The role of financial deepening and green technology on carbon emissions: Evidence from major OECD economies

Sudharshan Reddy Paramati, Di Mo and Ruixian Huang

Finance Research Letters, 2021, vol. 41, issue C

Abstract: This paper investigates the role of financial deepening, green technology, foreign direct investment (FDI), per capita income and trade openness on carbon emissions in a panel of 25 OECD economies. The paper uses robust panel econometric techniques and yearly data, 1991–2016. The empirical evidences from augmented mean group and group-mean estimators reveal that green technology, FDI inflows and trade openness reduce carbon emissions, while financial deepening and per capita income positively contribute. Overall, it implies that green technology, along with FDI and trade, is the major factor that helps to reduce the carbon emissions in the OECD economies.

Keywords: Financial deepening; green technology; FDI; per capita income; OECD economies (search for similar items in EconPapers)
JEL-codes: D53 G20 O32 O33 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (51)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:41:y:2021:i:c:s1544612320316081

DOI: 10.1016/j.frl.2020.101794

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