Sustainable Financial Development: Does It Matter for Greenhouse Gas Emissions?
Abstract
:1. Introduction
2. Literature Review
3. Variable and Model
3.1. Variable Description
3.1.1. Dependant Variable
3.1.2. Independent Variable
3.1.3. Mediator Variable
3.1.4. Control Variable
3.2. Model
4. Findings and Discussion
4.1. Sample Description
4.2. Basic Statistical Analysis
4.3. Examining the Effect of Sustainable Financial Development on Greenhouse Emissions
4.4. Examining the Effects of Heterogeneous Technological Progress on Greenhouse Gas Emissions
4.5. Examining the Effects of Sustainable Financial Development on Heterogeneous Technological Progress
4.6. Robustness Test on the Effects of Sustainable Financial Development on Greenhouse Gas Emissions
4.7. Examining the Heterogeneous Effects of Sustainable Financial Development on Greenhouse Gas Emissions in Terms of Three Sub-Samples
5. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Variable | Abbreviation | Definition | Source |
---|---|---|---|
Dependent variable | |||
Greenhouse gas emission | gge | greenhouse gas emissions in kilograms per capita in log | World Bank Open Data |
Sustainable financial development independent variable | |||
Domestic credit to private sector by banks | fd1 | Proportion of domestic credit to private sector bybanks to GDP | World Development Indicators |
Financial markets | fd2 | Financial Markets Index in log | IMF database |
Financial institutions | fd3 | Financial Institutions Index in log | IMF database |
Mediator variable | |||
Generalized technological progress | tech1 | Number of patents actually authorized in log | World Bank Open Data |
Environmental technological progress | tech2 | Total energy consumption per unit of GDP | World Bank Open Data |
Technological choice progress | tech3 | Capital labor ratio | World Bank Open Data |
Foreign direct investment technological spillover | tech4 | Ratio of actually utilized foreign direct investment to GDP | World Bank Open Data |
Control variable | |||
Industrial structure | is | Industry share as percentage of GDP | World Bank Open Data |
Economy developing level | edl | GDP per capita in log | World Bank Open Data |
Human capital | hc | Average years of education of employees in log | World Bank Open Data |
Trade openness | to | ratio of total import and export to GDP | World Bank Open Data |
Infrastructure level | il | Total mileage of highway and railway per square kilometer in log | World Bank Open Data |
Urbanization | ur | Ratio of urban population to total population | World Bank Open Data |
Institutional quality | iq | Economic freedom index in log | Freedom House Report; knoema |
Variable | Observation | Mean | Maximum | Minimum | Standard Deviation |
---|---|---|---|---|---|
gge | 3240 | 0.829 | 1.626 | 0.485 | 0.281 |
fd1 | 3240 | 0.762 | 2.917 | 0.103 | 0.348 |
fd2 | 3240 | 0.526 | 1.000 | 0.012 | 0.225 |
fd3 | 3240 | 0.653 | 1.000 | 0.191 | 0.164 |
tech1 | 3240 | 2.417 | 26.156 | 0.018 | 3.692 |
tech2 | 3240 | 1.278 | 5.421 | 0.235 | 0.768 |
tech3 | 3240 | 10.485 | 14.396 | 7.718 | 1.212 |
tech4 | 3240 | 0.502 | 6.337 | 0.042 | 0.681 |
is | 3240 | 0.402 | 0.613 | 0.132 | 0.079 |
edl | 3240 | 1.431 | 5.236 | 0.383 | 0.798 |
hc | 3240 | 0.956 | 1.129 | 0.790 | 0.091 |
to | 3240 | 0.374 | 0.279 | 0.051 | 0.407 |
il | 3240 | 0.872 | 15.627 | 0.069 | 1.652 |
ur | 3240 | 0.332 | 1.000 | 0.284 | 0.395 |
iq | 3240 | 1.112 | 1.889 | 1.447 | 0.383 |
Variable. | Financial Development Index 1 | Financial Development Index 2 | Financial Development Index 3 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
