On the asymmetric relationship between stock market development, energy efficiency and environmental quality: A nonlinear analysis
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15 mars 2021
- handle: 10670/1.2lbpke
- halshs: halshs-03169689
info:eu-repo/semantics/OpenAccess
Mots-clés
Stock market development Carbon emissions Energy efficiency Asymmetric relationship NARDL model JEL Classification: Q 43 G28 E44 F64 Q - Agricultural and Natural Resource Economics • Environmental and Ecological Economics/Q.Q4 - Energy/Q.Q4.Q43 - Energy and the Macroeconomy G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G28 - Government Policy and Regulation E - Macroeconomics and Monetary Economics/E.E4 - Money and Interest Rates/E.E4.E44 - Financial Markets and the Macroeconomy F - International Economics/F.F6 - Economic Impacts of Globalization/F.F6.F64 - Environment -fin] -fin]/Computational Finance [q-fin.CP] -fin]/Pricing of Securities [q-fin.PR] -fin]/Statistical Finance [q-fin.ST]Sujets proches
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Mayssa Mhadhbi et al., « On the asymmetric relationship between stock market development, energy efficiency and environmental quality: A nonlinear analysis », HAL-SHS : économie et finance, ID : 10670/1.2lbpke
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Résumé
It has been widely documented in the literature that financial development drives up the impact of CO2 emissions through increases in real economic activities and the consumption of polluting fossil fuel energy. However, when dealing with stock market development, such upward effects on economic growth, energy efficiency, and carbon emissions seems to give away to a positive impact especially in emerging markets. This paper contributes to this debate by exploring both the symmetric and asymmetric responses of CO2 emission to changes in stock market development indicators. In particular, using both the panel linear and nonlinear ARDL, our results demonstrate the asymmetric effects of stock market development indicators on carbon emissions in the context of emerging markets. In particular, the long-run elasticities results suggest that positive and negative shocks on stock market indicator decreases environmental quality by increasing carbon emissions. Based on these empirical findings, this study offers some crucial policy implications.