Financial Efficiency and Its Impact on Renewable Energy Demand and CO 2 Emissions: Do Eco-Innovations Matter for Highly Polluted Asian Economies?

Muhammad Hafeez, Saif Ur Rehman, C. M. Nadeem Faisal, Juan Yang (), Sana Ullah, Md. Abdul Kaium and Muhammad Yousaf Malik
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Muhammad Hafeez: Institute of Business Management Sciences, University of Agriculture, Faisalabad 38040, Pakistan
Saif Ur Rehman: Faculty of Management, Canadian University Dubai, Dubai 415053, United Arab Emirates
C. M. Nadeem Faisal: Department of Computer Science, National Textile University, Faisalabad 37610, Pakistan
Juan Yang: Chinese Academy of Sciences and Technology for Development, Beijing 100038, China
Sana Ullah: School of Economics, Quaid-i-Azam University, Islamabad 15320, Pakistan
Md. Abdul Kaium: Department of Marketing, University of Barishal, Barishal 8254, Bangladesh
Muhammad Yousaf Malik: Institute of Business Management Sciences, University of Agriculture, Faisalabad 38040, Pakistan

Sustainability, 2022, vol. 14, issue 17, 1-12

Abstract: The analysis aims to examine the impact of eco-innovation and financial efficiency on CO 2 emissions and renewable energy consumption in highly polluted Asian economies, including China, India, Russia, and Japan. For empirical analysis, we have applied the ARDL pooled mean group (ARDL-PMG) model. The long-run estimated coefficient of environmental innovations is positively significant in both renewable energy models and negatively significant in the CO 2 emissions model. These results imply that environmental innovations help facilitate renewable energy consumption and reduce CO 2 emissions. On the other side, the estimates of financial development are insignificant in both renewable energy and CO 2 emissions models. However, the estimates of financial institution efficiency and financial markets are positively significant in both renewable energy and CO 2 emissions models, implying that financial institutions and market efficiency increase renewable energy consumption and decrease CO 2 emissions.

Keywords: financial efficiency; eco-innovation; CO 2 emissions; renewable energy consumption (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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