Financial development and macroeconomic sustainability: modeling based on a modified environmental Kuznets curve

Adel Ben Youssef, Sabri Boubaker and Anis Omri ()
Additional contact information
Sabri Boubaker: EM Normandie Business School

Climatic Change, 2020, vol. 163, issue 2, No 8, 767-785

Abstract: Abstract Sustainability has become an important and widely applied concept in the environmental economics literature. Despite the numerous studies employing an environmental Kuznets curve (EKC), this model has been critiqued for its incompleteness. This article builds a modified EKC model to examine the contribution of financial development for achieving sustainable development in the case of 14 selected Middle East and North Africa (MENA) countries. Using the Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG) estimators, our empirical results show that the EKC hypothesis is valid for per capita CO2 emissions and ecological footprint. The results provide evidence also of the presence of linear and non-linear relationships between financial development and non-sustainability and indicate that financial development is likely to have a small long-term impact on sustainable development. This suggests that current efforts aimed at protecting the environment and achieving sustainability will be ineffective given the extent of the problem.

Keywords: Financial development; Sustainable development; Modified EKC model (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://link.springer.com/10.1007/s10584-020-02914-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Financial development and macroeconomic sustainability: modeling based on a modified environmental Kuznets curve (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:climat:v:163:y:2020:i:2:d:10.1007_s10584-020-02914-z

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10584

DOI: 10.1007/s10584-020-02914-z

Access Statistics for this article

Climatic Change is currently edited by M. Oppenheimer and G. Yohe

More articles in Climatic Change from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().