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Financial Development and Economic Growth Impact on the Environmental Degradation in Jordan

Author

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  • Ammar Jreisat

    (Department of Economics and Finance, College of Business Administration, University of Bahrain, P.O. Box 32038, Kingdom of Bahrain.)

Abstract

Conflicting results exist in the literature on the role of financial development and economic growth on environmental degradation. The study's focus is to investigate the influence of economic growth and financial development on environmental degradation. The study examines the impact of financial development and economic growth on environmental degradation in Jordan. The ordinary least square model results depict the significant positive impact of financial development on environmental degradation in fossil energy consumption, urbanization, and trade openness as a control variable. Results base the data from 1976 to 2018 for the economy of Jordan. Some control variables also have an insignificant positive impact on carbon emission, a proxy of environmental degradation. This study recommends Jordan's policymakers push the banking and non-banking financial institutions to provide loaning to facilitate the green and environmentally friendly projects, which causes decreased carbon dioxide emissions.

Suggested Citation

  • Ammar Jreisat, 2021. "Financial Development and Economic Growth Impact on the Environmental Degradation in Jordan," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 157-161.
    • Handle: RePEc:eco:journ2:2021-04-20
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    References listed on IDEAS

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    More about this item

    Keywords

    Energy; Environment; Degradation; Urbanization; Trade.;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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