The impact of financial development on accelerating the environmental degradation in Bangladesh

User Rating:  / 0
PoorBest 

Authors:


S.Chowdhury, orcid.org/0000-0001-6961-5933, Daffodil International University, Dhaka, the Peoples Republic of Bangladesh, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

M.Rahman, orcid.org/0000-0003-4391-0840, Comilla University, Kotbari, Cumilla, the Peoples Republic of Bangladesh, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

N.M.Zayed, orcid.org/0000-0001-7519-6552, Daffodil International University, Dhaka, the Peoples Republic of Bangladesh, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

K.B.M.Rajibul Hasan, orcid.org/0000-0002-3142-9390, Agrani Bank Limited, Dhaka, the Peoples Republic of Bangladesh, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

V.Nitsenko, orcid.org/0000-0002-2185-0341, SCIRE Foundation, Warsaw, the Republic of Poland, email: This email address is being protected from spambots. You need JavaScript enabled to view it.


повний текст / full article



Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu. 2022, (2): 102 - 106

https://doi.org/10.33271/nvngu/2022-2/102



Abstract:



Purpose.
To examine long-run and short-run effects of industrial financial development on carbon emissions in Bangladesh.


Methodology.
The auto-regressive distributed lag model was implemented on the data collected from 1976 to 2020 to exhibit cointegration in regression form. Traditional unit roots as well as the Zivot-Andrews structural break test was conducted for investigating a significant single-break. The auto-regressive distributed lag model (ARDL) model approved long-run cointegration having a structural break in this study.


Findings.
The results conclude that energy consumption triggers carbon emissions with a significant effect on short and long-run models but financial development has no significant effect on environmental degradation. A considerable U-shape Environmental Kuznets Curve hypothesis is observed at the nexus of carbon emissions and economic growth.


Originality.
The current study proposed to contribute to the existing literature by assessing the effects of financial development, economic growth, and energy consumption on environmental degradation in Bangladesh using modern econometric methodologies.


Practical value.
The results obtained will be useful to scientists, economists and practitioners dealing with economic and environmental development of different industries.



Keywords:
financial development, industry, energy consumption, ARDL, economic growth, environmental degradation

References.


1. Javid, M., & Sharif, F. (2016). Environmental Kuznets curve and financial development in Pakistan. Renewable and Sustainable Energy Reviews, 54, 406-414. https://doi.org/10.1016/j.rser.2015.10.019.

2. Pata, U.K. (2018). Renewable energy consumption, urbanization, financial development, income and CO2 emissions in Turkey: testing EKC hypothesis with structural breaks. Journal of Cleaner Production, 187, 770-779. https://doi.org/10.1016/j.jclepro.2018.03.236

3. Phong, L.H. (2019). Globalization, financial development, and environmental degradation in the presence of environmental Kuznets curve: evidence from ASEAN-5 countries. International Journal of Energy Economics and Policy, 9(2), 40-50.

4. Shahbaz, M., Haouas, I., Sohag, K., & Ozturk, I. (2020). The financial development-environmental degradation nexus in the United Arab Emirates: the importance of growth, globalization and structural breaks. Environmental Science and Pollution Research, 27, 10685-10699. https://doi.org/10.1007/s11356-019-07085-8.

5. Shahbaz, M., Khan, S., Ali, A., & Bhattacharya, M. (2017). The impact of globalization on CO2 emissions in China. The Singapore Economic Review, 62(04), 929-957. https://doi.org/10.1142/S0217590817400331.

6. World Bank (2020). World Development Indicators of 2020 (CD-ROM), IBRD. Washington DC: World Bank. Retrieved from https://data.worldbank.org/country/BD.

7. Bazaluk, O., Zhykharieva, V., Vlasenko, O., Nitsenko, V., Streimikiene, D., & Balezentis, T. (2022). Optimization of the Equity in Formation of Investment Portfolio of a Shipping Company. Mathematics, 10, 363. https://doi.org/10.3390/math10030363.

8. Sarker, S.A., Wang, S., & Adnan, K.M. (2019). Energy consumption and economic growth nexus in Bangladesh. Journal of Systems Science and Information, 7(6), 497-509. https://doi.org/10.21078/JSSI-2019-497-13.

9. Coelho, S.T., Sanches-Pereira, A., Tudeschini, L.G., & Goldemberg, J. (2018). The energy transition history of fuelwood replacement for liquefied petroleum gas in Brazilian households from 1920 to 2016. Energy Policy, 123, 41-52. https://doi.org/10.1016/j.enpol.2018.08.041.

10. Sica, E. (2014). Economic dualism and air quality in Italy: testing the Environmental Kuznets Curve hypothesis. International journal of environmental studies, 71(4), 463-480. https://doi.org/10.1080/00207233.2014.928114.

11. World Bank (2015). World Development Indicators of 2020 (CD-ROM), IBRD. Washington DC: World Bank. Retrieved from https://data.worldbank.org/country/BD.

12. Bashir, M.A., Sheng, B., Doan, B., Sarwar, S., & Shahzad, U. (2020). Export product diversification and energy efficiency: Empirical evidence from OECD countries. Structural Change and Economic Dynamics, 55, 232-243. https://doi.org/10.1016/j.strueco.2020.09.002.

13. Jamel, L., & Derbali, A. (2016). Do energy consumption and economic growth lead to environmental degradation? Evidence from Asian economies. Cogent Economics & Finance, 4(1), 1170653. https://doi.org/10.1080/23322039.2016.1170653.

14. Bangladesh Economic Review (2018). Finance division, ministry of finance. Retrieved from https://mof.gov.bd/site/page/44e399b3-d378-41aa-86ff-8c4277eb0990/BangladeshEconomicReview.

15. Dogan, E., & Turkekul, B. (2016). CO2 emissions, real output, energy consumption, trade, urbanization and financial development: testing the EKC hypothesis for the USA. Environmental Science and Pollution Research, 23(2), 1203-1213. https://doi.org/10.1007/s11356-015-5323-8.

 

Visitors

6238086
Today
This Month
All days
2540
64763
6238086

Guest Book

If you have questions, comments or suggestions, you can write them in our "Guest Book"

Registration data

ISSN (print) 2071-2227,
ISSN (online) 2223-2362.
Journal was registered by Ministry of Justice of Ukraine.
Registration number КВ No.17742-6592PR dated April 27, 2011.

Contacts

D.Yavornytskyi ave.,19, pavilion 3, room 24-а, Dnipro, 49005
Tel.: +38 (056) 746 32 79.
e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
You are here: Home Home EngCat Archive 2022 Content №2 2022 The impact of financial development on accelerating the environmental degradation in Bangladesh