The role of financial deepening and green technology on carbon emissions: Evidence from major OECD economies

Sudharshan Reddy Paramati (Lead / Corresponding author), Di Mo, Ruixian Huang (Lead / Corresponding author)

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    202 Citations (Scopus)
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    Abstract

    This paper investigates the role of financial deepening, green technology, foreign direct investment (FDI), per capita income and trade openness on carbon emissions in a panel of 25 OECD economies. The paper uses robust panel econometric techniques and yearly data, 1991–2016. The empirical evidences from augmented mean group and group-mean estimators reveal that green technology, FDI inflows and trade openness reduce carbon emissions, while financial deepening and per capita income positively contribute. Overall, it implies that green technology, along with FDI and trade, is the major factor that helps to reduce the carbon emissions in the OECD economies.
    Original languageEnglish
    Article number101794
    Number of pages6
    JournalFinance Research Letters
    Volume41
    Early online date7 Oct 2020
    DOIs
    Publication statusPublished - Jul 2021

    Keywords

    • FDI
    • Financial deepening
    • OECD economies
    • green technology
    • per capita income

    ASJC Scopus subject areas

    • Finance

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