Greening African economies: Investigating the role of financial development, green investments, and institutional quality

IF 9.9 1区环境科学与生态学 Q1 DEVELOPMENT STUDIES

Sustainable Development Pub Date : 2024-04-05 DOI:10.1002/sd.2958

Frank Antwi, Yusheng Kong, M. Donkor

{"title":"Greening African economies: Investigating the role of financial development, green investments, and institutional quality","authors":"Frank Antwi, Yusheng Kong, M. Donkor","doi":"10.1002/sd.2958","DOIUrl":null,"url":null,"abstract":"This study investigates the impact of financial development (FD) and green investments (GIs) on environmental pollution in Eastern and Southern African countries from 1990 to 2020. The research not only investigates the direct impacts of FD and green finance on environmental pollution but also examines the moderating role of institutional quality (IQ) and possible nonlinear effects of FD and green finance. Our analysis from the Panel autoregressive distributed lag (ARDL) long‐run PMG reveals a negative association between FD, green investment, and environmental pollution, indicating that a well‐developed financial sector supports sustainable initiatives, leading to improved environmental outcomes. IQ moderates this relationship, with strong governance enhancing the positive effects of FD and green finance on environmental preservation. Interestingly, the study identifies nonlinear impacts, suggesting that beyond a certain threshold, the contributions of FD and GIs to environmental preservation may diminish. Recognizing these nonlinearities and the role of IQ can inform more targeted policies for maximizing efforts toward environmental conservation in African economies.","PeriodicalId":48174,"journal":{"name":"Sustainable Development","volume":null,"pages":null},"PeriodicalIF":9.9000,"publicationDate":"2024-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Sustainable Development","FirstCategoryId":"93","ListUrlMain":"https://doi.org/10.1002/sd.2958","RegionNum":1,"RegionCategory":"环境科学与生态学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"DEVELOPMENT STUDIES","Score":null,"Total":0}

引用次数: 0

Abstract

This study investigates the impact of financial development (FD) and green investments (GIs) on environmental pollution in Eastern and Southern African countries from 1990 to 2020. The research not only investigates the direct impacts of FD and green finance on environmental pollution but also examines the moderating role of institutional quality (IQ) and possible nonlinear effects of FD and green finance. Our analysis from the Panel autoregressive distributed lag (ARDL) long‐run PMG reveals a negative association between FD, green investment, and environmental pollution, indicating that a well‐developed financial sector supports sustainable initiatives, leading to improved environmental outcomes. IQ moderates this relationship, with strong governance enhancing the positive effects of FD and green finance on environmental preservation. Interestingly, the study identifies nonlinear impacts, suggesting that beyond a certain threshold, the contributions of FD and GIs to environmental preservation may diminish. Recognizing these nonlinearities and the role of IQ can inform more targeted policies for maximizing efforts toward environmental conservation in African economies.

查看原文本刊更多论文

绿化非洲经济：调查金融发展、绿色投资和机构质量的作用

本研究调查了 1990 年至 2020 年金融发展（FD）和绿色投资（GIs）对东部和南部非洲国家环境污染的影响。研究不仅探讨了金融发展和绿色金融对环境污染的直接影响，还考察了制度质量（IQ）的调节作用以及金融发展和绿色金融可能产生的非线性影响。我们通过面板自回归分布滞后（ARDL）长期 PMG 分析发现，金融发展、绿色投资和环境污染之间存在负相关关系，这表明发达的金融部门支持可持续举措，从而改善环境结果。智商调节了这种关系，强有力的治理增强了金融发展和绿色金融对环境保护的积极影响。有趣的是，该研究发现了非线性影响，表明超过一定的临界值，金融发展和绿色金融对环境保护的贡献可能会减弱。认识到这些非线性因素和智商的作用，可以为制定更有针对性的政策提供信息，从而最大限度地促进非洲经济体的环境保护工作。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Sustainable Development Multiple-

CiteScore

17.30

自引率

11.20%

发文量

168

期刊介绍： Sustainable Development is a publication that takes an interdisciplinary approach to explore and propose strategies for achieving sustainable development. Our aim is to discuss and address the challenges associated with sustainable development and the Sustainable Development Goals. All submissions are subjected to a thorough review process to ensure that our readers receive valuable and original content of the highest caliber.