Pathway to Cleaner Environment: How Effective Are Renewable Electricity and Financial Development Approaches?

Bangyong Hu, Andrew Adewale Alola, Muhammad Zubair Tauni (), Tomiwa Sunday Adebayo and Shujaat Abbas
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Andrew Adewale Alola: Inland Norway University of Applied Sciences - Høgskolen i Innlandet, Nişantaşı University, LAU - Lebanese American University
Muhammad Zubair Tauni: Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School
Tomiwa Sunday Adebayo: Cyprus International University, New Uzbekistan University, LAU - Lebanese American University

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Abstract: While Sustainable Development Goals (SDGs) 13 and 7 are increasingly being explored in climate change research, financialization remains a fundamental part of the discourse on clean and renewable energy development. This study focuses on a policy reconfiguration that may be necessary to further advance clean environment in Canada. More precisely, the research evaluates the co-movement of carbon dioxide (CO2) emissions, financial development, renewable electricity and economic growth. The data, which encompass the quarterly periods from 1984Q1 to 2021Q4, are analysed via the novel wavelet local multiple correlation method. This method is capable of capturing the effect of two or three independent variables on the dependant variable at different frequencies and periods. In this study, the results show that economic growth intensifies ecological deterioration in all periods even as renewable electricity utilisation and financial development restrict ecological deterioration in the medium and long term. Additionally, financial development and renewable electricity consumption promote economic growth in the short, medium and long term. On the basis of these findings, a policy agenda that builds on the SDGs is proposed. Although this policy framework aims to achieve the objectives of SDG 13 and 7 in Canada, it may be extended to other developed countries. \textcopyright 2023 The Author(s)

Keywords: alternative energy; Canada; carbon emission; CO2 emissions; correlation; economic growth; energy use; environmental economics; Environmental sustainability; finance; Financial development; Renewable electricity consumption; Sustainable development; Sustainable Development Goal (search for similar items in EconPapers)
Date: 2023
Note: View the original document on HAL open archive server: https://normandie-univ.hal.science/hal-04435515v1
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Published in Structural Change and Economic Dynamics, 2023, 67, pp.277-292. ⟨10.1016/j.strueco.2023.08.003⟩

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Journal Article: Pathway to cleaner environment: How effective are renewable electricity and financial development approaches? (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04435515

DOI: 10.1016/j.strueco.2023.08.003

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