Validity of the environmental Kuznets Curve in Bangladesh under the role of financial development

Omor Faruq, Sanaullah Talukder, Evanta Hashem Katha and Mashrura Kabir Shaeba
Additional contact information
Omor Faruq: Bangladesh Bank, Bangladesh
Sanaullah Talukder: Bangladesh Bank, Bangladesh
Evanta Hashem Katha: Bangladesh Bank, Bangladesh
Mashrura Kabir Shaeba: Bangladesh Bank, Bangladesh

Theoretical and Applied Economics, 2024, vol. XXXI, issue 4(641), Winter, 195-212

Abstract: This paper examines the EKC hypothesis for Bangladesh between 1974 and 2018. Using the ARDL model of bound testing method, we found the evidence of the long-term association between per capita CO2 emissions, per capita GDP, consumption of energy and financial development. Moreover, the results show that the EKC hypothesis holds true for Bangladesh during the study period. Furthermore, the coefficient of financial development is positive and significant, which suggests that financial development in Bangladesh comes at the cost of environmental degradation. Therefore, policies should be taken which will foster financial institutes for investing more in energy efficient and green energy projects or environmentally sustainable low carbon projects which are not pollution intensive.

Keywords: EKC; Financial development; CO2 emissions; ARDL. (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://store.ectap.ro/articole/1795.pdf (application/pdf)
http://www.ectap.ro/articol.php?id=1795&rid=157 (text/html)

Related works:
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:agr:journl:v:xxxi:y:2024:i:4(641):p:195-212

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Mircea Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu ().