Does financial development moderate the link between technological innovation and environmental indicators? An advanced panel analysis
Abstract This study analyzes the role of financial development (FD) on the impact of technological innovation (TI) on six environmental quality indicators for the 25 economies that are part of the Organization for Economic Cooperation and Development for the period from 2000 to 2019. We use a two-st...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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SpringerOpen
2023-09-01
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| Series: | Financial Innovation |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s40854-023-00513-2 |
| _version_ | 1797397809294475264 |
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| author | Hossein Ali Fakher Zahoor Ahmed |
| author_facet | Hossein Ali Fakher Zahoor Ahmed |
| author_sort | Hossein Ali Fakher |
| collection | DOAJ |
| description | Abstract This study analyzes the role of financial development (FD) on the impact of technological innovation (TI) on six environmental quality indicators for the 25 economies that are part of the Organization for Economic Cooperation and Development for the period from 2000 to 2019. We use a two-step dynamic generalized method of moments approach to understand this relationship. The results show that FD augments the positive effects of TI on four of the six environmental indicators, namely ecological footprint, adjusted net savings, pressure on nature, and environmental performance. However, no significant effects on environmental sustainability and environmental vulnerability indices were found. When considering all of the environmental quality indicators, TI appears to enhance environmental quality. We find evidence to support the existence of the environmental Kuznets curve in the context of each environmental indicator and economic growth. Moreover, FD and energy consumption appear to accelerate environmental degradation. Based on these results, FD should be viewed as an important parameter in designing policies for innovation to achieve the goal of net-zero carbon emissions. |
| first_indexed | 2024-03-09T01:15:33Z |
| format | Article |
| id | doaj.art-505af96627504c1cb3af2778f22a78ca |
| institution | Directory Open Access Journal |
| issn | 2199-4730 |
| language | English |
| last_indexed | 2024-03-09T01:15:33Z |
| publishDate | 2023-09-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Financial Innovation |
| spelling | doaj.art-505af96627504c1cb3af2778f22a78ca2023-12-10T12:28:51ZengSpringerOpenFinancial Innovation2199-47302023-09-019111910.1186/s40854-023-00513-2Does financial development moderate the link between technological innovation and environmental indicators? An advanced panel analysisHossein Ali Fakher0Zahoor Ahmed1Department of Business Management, Ayandegan Institute of Higher EducationDepartment of Business Admistration, Faculty of Economics, Administrative and Social Sciences, Bahçeşehir Cyprus UniversityAbstract This study analyzes the role of financial development (FD) on the impact of technological innovation (TI) on six environmental quality indicators for the 25 economies that are part of the Organization for Economic Cooperation and Development for the period from 2000 to 2019. We use a two-step dynamic generalized method of moments approach to understand this relationship. The results show that FD augments the positive effects of TI on four of the six environmental indicators, namely ecological footprint, adjusted net savings, pressure on nature, and environmental performance. However, no significant effects on environmental sustainability and environmental vulnerability indices were found. When considering all of the environmental quality indicators, TI appears to enhance environmental quality. We find evidence to support the existence of the environmental Kuznets curve in the context of each environmental indicator and economic growth. Moreover, FD and energy consumption appear to accelerate environmental degradation. Based on these results, FD should be viewed as an important parameter in designing policies for innovation to achieve the goal of net-zero carbon emissions.https://doi.org/10.1186/s40854-023-00513-2Technological innovationFinancial developmentTwo-step dynamic Sys-GMM estimatorEnvironmental quality indicatorsEnvironmental sustainability |
| spellingShingle | Hossein Ali Fakher Zahoor Ahmed Does financial development moderate the link between technological innovation and environmental indicators? An advanced panel analysis Financial Innovation Technological innovation Financial development Two-step dynamic Sys-GMM estimator Environmental quality indicators Environmental sustainability |
| title | Does financial development moderate the link between technological innovation and environmental indicators? An advanced panel analysis |
| title_full | Does financial development moderate the link between technological innovation and environmental indicators? An advanced panel analysis |
| title_fullStr | Does financial development moderate the link between technological innovation and environmental indicators? An advanced panel analysis |
| title_full_unstemmed | Does financial development moderate the link between technological innovation and environmental indicators? An advanced panel analysis |
| title_short | Does financial development moderate the link between technological innovation and environmental indicators? An advanced panel analysis |
| title_sort | does financial development moderate the link between technological innovation and environmental indicators an advanced panel analysis |
| topic | Technological innovation Financial development Two-step dynamic Sys-GMM estimator Environmental quality indicators Environmental sustainability |
| url | https://doi.org/10.1186/s40854-023-00513-2 |
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