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Impact of Green Energy Production, Green Innovation, Financial Development on Environment Quality: A Role of Country Governance in Pakistan

Author

Listed:
  • Aamir Inam Bhutta

    (Lyallpur Business School, Government College University, Faisalabad, Pakistan,)

  • Muhammad Rizwan Ullah

    (Lyallpur Business School, Government College University, Faisalabad, Pakistan,)

  • Jahanzaib Sultan

    (Lyallpur Business school, Government College University, Faisalabad, Pakistan.)

  • Ahsan Riaz

    (Lyallpur Business school, Government College University, Faisalabad, Pakistan.)

  • Muhammad Fayyaz Sheikh

    (Lyallpur Business school, Government College University, Faisalabad, Pakistan.)

Abstract

The study aims to analyze the contributions of green innovation, green energy production, and financial development to environmental quality with the moderating role of country governance. The study collects data from a panel of five South Asian economies from 2000 to 2018. The paper includes CIPS, a second-generation unit root to test the data s stationarity, and the Westerlund co-integration to investigate the long-term relationship between determinants. The Fully Modified and Dynamic Ordinary Least Square is applied to estimate the long-run coefficient and test the hypothesized relationship between selected determinants. The study finds that green innovation and green energy production negatively (positively) contribute to environmental degradation (environment sustainability). Moreover, financial development has a substantial impact on environmental degradation and sustainability, as per the findings. The study further finds a significant role of country governance in the relationship between green innovation, green energy production, environmental degradation, and environmental sustainability. Furthermore, country governance is improving the link between financial development and environmental degradation, and long-term sustainability.

Suggested Citation

  • Aamir Inam Bhutta & Muhammad Rizwan Ullah & Jahanzaib Sultan & Ahsan Riaz & Muhammad Fayyaz Sheikh, 2022. "Impact of Green Energy Production, Green Innovation, Financial Development on Environment Quality: A Role of Country Governance in Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 316-326.
    • Handle: RePEc:eco:journ2:2022-01-39
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    2. Li, Xiangrong & Zhu, Shaoying & Li, Yanyong & Chang, Ronghua, 2022. "What is the asymmetric influence of natural resource rent and green innovation on the ecological sustainability of the ARCTIC region," Resources Policy, Elsevier, vol. 79(C).
    3. Ashraf Ud Din & Imran Ur Rahman & Alejandro Vega-Muñoz & Ehsan Elahi & Guido Salazar-Sepúlveda & Nicolás Contreras-Barraza & Rakan Radi Alhrahsheh, 2023. "How Sustainable Transportation Can Utilize Climate Change Technologies to Mitigate Climate Change," Sustainability, MDPI, vol. 15(12), pages 1-22, June.
    4. Nicoleta Mihaela Doran & Roxana Maria Bădîrcea & Marius Dalian Doran, 2022. "Financing the Agri-Environmental Policy: Consequences on the Economic Growth and Environmental Quality in Romania," IJERPH, MDPI, vol. 19(21), pages 1-15, October.
    5. Fayuan Wang & Rong Wang & Zhili He, 2022. "Exploring the Impact of “Double Cycle” and Industrial Upgrading on Sustainable High-Quality Economic Development: Application of Spatial and Mediation Models," Sustainability, MDPI, vol. 14(4), pages 1-17, February.

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    More about this item

    Keywords

    Green Innovation; Green Energy Production; Financial Development; Environment Degradation; Environment Sustainability; Country Governance;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment

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