The Financial Kuznets Curve of Energy Consumption: Global Evidence
In this study, we explore the simultaneous existence of a Financial Kuznets Curve -an inverted U-shape relation between financial development and energy consumption- and Income Kuznets Curve -an inverted U-shape relation between income and energy consumption-for a panel of 85 countries. In terms of...
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ph-ateneo-arc.asog-pubs-12842024-03-18T05:19:30Z The Financial Kuznets Curve of Energy Consumption: Global Evidence Doytch, Nadia Elheddad, Mohamed Hammoudeh, Shawkat In this study, we explore the simultaneous existence of a Financial Kuznets Curve -an inverted U-shape relation between financial development and energy consumption- and Income Kuznets Curve -an inverted U-shape relation between income and energy consumption-for a panel of 85 countries. In terms of the financial Kuznets relation, we compare the effects of three stock market development indicators (i.e., stock market capitalization ratio, stock market value traded, and stock market turnover ratio) with the counterpart effects of three credit market indicators (i.e., domestic credit provided by the banking sector, liquid liabilities, and broad money supply. Drawing on the existing literature, we control for changes in country openness, natural resource endowments, and inflation by applying four methods in parallel: the parametric analysis (dynamic system GMM), and the non-parametric (panel quantile regression) as a robustness check. The results for both Kuznets curves are robust to all four methods. They indicate a simultaneous existence of an income Kuznets curve and a Financial Kuznets Curve when the indicators of the stock market development are considered. However, no Financial Kuznets Curve exists with respect to the credit markets’ development. When the credit markets are considered, only the income Kuznets curve is detected. The existence of a relationship between the stock market development and energy consumption has implications for national energy policies. Stock markets should be used actively for the promotion and funding of “green finance” industrial projects, encouraging innovation and new technologies for cleaner production. Our findings are also useful for crafting different financial development policies for countries that are seeking to encourage or discourage energy consumption. 2023-06-01T07:00:00Z text https://archium.ateneo.edu/asog-pubs/282 https://doi.org/10.1016/j.enpol.2023.113498 Ateneo School of Government Publications Archīum Ateneo Credit market development Energy consumption Financial Kuznets curve Income Kuznets curve Stock market development Energy Policy Public Affairs, Public Policy and Public Administration Social and Behavioral Sciences |
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Credit market development Energy consumption Financial Kuznets curve Income Kuznets curve Stock market development Energy Policy Public Affairs, Public Policy and Public Administration Social and Behavioral Sciences |
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Credit market development Energy consumption Financial Kuznets curve Income Kuznets curve Stock market development Energy Policy Public Affairs, Public Policy and Public Administration Social and Behavioral Sciences Doytch, Nadia Elheddad, Mohamed Hammoudeh, Shawkat The Financial Kuznets Curve of Energy Consumption: Global Evidence |
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In this study, we explore the simultaneous existence of a Financial Kuznets Curve -an inverted U-shape relation between financial development and energy consumption- and Income Kuznets Curve -an inverted U-shape relation between income and energy consumption-for a panel of 85 countries. In terms of the financial Kuznets relation, we compare the effects of three stock market development indicators (i.e., stock market capitalization ratio, stock market value traded, and stock market turnover ratio) with the counterpart effects of three credit market indicators (i.e., domestic credit provided by the banking sector, liquid liabilities, and broad money supply. Drawing on the existing literature, we control for changes in country openness, natural resource endowments, and inflation by applying four methods in parallel: the parametric analysis (dynamic system GMM), and the non-parametric (panel quantile regression) as a robustness check. The results for both Kuznets curves are robust to all four methods. They indicate a simultaneous existence of an income Kuznets curve and a Financial Kuznets Curve when the indicators of the stock market development are considered. However, no Financial Kuznets Curve exists with respect to the credit markets’ development. When the credit markets are considered, only the income Kuznets curve is detected. The existence of a relationship between the stock market development and energy consumption has implications for national energy policies. Stock markets should be used actively for the promotion and funding of “green finance” industrial projects, encouraging innovation and new technologies for cleaner production. Our findings are also useful for crafting different financial development policies for countries that are seeking to encourage or discourage energy consumption. |
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Doytch, Nadia Elheddad, Mohamed Hammoudeh, Shawkat |
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Doytch, Nadia Elheddad, Mohamed Hammoudeh, Shawkat |
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Doytch, Nadia |
title |
The Financial Kuznets Curve of Energy Consumption: Global Evidence |
title_short |
The Financial Kuznets Curve of Energy Consumption: Global Evidence |
title_full |
The Financial Kuznets Curve of Energy Consumption: Global Evidence |
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The Financial Kuznets Curve of Energy Consumption: Global Evidence |
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The Financial Kuznets Curve of Energy Consumption: Global Evidence |
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financial kuznets curve of energy consumption: global evidence |
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Archīum Ateneo |
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2023 |
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https://archium.ateneo.edu/asog-pubs/282 https://doi.org/10.1016/j.enpol.2023.113498 |
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