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)

Research output: Contribution to journalArticle

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
Early online date7 Oct 2020
DOIs
Publication statusE-pub ahead of print - 7 Oct 2020

Keywords

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

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