The role of financial development, R&amp;D expenditure, globalization and institutional quality in energy consumption in India: New evidence from the QARDL approach

Godil, Danish Iqbal; Sharif, Arshian; Ali, Muhammad; Öztürk, İlhan; Usman, Rimsha

doi:10.1016/j.jenvman.2021.112208

Cited by 131 publications

(41 citation statements)

References 88 publications

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“…Muhammad and Long (2021) analyse that government stability, corruption control and law are important catalysts for CO 2 reduction for 65 countries. Godil, Sharif, Ali, Ozturk, and Usman (2021) point out that institutional quality in India decreases environmental problems by reducing traditional energy consumption. Contrary to these studies, Hassan et al (2020) conclude that institutional quality enhances CO 2 emissions for Pakistan.…”

Section: Literature Reviewmentioning

confidence: 99%

The relationship between institutional quality and ecological footprint: Is there a connection?

Üzar

2021

Natural Resources Forum

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Although researchers have made significant efforts to explain the influence of institutions on environmental indicators such as CO2 emissions, the relationship between institutional quality and the ecological footprint has been neglected. The gap in the literature reveals an outstanding question: can institutions reduce their countryʼs ecological footprint? As a result, this study aims to investigate the effects of institutional quality and control variables on the ecological footprint for the period 1992–2015 in E‐7 countries through the AMG and CCEMG estimators. The findings show that institutional quality reduces the ecological footprint for the entire panel. Conversely, economic growth and energy consumption increase ecological pressure on E‐7 countries. In addition, the impact of institutional quality on the ecological footprint demonstrates heterogeneity at the country level. While institutions decrease the ecological footprint in China, India, Indonesia, and Russia, the study does not find such a relationship in other countries. Besides, energy consumption seems to be the most important factor in increasing ecological pressure in all countries. As drawn from the results, it can be said that improving institutional quality and increasing renewable resources in the energy portfolio are strategic actions in terms of improving environmental quality in E‐7 countries.

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Section: Literature Reviewmentioning

confidence: 99%

The relationship between institutional quality and ecological footprint: Is there a connection?

Üzar

2021

Natural Resources Forum

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“…Aslan et al [38] explored the interaction among financial development, economic growth, and energy use in G7 economies and emerging economies over the 1990-2015 duration through the VAR approach and reached the conclusion that stock market development positively affected the energy use in both group countries, but banking sector development positively affected the energy use in emerging economies and decreased the energy use in G7 economies. Godil et al [39] analyzed the factors behind energy use in India over the 1995-2018 duration through Quantile Autoregressive Distributed Lag and disclosed a positive influence of financial development over energy use.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial Development, Financial Inclusion and Primary Energy Use: Evidence from the European Union Transition Economies

et al. 2021

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The main objective of the research is to analyze the impact of financial sector development indicators and financial institutions access on primary energy use based on a sample of European Union transition members over 20 years period (1996–2017) through panel cointegration and causality tests that allow for cross-section dependence. The causality analysis revealed that the direction of the causality among financial development indicators, financial institutions access, and primary energy use varied among the countries. On the other side, panel cointegration coefficients disclosed that the financial development index positively affected the primary energy use, but private credit did not have a significant effect on the primary energy use. Furthermore, financial institutions’ access had a significant negative impact on primary energy use. However, country-level cointegration coefficients indicated that the financial development index positively affected the primary energy use in Bulgaria, Croatia, Czechia, Hungary, and Slovenia, and private credit also had a positive impact on primary energy use in Bulgaria, Czechia, Estonia, Hungary, Lithuania, Poland, and Slovakia, but the effect of financial development index on primary energy use was found to be very higher than that of private credit. Moreover, financial institutions’ access negatively affected the primary energy use in Croatia, Estonia, Hungary, Poland, and Romania.

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“…'Financial development' mainly refers to an increase in the financial activities of a country, such as an increase in foreign direct investment (FDI), an increase in the provision of credit to the private sector, the financial sector, and to the private sector by the banks, or an increase in stock market activities of an economy. Financial development plays a crucial role in a country's financial systems, increasing economic efficiency but also energy consumption levels (Sadorsky, 2011;Islam et al, 2013c;Husaini and Lean, 2015;Le and Ozturk, 2020;Baloch et al, 2021;Godil et al, 2021. Three different avenues exist to explain the financial development and energy consumption nexus. First, financial development encourages more inflows of FDI, which lead to enhancing energy consumption and economic growth.…”

Section: Introductionmentioning

confidence: 99%

Nexus Between Financial Development, FDI, Globalization, Energy Consumption and Environment: Evidence From BRI Countries

Imran

Haseeb

et al. 2021

Front. Energy Res.

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This study explores the nexus between foreign direct investment, financial development, energy consumption, economic growth and globalization for a selected panel of Belt and Road Initiative (BRI) countries over the period 1990–2016. After employing appropriate panel unit root tests, the Westerlund co-integration test, the DSUR long-run panel estimation approach and the Dumitrescu-Hurlin panel causality test, the results reveal a significant long-run relationship among the analyzed variables. The DSUR results show that energy consumption is boosted by 0.023 and 0.790% when a 1% rise occurs in foreign direct investment and economic growth. A 1% increase in financial development and globalization reduces energy consumption by 0.049 and 0.621%, respectively. We also found bidirectional relationships of energy consumption with financial development and foreign direct investment with globalization for the selected sample of our study. A unidirectional causal relationship exists, moving from energy consumption towards both financial development and foreign direct investment. An increase in FDI, the introduction of energy-efficient technology, and development of the financial sector lead to sustainable economic growth. The findings reveal the need to formulate policies that promote energy efficiency among Belt and Road (BR) countries. The policy implications of this study are presented in the Conclusion.

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The role of financial development, R&D expenditure, globalization and institutional quality in energy consumption in India: New evidence from the QARDL approach

Cited by 131 publications

References 88 publications

The relationship between institutional quality and ecological footprint: Is there a connection?

The relationship between institutional quality and ecological footprint: Is there a connection?

Financial Development, Financial Inclusion and Primary Energy Use: Evidence from the European Union Transition Economies

Nexus Between Financial Development, FDI, Globalization, Energy Consumption and Environment: Evidence From BRI Countries

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