Satar Bakhsh, Wei Zhang, Kishwar Ali, Muhammad Anas
{"title":"Can digital financial inclusion facilitate renewable energy consumption? Evidence from nonlinear analysis","authors":"Satar Bakhsh, Wei Zhang, Kishwar Ali, Muhammad Anas","doi":"10.1177/0958305x231204029","DOIUrl":null,"url":null,"abstract":"The Paris climate agreement aims to achieve carbon neutrality by reducing carbon emissions all over the world. This can be accomplished by encouraging all stakeholders to switch to more carbon-free production methods, such as renewables, which cannot be achieved without high-level subsidies and financial aid. Therefore, the financial sector is inextricably linked to the renewable energy transition. The entire world is watching India, the world's second-largest importer of fossil fuels and the world's fourth-largest emitter of greenhouse gases. In this context, this work employs a financial development index in three dimensions: the overall financial development, the market-based financial development, and the bank-based financial development. We used the asymmetric nonlinear autoregressive distributed lags econometric model on data from 1980Q1 to 2020Q4 to investigate the effect of financial development on renewable energy consumption (REC) in India. As control variables, the model included real gross domestic product (GDP), trade openness, and oil prices. The empirical evidence shows that negative changes in overall and market-based financial developments (shocks) have a significant impact on REC. Changes in the development of bank-based finance have no immediate impact on REC. In the instantaneous and one-lagged periods, the later effect is both positive and negative. The asymmetric long-run effect of negative and positive changes (shocks) in all three dimensions of financial development has a significant impact on REC. As control variables, the model included real GDP, trade openness, and oil prices. Our empirical findings have significant policy implications.","PeriodicalId":11652,"journal":{"name":"Energy & Environment","volume":"7 1","pages":"0"},"PeriodicalIF":4.0000,"publicationDate":"2023-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Energy & Environment","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1177/0958305x231204029","RegionNum":4,"RegionCategory":"环境科学与生态学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ENVIRONMENTAL STUDIES","Score":null,"Total":0}
引用次数: 1
Abstract
The Paris climate agreement aims to achieve carbon neutrality by reducing carbon emissions all over the world. This can be accomplished by encouraging all stakeholders to switch to more carbon-free production methods, such as renewables, which cannot be achieved without high-level subsidies and financial aid. Therefore, the financial sector is inextricably linked to the renewable energy transition. The entire world is watching India, the world's second-largest importer of fossil fuels and the world's fourth-largest emitter of greenhouse gases. In this context, this work employs a financial development index in three dimensions: the overall financial development, the market-based financial development, and the bank-based financial development. We used the asymmetric nonlinear autoregressive distributed lags econometric model on data from 1980Q1 to 2020Q4 to investigate the effect of financial development on renewable energy consumption (REC) in India. As control variables, the model included real gross domestic product (GDP), trade openness, and oil prices. The empirical evidence shows that negative changes in overall and market-based financial developments (shocks) have a significant impact on REC. Changes in the development of bank-based finance have no immediate impact on REC. In the instantaneous and one-lagged periods, the later effect is both positive and negative. The asymmetric long-run effect of negative and positive changes (shocks) in all three dimensions of financial development has a significant impact on REC. As control variables, the model included real GDP, trade openness, and oil prices. Our empirical findings have significant policy implications.
期刊介绍:
Energy & Environment is an interdisciplinary journal inviting energy policy analysts, natural scientists and engineers, as well as lawyers and economists to contribute to mutual understanding and learning, believing that better communication between experts will enhance the quality of policy, advance social well-being and help to reduce conflict. The journal encourages dialogue between the social sciences as energy demand and supply are observed and analysed with reference to politics of policy-making and implementation. The rapidly evolving social and environmental impacts of energy supply, transport, production and use at all levels require contribution from many disciplines if policy is to be effective. In particular E & E invite contributions from the study of policy delivery, ultimately more important than policy formation. The geopolitics of energy are also important, as are the impacts of environmental regulations and advancing technologies on national and local politics, and even global energy politics. Energy & Environment is a forum for constructive, professional information sharing, as well as debate across disciplines and professions, including the financial sector. Mathematical articles are outside the scope of Energy & Environment. The broader policy implications of submitted research should be addressed and environmental implications, not just emission quantities, be discussed with reference to scientific assumptions. This applies especially to technical papers based on arguments suggested by other disciplines, funding bodies or directly by policy-makers.