Decoding the complex relation of financial development and carbon emission using bibliometric analysis

Sheena Rehman, Ahmad Hasan, Vandana Singh and Faozi A. Almaqtari

Cogent Business & Management, 2024, vol. 11, issue 1, 2294524

Abstract: The intensifying global concern over climate change has spurred research into the intricate relationship between financial development (FD) and carbon emissions (CE). Although studies have explored the impact of FD on CE, the nature of the association still needs to be discovered, with existing literature offering a mosaic of findings. Therefore, this Study delves into the complex relationship by scrutinizing empirical research on FD proxies from the Scopus and WOS databases, covering 2014 to 2023. The Bibliometric analysis identifies China as the leading contributor to scientific research on FD and CE, followed by Turkey and Pakistan. Noteworthy contributors include Muhammad Shahbaz, Cyprus International University, and Environmental Science and Pollution Research. The study reveals a consistent surge in publications on FD and CE, reflecting growing global research from 2019 to 2023. Furthermore, it reveals that various factor, including economic growth patterns, energy consumption trends, and environmental regulations, likely influence FD’s impact on CE. These findings emphasize a nuanced understanding of the FD and CE relationship. Future research should aim to develop a robust theoretical framework to capture the intricate interplay between FD and CE, providing insights for policy decisions addressing climate change and sustainable economic growth.The intricate nexus between financial development and carbon emissions has emerged as a pivotal research frontier in environmental sustainability. This study, “Decoding the Complex Relation of Financial Development and Carbon Emissions Using Bibliometric Analysis,” employs a novel methodological approach to elucidate the multifaceted nature of this relationship. Leveraging the analytical prowess of bibliometrics, we navigate the vast corpus of existing research, meticulously mapping the key thematic nodes and intricate interconnections; this enables us to discern the field’s dominant theoretical paradigms and empirical findings. Our analysis reveals a nuanced and often contradictory landscape where the impact of financial development on carbon emissions is contingent upon a constellation of contextual factors. While some studies posit a linear relationship, suggesting financial growth exacerbates environmental degradation through heightened economic activity, others contend that well-developed financial systems can facilitate the diffusion of clean technologies and foster investments in renewable energy infrastructure, ultimately mitigating carbon footprints. These findings underscore the imperative to move beyond simplistic narratives and embrace a more holistic understanding of the interplay between financial systems and environmental outcomes. Policymakers task crafting nuanced regulatory frameworks that incentivize sustainable financial practices and channel investments toward green initiatives. Furthermore, academic inquiry must continue to unravel the intricate mechanisms through which financial development influences environmental performance, paving the way for developing evidence-based solutions. A collective effort is required to navigate the complex nexus between financial development and carbon emissions. We can forge a path toward a future where economic prosperity and environmental well-being coexist in harmonious equilibrium by fostering interdisciplinary dialogue, embracing innovative research methodologies, and implementing effective policy interventions.

Date: 2024
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DOI: 10.1080/23311975.2023.2294524

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