IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2024-04-63.html

Interactive Effects of Carbon Dioxide Molecules, Demographic Changes on Financial Development in Sub-Saharan Africa

Author

Listed:
  • Charles O. Manasseh

    (Department of Banking and Finance, University of Nigeria, Enugu, Enugu State, Nigeria)

  • Chine Sp Logan

    (Department of Public Policy, Helms School of Government, Liberty University, Lynchburg, VA 24502, USA)

  • Ebele C. Igwemeka

    (Department of Banking and Finance, University of Nigeria, Enugu, Enugu State, Nigeria)

  • Faith C. Ekwunife

    (Department of Banking and Finance, Evangel University Akaeze, Ebonyi, Ebonyi State, Nigeria)

  • Chukwunonso F. Onoh

    (Department of Economics, National Open University of Nigeria, Nigeria)

  • Ogochukwu C. Okanya

    (Department of Banking and Finance, Institute of Management and Technology, Enugu, Enugu State, Nigeria)

  • Grace C. Eje

    (Department of Banking and Finance, Enugu State University of Science and Technology, Enugu, Nigeria)

  • Kingsley C. Ezechi

    (Department of Political Science and International Relations, Godfrey Okoye University, Enugu, Enugu State, Nigeria)

  • Wilfred O. Okonkwo

    (Department of Political Science and International Relations, Godfrey Okoye University, Enugu, Enugu State, Nigeria)

Abstract

This study examines the interaction impacts of carbon dioxide molecule emissions and population changes on financial development in Sub-Saharan Africa (SSA). The study used yearly time series data spanning the years 2000 to 2021. Following the PMG and FE results, the dynamic system GMM estimator was used in the study. The study found a significant inverse long-run relationship between carbon dioxide (CO2) emissions and financial development. Also, demographic changes have a significant positive impact on financial development. The interaction term findings demonstrate that changes in CO2 and GHG emissions have a negative and significant influence on the impact of the money supply ratio on financial development in SSA. The study suggests policies that support the adoption of financial aid or other incentives for initiatives that reduce CO2 emissions. Additionally, initiatives to support financial inclusion, uphold financial stability, encourage the expansion of infrastructure, advance social welfare, and ensure environmental sustainability should be made. Therefore, the SSA countries might benefit from their expanding populations to drive long-term economic expansion and improve living standards for their people.

