IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v59y2023i14p3968-3981.html
   My bibliography  Save this article

The Dynamic Nexus Among Energy Diversification and Carbon Emissions in the E7 Economies: Investigating the Moderating Role of Financial Development

Author

Listed:
  • Barsha Nibedita
  • Mohd Irfan

Abstract

This study investigates the role of financial development in moderating the impact of energy diversification on carbon emissions reduction, using a sample of seven major emerging (E7) economies over the period 1995–2018. A panel cointegration test is employed to investigate any long-run equilibrium relationship among variables. The moderating effect is uncovered using a panel autoregressive distributed lag (ARDL) model. The results from the cointegration test reveal the presence of a long-run equilibrium linkage among financial development, energy diversification, and carbon emissions. The panel ARDL model results indicate that the carbo n emissions reduction effect of energy diversification is strengthened by an increased level of financial development in the long-run. Notably, a 1% increase in energy diversification accompanied by a 1% increase in financial development favorably moderates the carbon emissions reduction impact by about 2.11%. This finding is novel and contributes to our understanding of how financial development moderates the carbon emissions reduction effect of energy diversification. Based on this finding, appropriate policy recommendations are suggested to achieve energy transition goals in the E7 economies.

Suggested Citation

  • Barsha Nibedita & Mohd Irfan, 2023. "The Dynamic Nexus Among Energy Diversification and Carbon Emissions in the E7 Economies: Investigating the Moderating Role of Financial Development," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 59(14), pages 3968-3981, November.
    • Handle: RePEc:mes:emfitr:v:59:y:2023:i:14:p:3968-3981
    DOI: 10.1080/1540496X.2022.2161817
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2022.2161817
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2022.2161817?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shahbaz, Muhammad & Siddiqui, Aaliyah & Ahmad, Shabbir & Jiao, Zhilun, 2023. "Financial development as a new determinant of energy diversification: The role of natural capital and structural changes in Australia," Energy Economics, Elsevier, vol. 126(C).
    2. Nibedita, B. & Irfan, M., 2024. "Energy mix diversification in emerging economies: An econometric analysis of determinants," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).
    3. Zahra, Samia & Fatima, Syeda Noreen, 2024. "Do energy diversification and green growth transition help to achieve the target of carbon neutrality? Testing the validity of the EKC hypothesis under the prism of green growth," Applied Energy, Elsevier, vol. 373(C).
    4. Xin, Liguo & Ahmad, Manzoor & Khattak, Shoukat Iqbal, 2023. "Impact of innovation in hybrid electric vehicles-related technologies on carbon dioxide emissions in the 15 most innovative countries," Technological Forecasting and Social Change, Elsevier, vol. 196(C).

    More about this item

    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:mes:emfitr:v:59:y:2023:i:14:p:3968-3981. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    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.