THE RELATIONSHIP BETWEEN CO 2 EMISSIONS AND FINANCIAL DEVELOPMENT EVIDENCE FROM OECD COUNTRIES

This paper examines the relationships among CO 2 emissions, energy use, GDP, and financial development for 25 OECD countries over the 1971–2007 period. From the results of the panel FMOLS and the cross-sectional dependence regression, we do not find any support for the existence of the EKC for OECD...

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Bibliographic Details
Published inSingapore economic review Vol. 60; no. 5; p. 1550117
Main Authors LEE, JOE-MING, CHEN, KU-HSIEH, CHO, CHIN-HO
Format Journal Article
LanguageEnglish
Published 01.12.2015
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Summary:This paper examines the relationships among CO 2 emissions, energy use, GDP, and financial development for 25 OECD countries over the 1971–2007 period. From the results of the panel FMOLS and the cross-sectional dependence regression, we do not find any support for the existence of the EKC for OECD countries. Moreover, the results present that the coefficient of financial development to CO 2 emissions is negative and statistically significant for eight countries (Austria, Denmark, Germany, Ireland, the Netherlands, Norway, Portugal, and the U.S.). The findings of this study thus show that financial development can help EU countries to adjust their CO 2 emissions.
ISSN:0217-5908
1793-6837
DOI:10.1142/S0217590815501179