IDEAS home Printed from https://ideas.repec.org/a/sae/engenv/v35y2024i7p3785-3802.html
   My bibliography  Save this article

Financial instability and environmental degradation: Evidence from South Asia

Author

Listed:
  • Faisal Abbas

Abstract

This study examines the impact of financial instability (FI) on environmental degradation (ED) along with economic growth (EG), foreign direct investment (FDI), and energy consumption (EC) in five South Asian economies from 1980 to 2021. The study uses a fixed-effect panel model and a two-step system GMM for robust outcomes. The empirical findings demonstrate that FI has a positive and significant effect on ED in South Asian economies. However, the impact of FI on ED varies across South Asian countries. Overall, the impacts of EG, FDI, and EG are positive and significant on ED in South Asia. The effects of EG, FDI, and EG are also heterogeneous for countries in South Asia. However, FDI reduces ED in Pakistan, Bangladesh, and India. Therefore, the study provides several policy recommendations to combat ED in the South Asian region.

Suggested Citation

  • Faisal Abbas, 2024. "Financial instability and environmental degradation: Evidence from South Asia," Energy & Environment, , vol. 35(7), pages 3785-3802, November.
  • Handle: RePEc:sae:engenv:v:35:y:2024:i:7:p:3785-3802
    DOI: 10.1177/0958305X231177733
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0958305X231177733
    Download Restriction: no

    File URL: https://libkey.io/10.1177/0958305X231177733?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
    ---><---

    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:sae:engenv:v:35:y:2024:i:7:p:3785-3802. 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: SAGE Publications (email available below). General contact details of provider: .

    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.