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Environmental science and pollution research international
Apr, 2022;29 (17): 25902-25915.

The impact of financial development on carbon dioxide emissions in Jamaica.

Leanora Brown, Adian McFarlane, Anupam Das, Kaycea Campbell
Author Information
  1. Leanora Brown: Department of Finance and Economics, University of Tennessee at Chattanooga, Chattanooga, TN, USA. Leanora-Brown@utc.edu. ORCID
  2. Adian McFarlane: School of Management, Economics, and Mathematics, King's University College at Western University Canada, London, ON, Canada.
  3. Anupam Das: Department of Economics, Justice, and Policy Studies, Mount Royal University, Calgary, AB, Canada.
  4. Kaycea Campbell: Department of Economics, Los Angeles Pierce College, Woodland Hills, CA, USA.
PMID: 34851484 DOI: 10.1007/s11356-021-17519-x

Abstract

We determine the possible impacts of changes in financial development on carbon dioxide (CO) emissions in Jamaica for the period 1980 to 2018, with special attention given to the possible existence of asymmetries in this relationship. There are three major findings. First, there is a unique cointegrating relationship among the variables where CO emissions are a function of financial development, real domestic economic activity, and trade openness. Financial development negatively impacts CO emissions in this relationship, even though CO emissions are impacted positively by rising levels of real domestic economic activity and trade openness. Second, there is an asymmetric impact of changes in financial development in the long run and short run on changes in CO emissions. Third, positive and negative changes in financial development Granger cause CO emissions in the short run. One policy implication of these findings is that strengthening the negative relationship between CO emissions and financial development could lessen the increase in CO emissions associated with rising levels of real domestic economic activity.

Keywords

CO2 Financial development NARDL

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MeSH Term

Carbon Dioxide
Economic Development
Jamaica
Policy

Chemicals

Carbon Dioxide
Journal Article

Word Cloud

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