The role of financial development and good governance in economic growth and environmental sustainability
New Zealand's environmental policies and political situation may have had an impact on all energy and non-energy factors that affect economic growth and CO2 emissions. Therefore, it is important to understand the impacts of these factors on NZ's CO2 emissions and economic growth, as the in...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Elsevier
2024-03-01
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| Series: | Energy Nexus |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2772427123000980 |
| _version_ | 1797249081454624768 |
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| author | Saeed Solaymani Oscar Montes |
| author_facet | Saeed Solaymani Oscar Montes |
| author_sort | Saeed Solaymani |
| collection | DOAJ |
| description | New Zealand's environmental policies and political situation may have had an impact on all energy and non-energy factors that affect economic growth and CO2 emissions. Therefore, it is important to understand the impacts of these factors on NZ's CO2 emissions and economic growth, as the interconnectedness of these factors provides policymakers with valuable insights. This study assesses the various influences of energy, financial, government, and other non-energy factors on both economic growth and carbon emissions in New Zealand. To estimate the impact variables, this study uses the autoregressive distributed lag method using annual data from 1990 to 2020. The results suggest that renewable and non-renewable energy consumption, foreign direct investment, and good governance stimulate economic growth. Natural resource rents, on the other hand, have a negative impact on economic growth due to their high cost to the economy. Furthermore, the use of renewable energy, financial development, and good governance significantly reduce CO2 emissions. The exchange rate also contributes to reducing carbon emissions due to its negative impact on economic growth and trade. Finally, fossil fuel consumption is the major contributor to higher CO2 emissions. Promoting clean foreign direct investment can boost economic growth and preserve environmental quality when supported by good governance and stable exchange rates. |
| first_indexed | 2024-03-08T17:05:56Z |
| format | Article |
| id | doaj.art-6c0eacc183a648c0984e3065b4de0e81 |
| institution | Directory Open Access Journal |
| issn | 2772-4271 |
| language | English |
| last_indexed | 2024-04-24T20:24:49Z |
| publishDate | 2024-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Energy Nexus |
| spelling | doaj.art-6c0eacc183a648c0984e3065b4de0e812024-03-22T05:41:09ZengElsevierEnergy Nexus2772-42712024-03-0113100268The role of financial development and good governance in economic growth and environmental sustainabilitySaeed Solaymani0Oscar Montes1Corresponding author: Saeed Solaymani, Scion (New Zealand Forest Research Institution), 3046 Rotorua, New Zealand; Scion (New Zealand Forest Research Institute), 3046 Rotorua, New ZealandScion (New Zealand Forest Research Institute), 3046 Rotorua, New ZealandNew Zealand's environmental policies and political situation may have had an impact on all energy and non-energy factors that affect economic growth and CO2 emissions. Therefore, it is important to understand the impacts of these factors on NZ's CO2 emissions and economic growth, as the interconnectedness of these factors provides policymakers with valuable insights. This study assesses the various influences of energy, financial, government, and other non-energy factors on both economic growth and carbon emissions in New Zealand. To estimate the impact variables, this study uses the autoregressive distributed lag method using annual data from 1990 to 2020. The results suggest that renewable and non-renewable energy consumption, foreign direct investment, and good governance stimulate economic growth. Natural resource rents, on the other hand, have a negative impact on economic growth due to their high cost to the economy. Furthermore, the use of renewable energy, financial development, and good governance significantly reduce CO2 emissions. The exchange rate also contributes to reducing carbon emissions due to its negative impact on economic growth and trade. Finally, fossil fuel consumption is the major contributor to higher CO2 emissions. Promoting clean foreign direct investment can boost economic growth and preserve environmental quality when supported by good governance and stable exchange rates.http://www.sciencedirect.com/science/article/pii/S2772427123000980Natural resource rentsRenewable energy consumptionGovernanceNon-renewable energy consumptionFinancial development |
| spellingShingle | Saeed Solaymani Oscar Montes The role of financial development and good governance in economic growth and environmental sustainability Energy Nexus Natural resource rents Renewable energy consumption Governance Non-renewable energy consumption Financial development |
| title | The role of financial development and good governance in economic growth and environmental sustainability |
| title_full | The role of financial development and good governance in economic growth and environmental sustainability |
| title_fullStr | The role of financial development and good governance in economic growth and environmental sustainability |
| title_full_unstemmed | The role of financial development and good governance in economic growth and environmental sustainability |
| title_short | The role of financial development and good governance in economic growth and environmental sustainability |
| title_sort | role of financial development and good governance in economic growth and environmental sustainability |
| topic | Natural resource rents Renewable energy consumption Governance Non-renewable energy consumption Financial development |
| url | http://www.sciencedirect.com/science/article/pii/S2772427123000980 |
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