2.2.3. Other Perspectives

Dogan and Turkekul [14] analyze the relationship between financial development and carbon emissions in the USA from 1960 to 2010 with the ARDL approach and error correction-based Granger causality test, and conclude that although the financial development could affect the output, it has no effect on carbon emissions in the long-term. Similarly, based on the panel vector autoregressive (PVAR) model and the data of 24 countries in the MENA region from 1980 to 2015, Charfeddine and Kahia [27] find that financial development only slightly influences carbon emissions.

Paramati et al. [28] investigate the relationship between stock markets and carbon emissions in 23 developed and 20 emerging market countries from 1992 to 2011 with the Durbin–Hausman test and the common correlated effects (CCE) approach, and find that the influence of the stock market on carbon emissions differs between developed countries and emerging market countries. More specifically, the stock market indicators significantly negatively affect carbon emissions in developed countries but positively affects emerging market countries.