World (1) | High (2) | Middle (3) | Low (4) | World (5) | High (6) | Middle (7) | Low (8) | World (9) | High (10) | Middle (11) | Low (12) | |
fd1t−1 | 0.192 *** (6.278) | 0.107 *** (9.592) | −2.176 ** (−2.224) | 0.069 * (1.715) | ||||||||
fd12t−1 | −0.007 *** (−5.926) | −0.008 *** (−5.095) | −0.007 (−1.262) | −0.007 (−1.513) | ||||||||
fd2t−1 | 0.297 *** (7.412) | 0.238 *** (10.722) | −0.105 *** (−4.437) | 0.091 * (1.926) | ||||||||
fd22t−1 | −0.012 *** (−6.137) | −0.009 *** (−5.949) | −0.013 (−1.558) | −0.010 (−1.146) | ||||||||
fd3t−1 | 0.426 *** (6.947) | 0.433 *** (8.549) | −0.216 ** (−2.531) | 0.104 * (1.812) | ||||||||
fd32t−1 | −0.018 *** (−6.529) | −0.013 *** (−6.114) | −0.014 (−1.585) | −0.016 (−1.062) | ||||||||
cv | included | included | included | included | included | included | included | included | included | included | included | included |
c | 0.637 *** (6.211) | 0.186 *** (4.145) | 1.164 ** (2.118) | 0.109 * (1.598) | 1.672 *** (7.358) | 2.414 *** (5.932) | 1.253 *** (4.719) | 1.054 ** (2.218) | 0.491 *** (8.144) | 0.997 *** (5.423) | 1.121 ** (2.215) | 1.107 * (1.668) |
Country | yes | yes | yes | Yes | yes | yes | yes | yes | yes | yes | yes | Yes |
Year | yes | yes | yes | Yes | yes | yes | yes | yes | yes | yes | yes | Yes |
R2 | 0.674 | 0.729 | 0.697 | 0.581 | 0.743 | 0.712 | 0.655 | 0.614 | 0.658 | 0.623 | 0.583 | 0.517 |
F-test | 97.665 | 158.722 | 82.158 | 60.934 | 112.597 | 186.895 | 107.213 | 92.035 | 120.714 | 190.586 | 162.491 | 98.164 |
Obs | 3220 | 1380 | 1480 | 320 | 3220 | 1380 | 1480 | 320 | 3220 | 1380 | 1480 | 320 |
Variable | (13) | (14) | (15) | (16) |
---|---|---|---|---|
tech1t−1 | 0.168 *** (5.583) | |||
tech2t−1 | −0.269 *** (−6.747) | |||
tech3t−1 | −0.185 (−1.312) | |||
tech4t−1 | −0.108 (−1.049) | |||
cv | included | included | included | included |
c | 0.954 *** (3.943) | 0.868 *** (4.691) | 0.912 *** (4.374) | 0.977 *** (3.802) |
Country | yes | Yes | yes | yes |
Year | yes | Yes | yes | yes |
R2 | 0.542 | 0.597 | 0.538 | 0.615 |
F-test | 196.338 | 143.857 | 186.149 | 182.076 |
Obs | 3220 | 3220 | 3220 | 3220 |
Var | (17) tech1 | (18) tech2 | (19) tech3 | (20) tech4 | Var | (21) tech1 | (22) tech2 | (23) tech3 | (24) tech4 | Var | (25) tech1 | (26) tech2 | (27) tech3 | (28) tech4 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
fd1t−1 | 0.847 *** (4.138) | −0.647 *** (−2.667) | 0.373 *** (5.356) | −0.462 (−1.432) | fd2t−1 | 1.046 *** (5.817) | −1.021 *** (−5.168) | 0.960 *** (4.861) | −1.211 (−1.017) | fd3t−1 | 1.645 *** (4.414) | −1.434 *** (−4.593) | 1.219 *** (4.358) | −1.503 (−1.013) |
cv | included | included | included | included | Cv | included | included | included | included | cv | included | included | included | included |
c | 1.431 * (1.722) | 1.967 ** (2.068) | 2.454 * (1.617) | 1.629 ** (2.146) | C | 3.996 *** (6.782) | 2.812 *** (5.979) | 3.633 ** (2.112) | 3.801 ** (2.219) | c | 1.536 ** (2.017) | 1.738 *** (3.987) | 1.316 *** (4.021) | 1.883 *** (3.822) |
Coun | yes | yes | yes | yes | Coun | yes | yes | yes | yes | Coun | yes | yes | yes | yes |
Year | yes | yes | yes | yes | Year | yes | yes | yes | yes | Year | yes | yes | yes | yes |
R2 | 0.496 | 0.517 | 0.438 | 0.524 | R2 | 0.743 | 0.712 | 0.768 | 0.687 | R2 | 0.385 | 0.407 | 0.398 | 0.464 |
F-test | 76.223 | 81.045 | 71.162 | 86.904 | F-test | 192.415 | 216.373 | 180.852 | 187.034 | F-test | 102.981 | 132.615 | 98.344 | 99.547 |
Obs | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 |
Variable | Financial Development Index 1 | Financial Development Index 2 | Financial Development Index 3 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
(29) | (30) | (31) | (32) | (33) | (34) | (35) | (36) | (37) | (38) | (39) | (40) | |
fd1t−1 | 0.866 * (1.927) | 0.670 (1.261) | 1.191 *** (6.129) | 0.592 *** (7.257) | ||||||||
fd2t−1 | 0.929 * (1.867) | 0.889 (1.489) | 0.785 *** (3.611) | 0.713 *** (3.136) | ||||||||
fd3t−1 | 0.921 * (1.976) | 0.567 (1.406) | 1.061 *** (4.871) | 0.612 *** (4.246) | ||||||||
tech1t−1 | 0.098 *** (3.561) | 0.016 *** (5.763) | 0.013 *** (2.805) | |||||||||
tech2t−1 | 0.133 *** (6.827) | 0.109 ** (2.292) | 0.171 *** (8.652) | |||||||||
tech3t−1 | −0.186 (−1.527) | −0.148 (−1.084) | −0.181 (−1.174) | |||||||||
tech4t−1 | −0.178 (−1.487) | −0.154 (−1.377) | −0.114 (−1.358) | |||||||||
cv | included | included | included | Included | included | included | included | included | included | included | included | included |
c | 1.635 *** (3.499) | 1.823 *** (5.805) | 1.354 (4.055) | 1.858 *** (4.912) | 2.628 * (1.718) | 2.841 *** (3.508) | 1.262 (1.687) | 2.483 ** (6.675) | 1.702 * (4.828) | 1.706 * (6.512) | 2.635 *** (4.553) | 1.915 * (3.282) |
Country | yes | yes | yes | Yes | yes | yes | yes | yes | yes | yes | yes | yes |
Year | yes | yes | yes | Yes | yes | yes | yes | yes | yes | yes | yes | yes |
R2 | 0.493 | 0.466 | 0.447 | 0.482 | 0.622 | 0.694 | 0.655 | 0.631 | 0.377 | 0.428 | 0.419 | 0.511 |
F-test | 85.325 | 81.103 | 71.747 | 98.014 | 119.184 | 115.191 | 147.194 | 121.722 | 76.823 | 63.213 | 89.744 | 79.275 |
Obs | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 |
Variable | Financial Development Index 1 | Financial Development Index 2 | Financial Development Index 3 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
(41) | (42) | (43) | (44) | (45) | (46) | (47) | (48) | (49) | (50) | (51) | (52) | |
fd1t−1 | 0.105 ** (2.424) | 0.107 *** (3.214) | 0.112 *** (3.265) | 0.094 *** (3.961) | ||||||||
fd2t−1 | 0.125 *** (3.202) | 0.127 *** (2.672) | 0.122 *** (3.954) | 0.095 *** (3.337) | ||||||||
fd3t−1 | 0.091 * (1.855) | 0.089 ** (2.249) | 0.092 * (1.726) | 0.105 ** (2.357) | ||||||||
tech1t−1 | 0.182 (1.024) | 0.203 (1.166) | 0.049 (1.401) | |||||||||
tech2t−1 | 0.024 *** (3.994) | 0.228 * (1.914) | 0.119 ** (2.489) | |||||||||
tech3t−1 | −0.178 (−1.233) | −0.062 (−1.473) | −0.168 (−1.384) | |||||||||
tech4t−1 | 0.148 (1.521) | 0.183 (1.416) | 0.096 (1.154) | |||||||||
cv | included | included | included | included | included | included | included | included | included | included | included | included |
c | 0.588 *** (3.152) | 0.594 *** (2.952) | 0.641 ** (2.325) | 0.644 ** (2.486) | 0.286 * (1.821) | 0.886 * (1.704) | 0.436 ** (2.545) | 0.687 * (1.952) | 0.765 ** (2.325) | 0.617 ** (2.544) | 0.795 ** (2.001) | 0.536 ** (2.144) |
Country | yes | yes | yes | yes | yes | yes | yes | yes | yes | yes | yes | yes |
Year | yes | yes | yes | yes | yes | yes | yes | yes | yes | yes | yes | yes |
R2 | 0.377 | 0.485 | 0.442 | 0.488 | 0.698 | 0.357 | 0.334 | 0.699 | 0.517 | 0.704 | 0.621 | 0.695 |
F-test | 96.75 | 47.146 | 83.792 | 47.192 | 45.725 | 102.632 | 108.387 | 52.684 | 98.389 | 85.514 | 61.044 | 91.513 |
Obs | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 |
Variable | Financial Development Index 1 | Financial Development Index 2 | Financial Development Index 3 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
(53) | (54) | (55) | (56) | (57) | (58) | (59) | (60) | (61) | (62) | (63) | (64) | |
fd1t−1 | −0.169 *** (−4.585) | −0.211 *** (−6.746) | −0.234 *** (−4.195) | −0.148 *** (−4.731) | ||||||||
