between available data values through a straight line between two available adjacent values (Meijering, 2002; Cox, 2005).Prior to the estimation of the main results of the study, a series of pre-estimation procedures were performed to ascertain the suitability of the dataset for the model estimation. To begin with, we performed the Kaiser-Meyer-Olkin (KMO) test and Bartlett's sphericity test (BS) to investigate the importance of the study variables as proposed by the determining factors of CO2 emissions (Table 2). The results presented in Table 2 reveal that the estimated outcomes are within acceptable ranges. Fig. 1 presents the scree plot for the principal component analysis (PCA) and it supports that the independent variables are relevant in determining the dependent variables of the study. |
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| Дата |
2024-04-05T16:23:10Z
2024-04-05T16:23:10Z 2023 |
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| Тип |
Article
Journal article (info:eu-repo/semantics/article) |info:eu-repo/semantics/publishedVersion |
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| Идентификатор |
Ofori, EK, Onifade, ST, Ali, EB, Alola, AA & Zhang, J 2023, 'Achieving carbon neutrality in post COP26 in BRICS, MINT, and G7 economies: The role of financial development and governance indicators', Journal of Cleaner Production, Том. 387, 135853. https://doi.org/10.1016/j.jclepro.2023.135853
Ofori, E. K., Onifade, S. T., Ali, E. B., Alola, A. A., & Zhang, J. (2023). Achieving carbon neutrality in post COP26 in BRICS, MINT, and G7 economies: The role of financial development and governance indicators. Journal of Cleaner Production, 387, [135853]. https://doi.org/10.1016/j.jclepro.2023.135853 0959-6526 Final All Open Access, Hybrid Gold, Green https://www.scopus.com/inward/record.uri?eid=2-s2.0-85145774911&doi=10.1016%2fj.jclepro.2023.135853&partnerID=40&md5=1bc38315b63c0713d22c512d5470f553 https://doi.org/10.1016/j.jclepro.2023.135853 http://elar.urfu.ru/handle/10995/130515 10.1016/j.jclepro.2023.135853 85145774911 000917268000001 |
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| Язык |
en
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| Права |
Open access (info:eu-repo/semantics/openAccess)
cc-by https://creativecommons.org/licenses/by/4.0/ |
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| Формат |
application/pdf
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| Издатель |
Elsevier Ltd
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| Источник |
Journal of Cleaner Production
Journal of Cleaner Production |
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