Vol. 9 No. 1 (2021): Business & Management Studies: An International Journal
Articles

Investigation of the environmental impact of growth, energy consumption and financial development in developed and emerging countries: the case of Sweden and Pakistan

İnci Merve Altan
Asisst. Prof. Dr., Bandırma Onyedi Eylül University

Published 2021-03-25

Keywords

  • Financial Development, Environmental Kuznets Curve Hypothesis, CO2 Emission
  • Finansal Kalkınma, Çevresel Kuznets Hipotezi, CO2 Emisyonu

How to Cite

Altan, İnci M. (2021). Investigation of the environmental impact of growth, energy consumption and financial development in developed and emerging countries: the case of Sweden and Pakistan. Business & Management Studies: An International Journal, 9(1), 18-31. https://doi.org/10.15295/bmij.v9i1.1633

Abstract

With industrialization, countries have closely followed technological innovations in order to increase production and income. At this time, economic growth and financial development have been focused on ignoring the environment's damage. Nowadays, with the apparent damage to the environment, solutions have been investigated to sustain economic growth without harming the environment. In this way, the dynamic causal relationships between carbon emissions, energy consumption, income and foreign trade for Sweden representing developed countries and Pakistan representing emerging countries were examined with the ARDL Boundary Test in 1971-2020. As a result of the analysis, it was found in the long term that the CO2 emission in Sweden is related to the commercial energy use and the CO2 emission of the previous period and the commercial energy use of the previous period. It was found that it is only associated with commercial energy use in the short term. In the long term, the CO2 emission in Pakistan is related to the commercial energy use and GDP and the previous period's CO2 emission. It is related to commercial energy use and GDP in the short term. It has been found that commercial energy consumption is the most crucial variable in explaining environmental pollution regardless of the development levels of countries and their carbon risks.

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