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Exploring the Relationship between Islamic Financial Development, Energy Consumption, and Environmental Quality

Author

Listed:
  • Muhamad Abduh

    (UBD School of Business and Economics, University of Brunei Darussalam, Brunei Darussalam)

  • Witrie Annisa Buys

    (Sultan Hassanal Bolkiah Institute of Education, University of Brunei Darussalam, Brunei Darussalam)

  • Sumayyah Abdul Aziz

    (UBD School of Business and Economics, University of Brunei Darussalam, Brunei Darussalam)

Abstract

The relationship between financial development, energy consumption and the environment has been a popular topic in the last three decades. However, a minimal number of studies have been done within the Islamic finance framework despite its fifty years of establishment. This study aims to fill that gap by exploring the impact of Islamic financial development on energy consumption and environmental quality. Total financing and financial access are the two variables to represent Islamic financial advancement while millions tonnes of oil equivalent and CO2 emission as the proxy for energy consumption and environmental quality respectively. Focusing on six world top Islamic finance countries from 2013 to 2018, the findings show that Islamic financial development contributes significantly to the increase in energy consumption and the degradation of environmental quality.

Suggested Citation

  • Muhamad Abduh & Witrie Annisa Buys & Sumayyah Abdul Aziz, 2022. "Exploring the Relationship between Islamic Financial Development, Energy Consumption, and Environmental Quality," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 426-430, March.
    • Handle: RePEc:eco:journ2:2022-02-47
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    References listed on IDEAS

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    Cited by:

    1. Titin Agustin Nengsih & Muhamad Abduh & Urwawuska Ladini & Fadhlul mubarak, 2023. "The Impact of Islamic Financial Development, GDP, and Population on Environmental Quality in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 7-13, January.

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    More about this item

    Keywords

    Islamic finance; energy consumption; environmental quality;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P47 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Performance and Prospects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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