fd2t−1 | −0.197 *** (−3.971) | −0.221 *** (−2.988) | −0.167 *** (−4.107) | −0.172 *** (−4.345) | ||||||||
fd3t−1 | −0.193 *** (−6.255) | −0.239 *** (−4.638) | −0.247 *** (−3.471) | −0.235 *** (−5.038) | ||||||||
tech1t−1 | 0.005 *** (5.381) | 0.016 *** (4.769) | 0.061 ** (2.312) | |||||||||
tech2t−1 | 0.011 *** (3.567) | 0.013 *** (3.131) | 0.031 *** (3.973) | |||||||||
tech3t−1 | −0.009 *** (−4.617) | −0.019 *** (−4.461) | −0.017 *** (−5.081) | |||||||||
tech4t−1 | 0.012 (1.364) | 0.022 (1.441) | 0.035 (1.268) | |||||||||
cv | included | included | included | included | included | included | included | included | included | included | included | included |
c | 1.011 * (1.683) | 0.822 *** (3.138) | 1.027 * (1.855) | 0.795 *** (2.919) | 0.738 ** (2.245) | 0.815 *** (3.002) | 1.072 * (1.793) | 0.776 ** (2.064) | 0.791 *** (2.658) | 0.813 * (1.702) | 1.114 * (1.716) | 1.008 ** (2.358) |
Country | yes | yes | Yes | yes | yes | yes | yes | yes | yes | yes | yes | yes |
Year | yes | yes | Yes | yes | yes | yes | yes | yes | yes | yes | yes | yes |
R2 | 0.682 | 0.555 | 0.494 | 0.593 | 0.375 | 0.547 | 0.482 | 0.644 | 0.714 | 0.422 | 0.334 | 0.692 |
F-test | 45.154 | 30.904 | 64.963 | 60.266 | 67.211 | 45.729 | 63.247 | 36.812 | 53.189 | 40.043 | 31.265 | 38.669 |
Obs | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 |
Variable | Financial Development Index 1 | Financial Development Index 2 | Financial Development Index 3 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
(65) | (66) | (67) | (68) | (69) | (70) | (71) | (72) | (73) | (74) | (75) | (76) | |
fd1t−1 | 0.211 *** (3.792) | 0.071 (1.366) | 0.221 *** (6.019) | 0.177 *** (3.712) | ||||||||
fd2t−1 | 0.212 *** (5.179) | 0.078 (1.283) | 0.169 *** (3.008) | 0.217 *** (3.219) | ||||||||
fd3t−1 | 0.189 *** (5.395) | 0.045 (3.806) | 0.112 *** (4.325) | 0.221 *** (4.368) | ||||||||
tech1t−1 | 0.073 *** (2.743) | 0.088 ** (2.191) | 0.077 * (1.801) | |||||||||
tech2t−1 | 0.141 *** (2.798) | 0.107 *** (4.537) | 0.139 *** (1.131) | |||||||||
tech3t−1 | 0.105 *** (4.085) | 0.092 *** (3.611) | 0.083 *** (5.126) | |||||||||
tech4t−1 | −0.136 (−1.164) | −0.121 (−1.539) | −0.074 (−1.161) | |||||||||
cv | included | included | included | included | included | included | included | included | included | included | included | included |
c | 0.337 ** (2.108) | 0.745 *** (3.196) | 0.364 ** (2.167) | 0.266 ** (2.283) | 1.062 *** (3.367) | 1.138 (1.472) | 0.442 *** (3.072) | 0.252 *** (2.653) | 0.505 *** (3.882) | 1.045 (2.222) | 0.931 * (1.614) | 0.359 *** (3.398) |
Country | yes | yes | yes | yes | yes | yes | yes | yes | yes | yes | yes | yes |
Year | yes | yes | yes | yes | yes | yes | yes | yes | yes | yes | yes | yes |
R2 | 0.687 | 0.579 | 0.688 | 0.515 | 0.371 | 0.313 | 0.376 | 0.606 | 0.701 | 0.623 | 0.404 | 0.638 |
F-test | 38.634 | 25.514 | 36.014 | 35.796 | 30.546 | 27.904 | 42.677 | 32.974 | 33.416 | 28.632 | 34.196 | 26.456 |
Obs | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 | 3220 |
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He, Y.; Gao, X.; Wang, Y. Sustainable Financial Development: Does It Matter for Greenhouse Gas Emissions? Sustainability 2022, 14, 5064. https://doi.org/10.3390/su14095064
He Y, Gao X, Wang Y. Sustainable Financial Development: Does It Matter for Greenhouse Gas Emissions? Sustainability. 2022; 14(9):5064. https://doi.org/10.3390/su14095064
Chicago/Turabian StyleHe, Yuang, Xiaodan Gao, and Yinhui Wang. 2022. "Sustainable Financial Development: Does It Matter for Greenhouse Gas Emissions?" Sustainability 14, no. 9: 5064. https://doi.org/10.3390/su14095064