EconPapers    
Economics at your fingertips  
 

Do Foreign Capital and Financial Development affect Clean Energy Consumption and Carbon Emissions? Evidence from BRICS and Next-11 Countries

Muhammad Shahbaz (), Mehmet Destek () and Michael Polemis ()

MPRA Paper from University Library of Munich, Germany

Abstract: This study investigates the main interrelations generated by the impact of foreign capital along with financial development on clean energy consumption and environmental degradation proxied by the inclusion of CO2 emissions. In doing so, we used panel data techniques targeted at BRICS and Next-11 countries spanning the period 1992-2016. Our paper strongly accounts for the existence of cross-sectional dependence and non-stationarity usually ignored by the other empirical studies. In case of BRICS, the empirical findings reveal that economic growth increases clean energy consumption while financial development reduces it. On the contrary, foreign capital inflows do not appear to have a statistically significant effect on clean energy. We argue that, economic growth, foreign capital inflows and financial development increase CO2 emissions, while clean energy consumption reduces environmental degradation by mitigating carbon emissions in BRICS countries. In case of Next-11 countries, empirical findings indicate that economic growth and foreign capital have positive effect on clean energy consumption. However, economic growth and financial development increases CO2 emissions in N-11 countries.

Keywords: Foreign Capital; Financial Development; Clean Energy; CO2 emissions; Panel Data (search for similar items in EconPapers)
JEL-codes: G1 Q4 Q5 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cis, nep-ene, nep-env and nep-fdg
Date: 2018-07-31
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/89267/1/MPRA_paper_89267.pdf original version (application/pdf)

Related works:
Journal Article: Do Foreign Capital and Financial Development Affect Clean Energy Consumption and Carbon Emissions? Evidence from BRICS and Next-11 Countries (2018) Downloads
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:pra:mprapa:89267

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2019-04-23
Handle: RePEc:pra:mprapa:89267