Suggested Citation

  • Charles O. Manasseh & Chine Sp Logan & Ebele C. Igwemeka & Faith C. Ekwunife & Chukwunonso F. Onoh & Ogochukwu C. Okanya & Grace C. Eje & Kingsley C. Ezechi & Wilfred O. Okonkwo, 2024. "Interactive Effects of Carbon Dioxide Molecules, Demographic Changes on Financial Development in Sub-Saharan Africa," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 14(4), pages 672-683, July.
    • Handle: RePEc:eco:journ2:2024-04-63
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/14652/8080
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/14652
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    2. Pedroni, Peter, 2004. "Panel Cointegration: Asymptotic And Finite Sample Properties Of Pooled Time Series Tests With An Application To The Ppp Hypothesis," Econometric Theory, Cambridge University Press, vol. 20(3), pages 597-625, June.
    3. Guohua Liu & Mohammed Arshad Khan & Ahsanuddin Haider & Moin Uddin, 2022. "Financial Development and Environmental Degradation: Promoting Low-Carbon Competitiveness in E7 Economies’ Industries," IJERPH, MDPI, vol. 19(23), pages 1-16, December.
    4. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    5. Prosper Ebruvwiyo Edoja & Goodness C. Aye & Orefi Abu, 2016. "Dynamic relationship among CO2 emission, agricultural productivity and food security in Nigeria," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1204809-120, December.
    6. Ma, Yu & Zhang, Tingting & Qian, Wenyu & Wei, Danqi, 2022. "Financial development, demographic changes, and the growth of the non-hydro renewable energy Industry—An empirical test based on R&D and financing costs," Renewable Energy, Elsevier, vol. 185(C), pages 217-229.
    7. Gene M. Grossman & Alan B. Krueger, 1991. "Environmental Impacts of a North American Free Trade Agreement," NBER Working Papers 3914, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ronghui Xie & Shengjie Zhang, 2024. "Re†examining the impact of global foreign direct investment (FDI) inflows on haze pollution—considering the moderating mechanism of environmental regulation," Energy & Environment, , vol. 35(6), pages 3186-3209, September.
    2. Shahbaz, Muhammad & Nasreen, Samia & Ahmed, Khalid & Hammoudeh, Shawkat, 2017. "Trade openness–carbon emissions nexus: The importance of turning points of trade openness for country panels," Energy Economics, Elsevier, vol. 61(C), pages 221-232.
    3. Moataz Elshimy & Khadiga M. El-Aasar, 2020. "Carbon footprint, renewable energy, non-renewable energy, and livestock: testing the environmental Kuznets curve hypothesis for the Arab world," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(7), pages 6985-7012, October.
    4. Hong Chen & Wenzhe Hu, 2020. "Determining Whether Trade Can Affect Regional Environmental Sustainability from the Perspective of Environmental Pollution," Sustainability, MDPI, vol. 12(5), pages 1-15, February.
    5. Atif Jahanger & Muhammad Usman & Daniel Balsalobre‐Lorente, 2022. "Linking institutional quality to environmental sustainability," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1749-1765, December.
    6. Ramesh Chandra Das & Tonmoy Chatterjee & Enrico Ivaldi, 2022. "Nexus between Housing Price and Magnitude of Pollution: Evidence from the Panel of Some High- and-Low Polluting Cities of the World," Sustainability, MDPI, vol. 14(15), pages 1-18, July.
    7. Thian-Hee Yiew & Chin-Yu Lee & Lin-Sea Lau, 2021. "Economic growth in selected G20 countries: How do different pollution emissions matter?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 11451-11474, August.
    8. Alexandra-Anca Purcel, 2019. "Does Political Stability Hinder Pollution? Evidence From Developing States," Economic Research Guardian, Mutascu Publishing, vol. 9(2), pages 75-98, December.
    9. Myo Myo Htike & Anil Shrestha & Makoto Kakinaka, 2022. "Investigating whether the environmental Kuznets curve hypothesis holds for sectoral CO2 emissions: evidence from developed and developing countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 12712-12739, November.
    10. Pao, Hsiao-Tien & Tsai, Chung-Ming, 2011. "Multivariate Granger causality between CO2 emissions, energy consumption, FDI (foreign direct investment) and GDP (gross domestic product): Evidence from a panel of BRIC (Brazil, Russian Federation, India, and China) countries," Energy, Elsevier, vol. 36(1), pages 685-693.
    11. Kentaka Aruga, 2019. "Investigating the Energy-Environmental Kuznets Curve Hypothesis for the Asia-Pacific Region," Sustainability, MDPI, vol. 11(8), pages 1-12, April.
    12. Ebrahim Abbas Abdullah Abbas Amer & Zhang Xiuwu & Ebrahim Mohammed Ali Meyad & Mohammed Muneer Alareqi & SAMEER. M. H. BATHER & Amr Abdelwahed, 2025. "Nexus between renewable-disaggregated non-renewable energy consumption and economic growth in GCC countries: a Cobb-Douglas production function analysis," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-18, December.
    13. Abdelaziz Boukhelkhal, 2022. "Energy use, economic growth and CO2 emissions in Africa: does the environmental Kuznets curve hypothesis exist? New evidence from heterogeneous panel under cross-sectional dependence," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 13083-13110, November.
    14. Lotfi Mekhzoumi & Nadjoua Harnane & Abdellah Ayachi & Okba Abdellaoui, 2022. "The Environmental Kuznets Curve Hypothesis in Industrialized Countries: A Second Generation Econometric Approach," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 12(2), pages 96-103, March.
    15. Nizar Harrathi & Ahmed Almohaimeed, 2022. "Determinants of Carbon Dioxide Emissions: New Empirical Evidence from MENA Countries," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 12(1), pages 469-482.
    16. Simona-Vasilica Oprea & Irina Alexandra Georgescu & Adela Bâra, 2024. "Charting the BRIC countries’ connection of political stability, economic growth, demographics, renewables and CO2 emissions," Economic Change and Restructuring, Springer, vol. 57(5), pages 1-35, October.
    17. Gharehgozli, Orkideh, 2021. "An empirical comparison between a regression framework and the Synthetic Control Method," The Quarterly Review of Economics and Finance, Elsevier, vol. 81(C), pages 70-81.
    18. Saia, Artjom, 2023. "Digitalization and CO2 emissions: Dynamics under R&D and technology innovation regimes," Technology in Society, Elsevier, vol. 74(C).
    19. Pao, Hsiao-Tien & Tsai, Chung-Ming, 2010. "CO2 emissions, energy consumption and economic growth in BRIC countries," Energy Policy, Elsevier, vol. 38(12), pages 7850-7860, December.
    20. Dung Ly‐My & Thai‐Ha Le & Donghyun Park, 2024. "Foreign direct investment (FDI) and environmental quality: Is greenfield FDI greener than mergers and acquisitions FDI?," The World Economy, Wiley Blackwell, vol. 47(5), pages 1827-1850, May.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2024-04-63. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Monica Sinhat (email available below). General contact details of provider: https://econjournals.com/index.php/ijeep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.