Impact of Sustainable Financial and Economic Development on Greenhouse Gas Emission in the Developed and Converging Economies

Magdalena Ziolo, Krzysztof Kluza and Anna Spoz
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Magdalena Ziolo: Faculty of Economics and Management, University of Szczecin, 71-101 Szczecin, Poland
Krzysztof Kluza: Collegium of Economic Analysis, SGH Warsaw School of Economics, 02-554 Warsaw, Poland
Anna Spoz: Institute of Economics and Finance, The John Paul II Catholic University of Lublin, 20-950 Lublin, Poland

Energies, 2019, vol. 12, issue 23, 1-30

Abstract: Several studies have examined the relationship between environmental performance and economic development. However, most of them did not take sustainable development and financial development into account. The study argues that sustainable financial and economic development contributes to reducing greenhouse gas emissions. We use the panel data regression model to capture the relationship between greenhouse gas emission and sustainable economic and financial development. The panel data refers to the period of 2007–2017. The EU 25 countries were analysed. The results show that the relationship between sustainable financial development and environmental degradation is more relevant for converging economies than developed countries. We found that the variable “energy productivity” has the strongest impact on greenhouse gas emissions for both country groups (converging and developed); however, it increases for developed countries and it decreases the greenhouse gas emissions for converging economies. We also found that environmental taxes are an efficient instrument that mitigates greenhouse gas emissions, especially in developed countries group.

Keywords: environmental degradation; economic development; financial development; sustainability; regression (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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