IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2023-03-65.html
   My bibliography  Save this article

Factors Affecting the Environmental Quality: The Role of Renewable Energy Consumption and the Financial Market

Author

Listed:
  • Khanh Vo Thi Van

    (Department of Business Administration, Academy of Finance, Vietnam)

  • Thao Nguyen Le Phuong

    (University of Washington, USA)

Abstract

The objective of the study is to evaluate the effect of renewable energy and factors such as financial development, foreign direct investment, population size and urbanization rate on CO2 emissions in six typical Southeast Asian country between 2000 and 2020. Using quantitative analysis, the study results confirm that the use of renewable energy has the potential to improve environmental quality due to its ability to reduce energy CO2 emissions. However, increasing urbanization rate has a negative impact on environmental quality because urbanization is associated with labor mobility and increased CO2 emissions. There is no evidence of between population size, financial development, foreign direct investment and CO2 emissions.

Suggested Citation

  • Khanh Vo Thi Van & Thao Nguyen Le Phuong, 2023. "Factors Affecting the Environmental Quality: The Role of Renewable Energy Consumption and the Financial Market," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 586-591, May.
    • Handle: RePEc:eco:journ2:2023-03-65
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/14373/7347
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/14373
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dingru, Liu & Onifade, Stephen Taiwo & Ramzan, Muhammad & AL-Faryan, Mamdouh Abdulaziz Saleh, 2023. "Environmental perspectives on the impacts of trade and natural resources on renewable energy utilization in Sub-Sahara Africa: Accounting for FDI, income, and urbanization trends," Resources Policy, Elsevier, vol. 80(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Farrukh Nawaz Kayani & Ismat Nasim & Khalil Abu Saleem, 2024. "Analyzing the Impact of Governance, Environment and Trade on Inward FDI: A Case of Cambodia, Thailand and Vietnam from ASEAN," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 523-534, March.
    2. Musah, Mohammed & Onifade, Stephen Taiwo & Ankrah, Isaac & Gyamfi, Bright Akwasi & Amoako, George Kofi, 2024. "Achieving net-zero emission target in Africa: Are sustainable energy innovations and financialization crucial for environmental sustainability of sub-Saharan African state?," Applied Energy, Elsevier, vol. 364(C).
    3. Meng, Fanting, 2024. "Driving sustainable development: Fiscal policy and the promotion of natural resource efficiency," Resources Policy, Elsevier, vol. 90(C).
    4. Taghizadeh-Hesary, Farhad & Dong, Kangyin & Zhao, Congyu & Phoumin, Han, 2023. "Can financial and economic means accelerate renewable energy growth in the climate change era? The case of China," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 730-743.
    5. Magdalena Osińska & Atif Maqbool Khan & Jacek Kwiatkowski, 2024. "Identifying Economic Factors of Renewable Energy Consumption—A Global Perspective," Energies, MDPI, vol. 17(15), pages 1-26, July.
    6. Wang, Xiaoyi & Chen, Guanqun & Afshan, Sahar & Awosusi, Abraham Ayobamiji & Abbas, Shujaat, 2023. "Transition towards sustainable energy: The role of economic complexity, financial liberalization and natural resources management in China," Resources Policy, Elsevier, vol. 83(C).
    7. Kohnert, Dirk, 2024. "The impact of the industrialized nation’s CO2 emissions on climate change in Sub-Saharan Africa: Case studies from South Africa, Nigeria and the DR Congo," MPRA Paper 120212, University Library of Munich, Germany.
    8. Simionescu, Mihaela & Radulescu, Magdalena & Cifuentes-Faura, Javier & Balsalobre-Lorente, Daniel, 2023. "The role of renewable energy policies in TACKLING energy poverty in the European UNION," Energy Policy, Elsevier, vol. 183(C).
    9. Onifade, Stephen Taiwo, 2023. "Environmental impacts of energy indicators on ecological footprints of oil-exporting African countries: Perspectives on fossil resources abundance amidst sustainable development quests," Resources Policy, Elsevier, vol. 82(C).
    10. Bai, Rongjun & Liu, Yan, 2023. "Natural resources as a source of financing energy poverty reduction? Resources extraction perspective," Resources Policy, Elsevier, vol. 82(C).
    11. Estevão, João & Lopes, José Dias, 2024. "SDG7 and renewable energy consumption: The influence of energy sources," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    12. Jahanger, Atif & Usman, Muhammad & Kousar, Rakhshanda & Balsalobre-Lorente, Daniel, 2023. "Implications for optimal abatement path through the deployment of natural resources, human development, and energy consumption in the era of digitalization," Resources Policy, Elsevier, vol. 86(PB).
    13. Zhang, Shaohe & Shinwari, Riazullah & Zhao, Shikuan & Dagestani, Abd Alwahed, 2023. "Energy transition, geopolitical risk, and natural resources extraction: A novel perspective of energy transition and resources extraction," Resources Policy, Elsevier, vol. 83(C).
    14. Kohnert, Dirk, 2024. "L’impact des émissions de CO2 des pays industrialisés sur le changement climatique en Afrique subsaharienne: Études de cas d’Afrique du Sud, du Nigeria et de la RD Congo [The impact of the industri," MPRA Paper 120231, University Library of Munich, Germany.
    15. Kohnert, Dirk, 2024. "Auswirkungen der CO2-Emissionen der Industrienationen auf den Klimawandel in Subsahara-Afrika: Fallstudien aus Südafrika, Nigeria und der DR Kongo [The impact of the industrialized nation's CO2 emi," MPRA Paper 120252, University Library of Munich, Germany.
    16. Lester C. Hunt & Paraskevas Kipouros & Zafeirios Lamprakis, 2024. "The Drivers of Renewable Energy: A Global Empirical Analysis of Developed and Developing Countries," Energies, MDPI, vol. 17(12), pages 1-19, June.
    17. Li, Yabo & Teng, Rui & Iqbal, Mubasher, 2023. "Natural resources rent and climate vulnerability: An inverted U-shaped relationship moderated by productive capacity, trade openness, and urbanization in resource-abundant countries," Resources Policy, Elsevier, vol. 86(PB).
    18. Wang, Qiang & Cheng, Xinchen & Pata, Ugur Korkut & Li, Rongrong & Kartal, Mustafa Tevfik, 2024. "Intermediating effect of mineral resources on renewable energy amidst globalization, financial development, and technological progress: Evidence from globe based on income-groups," Resources Policy, Elsevier, vol. 90(C).

    More about this item

    Keywords

    Renewables; CO2; Association of South East Asian Nations; Financial development; Foreign direct investment;
    All these keywords.

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2023-03-65. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.