Citation
Suraya Mahmood, . and Jakada Aminu Hassan, . and Nazatul Faizah Haron, . and Danmaraya Ismail Aliyu, . Revisiting the environmental Kuznet curve in Africa:the interactive role of financial development in sustainable environment. pp. 1-20. ISSN 2672-7226
Abstract
The aim of this study is to revisit the validity of EKC hypothesis in six leading African countries with interaction effect of financial development and economic growth on the quality of environment over a period of 1970 to 2019. The research used the updated version of Driscoll and Kraay model by Hoechle which resolved the consequences of heteroscedasticity and cross-sectional dependency. The empirical results of the study reveal that the EKC hypothesis is supported in these leading African economies. Carbon emissions increase due to foreign direct investment (FDI) and energy consumption. Financial development improves the environmental quality in these leading African economies. The interactive role of financial development and economic growth increases CO‚‚ emissions thereby degrading the quality of environment. The study recommends that environmental policies that minimize emissions should be enforced for the purpose of making the environment cleaner FDI should be environmentally friendly and relevant incentives are required to redirect private credits towards green projects and renewable energy development.
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Abstract
The aim of this study is to revisit the validity of EKC hypothesis in six leading African countries with interaction effect of financial development and economic growth on the quality of environment over a period of 1970 to 2019. The research used the updated version of Driscoll and Kraay model by Hoechle which resolved the consequences of heteroscedasticity and cross-sectional dependency. The empirical results of the study reveal that the EKC hypothesis is supported in these leading African economies. Carbon emissions increase due to foreign direct investment (FDI) and energy consumption. Financial development improves the environmental quality in these leading African economies. The interactive role of financial development and economic growth increases CO‚‚ emissions thereby degrading the quality of environment. The study recommends that environmental policies that minimize emissions should be enforced for the purpose of making the environment cleaner FDI should be environmentally friendly and relevant incentives are required to redirect private credits towards green projects and renewable energy development.
Additional Metadata
Item Type: | Article |
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AGROVOC Term: | Financial cooperatives |
AGROVOC Term: | Environment |
AGROVOC Term: | Sustainable economic development |
AGROVOC Term: | Economic growth |
AGROVOC Term: | atmospheric emission |
AGROVOC Term: | Energy consumption |
AGROVOC Term: | Quality of life |
AGROVOC Term: | Renewable energy |
Depositing User: | Mr. AFANDI ABDUL MALEK |
Last Modified: | 24 Apr 2025 00:55 |
URI: | http://webagris.upm.edu.my/id/eprint/10732 |
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