The criticality of financial development and energy consumption for environmental sustainability in OECD countries: Evidence from dynamic panel analysis

Authors

Olatunji Abdul Shobande, University of Aberdeen Business School
Lawrence Ogbeifun, University of Mississippi

Document Type

Article

Publication Date

1-1-2022

Abstract

This study explored whether financial development and energy consumption affect environmental sustainability in Organization for Economic Cooperation and Development (OECD) countries. The empirical evidence used in this study was based on the standard fixed effects and the Arellano-Bover/Bundell Bond dynamic panel approach. Our empirical results demonstrated the importance of a financial development index and energy efficiency for reducing carbon emissions and promoting sustainability in the OECD. The mechanism through which financial development affects carbon emissions has been identified as energy consumption and foreign direct investment. Our study recommends that financial development be prioritised alongside investments in energy efficiency to promote environmental sustainability.

Relational Format

journal article

Recommended Citation

Shobande, O. A., & Ogbeifun, L. (2022). The criticality of financial development and energy consumption for environmental sustainability in OECD countries: Evidence from dynamic panel analysis. International Journal of Sustainable Development & World Ecology, 29(2), 153–163. https://doi.org/10.1080/13504509.2021.1934179

DOI

10.1080/13504509.2021.1934179

Accessibility Status

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