The implications of the ecological footprint and renewable energy usage on the financial stability of South Asian countries  

作　　者：Muhammad Imran Muhammad Kamran Khan Shabbir Alam Salman Wahab Muhammad Tufail Zhang Jijian 

机构地区：[1]School of Finance and Economics,Jiangsu University,Zhenjiang,212013,Jiangsu,China [2]Business Studies Department,Bahria University Islamabad,Islamabad,Pakistan [3]Department of Economics and Finance,College of Business Administration,University of Bahrain,Sakhir,32038,Bahrain [4]School of Economics,Qingdao University,Qingdao,China [5]School of Economics,Xi’an Jiaotong University,Xian,China

出　　处：《Financial Innovation》2024年第1期1359-1381,共23页金融创新(英文)

基　　金：supported by the grant from National Social Science Fund of China(23BJY085).

摘　　要：This study explores the complex relationships involving ecological footprints,energy use,carbon emissions,governance efficiency,economic prosperity,and financial stability in South Asian nations spanning the period from 2000 to 2022.Employing various methodologies such as cross-sectional dependence tests,co-integration analysis,and first-and second-generation unit-root tests,we use a panel Autoregressive Distributed Lag model,feasible generalized least squares,and Panel Corrected Standard Errors to ensure the robustness of our findings.We find noteworthy positive correlations between several variables,including heightened ecological consciousness,effective governance structures,increased GDP per capita,and amplified CO_(2) emissions.These relationships suggest potential pathways to strengthen the financial stability of the entire region;they also highlight the latent potential of embracing ecologically sustainable practices to fortify economic resilience.Our results also underscore the pivotal role of appropriate governance structures and higher income levels in bolstering financial stability in South Asian countries.Interestingly,we also find negative coefficients associated with the use of renewable energy,suggesting that escalating the adoption of renewable energy could create financial instability.This finding stresses the importance of diversification in energy strategies,cautioning policymakers to carefully consider the financial ramifications of potentially costly imports of renewable energy sources while seeking to reduce carbon emissions,emphasizing the need to strike a balance between ambitious sustainability goals and the pursuit of sustained economic robustness in the region.In considering the implications of these findings,it is crucial to consider each country’s broader socioeconomic context.Our results offer valuable insights for policymakers in developing renewable energy strategies.

关 键 词：Financial stability Ecological footprint Government effectiveness Renewable energy consumption Economic growth Foreign direct investment 

分 类 号：F75[经济管理—国际贸易]