IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/v15y2025i2id18335.html

The The Impact of Financial Development on Environmental Pollution in Asian Countries: Examining the Role of Corruption Control

Author

Listed:
  • Dang, Anh

    (Ho Chi Minh University of Banking, Ho Chi Minh, Vietnam)

Abstract

This study aims to assess the role of corruption control in the impact of financial development on environmental pollution in Asian countries from 2002 to 2022. Using the GMM model, the research results indicate that financial development has an inverse effect on environmental pollution, meaning that financial development contributes to improving environmental quality in the Asian region. Furthermore, the study also uncovers a non-linear relationship between these two variables, suggesting that the impact of financial development on the environment may change across different stages of development. Another important highlight of the study is the role of corruption control. The study employs the DID method to show that in countries with effective corruption control systems and high levels of comprehensive financial development, the positive impact of finance on the environment is more pronounced. This indicates that establishing a transparent and efficient business environment is crucial for maximizing the benefits of financial development in protecting the environment.

Suggested Citation

  • Dang, Anh, 2025. "The The Impact of Financial Development on Environmental Pollution in Asian Countries: Examining the Role of Corruption Control," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 15(2), pages 330-337, February.
    • Handle: RePEc:eco:journ2:v:15:y:2025:i:2:id:18335
    DOI: 10.32479/ijeep.18335
    as

    Download full text from publisher

    File URL: https://econjournals.com/index.php/ijeep/article/download/18335/8643
    Download Restriction: no
    File URL: https://libkey.io/10.32479/ijeep.18335?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Marian R. Chertow, 2000. "The IPAT Equation and Its Variants," Journal of Industrial Ecology, Yale University, vol. 4(4), pages 13-29, October.
    2. Abid, Mehdi, 2016. "Impact of economic, financial, and institutional factors on CO2 emissions: Evidence from Sub-Saharan Africa economies," Utilities Policy, Elsevier, vol. 41(C), pages 85-94.
    3. Charfeddine, Lanouar & Kahia, Montassar, 2019. "Impact of renewable energy consumption and financial development on CO2 emissions and economic growth in the MENA region: A panel vector autoregressive (PVAR) analysis," Renewable Energy, Elsevier, vol. 139(C), pages 198-213.
    4. Abdouli, Mohamed & Hammami, Sami, 2017. "Investigating the causality links between environmental quality, foreign direct investment and economic growth in MENA countries," International Business Review, Elsevier, vol. 26(2), pages 264-278.
    5. Khuda Bakhsh & Sobia Rose & Muhammad Faisal Ali & Najid Ahmad & Muhammad Shahbaz, 2017. "Economic growth, CO2 emissions, renewable waste and FDI relation in Pakistan: New evidences from 3SLS," Post-Print hal-02000433, HAL.
    6. Abbasi, Kashif Raza & Shahbaz, Muhammad & Zhang, Jinjun & Irfan, Muhammad & Alvarado, Rafael, 2022. "Analyze the environmental sustainability factors of China: The role of fossil fuel energy and renewable energy," Renewable Energy, Elsevier, vol. 187(C), pages 390-402.
    7. Acheampong, Alex O., 2019. "Modelling for insight: Does financial development improve environmental quality?," Energy Economics, Elsevier, vol. 83(C), pages 156-179.
    8. Rabia Habib & Muhammad Aksar & Aleena Nadeem, 2024. "Investigating the Nexus of Control of Corruption, Green Finance, and Environmental Upgradation in Developed Economies," SAGE Open, , vol. 14(1), pages 21582440241, March.
    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. Shabana Parveen & Saleem Khan & Muhammad Abdul Kamal & Muhammad Ali Abbas & Aamir Aijaz Syed & Simon Grima, 2023. "The Influence of Industrial Output, Financial Development, and Renewable and Non-Renewable Energy on Environmental Degradation in Newly Industrialized Countries," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    2. Ramzan, Muhammad & Abbasi, Kashif Raza & Salman, Asma & Dagar, Vishal & Alvarado, Rafael & Kagzi, Muneza, 2023. "Towards the dream of go green: An empirical importance of green innovation and financial depth for environmental neutrality in world's top 10 greenest economies," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    3. Acheampong, Alex O. & Said, Rabie, 2024. "Financial inclusion and the global net-zero emissions agenda: Does governance quality matter?," Energy Economics, Elsevier, vol. 137(C).
    4. George S. Chen & Emmanuel Kwaku Manu & Dennis Asante, 2023. "Achieving environmental sustainability in Africa: The role of financial institutions development on carbon emissions," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(5), pages 3272-3290, October.
    5. Lin, Boqiang & Okoye, Jude O., 2023. "Towards renewable energy generation and low greenhouse gas emission in high-income countries: Performance of financial development and governance," Renewable Energy, Elsevier, vol. 215(C).
    6. Kai Dong & Shaonan Wang & Hengqiang Hu & Ningning Guan & Xiaolei Shi & Ye Song, 2024. "Financial development, carbon dioxide emissions, and sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(1), pages 348-366, February.
    7. repec:wei:journl:v:11:y:2021:i:1:p:144-155 is not listed on IDEAS
    8. Delphin K Espoir & Benjamin M Mudiangombe & Regret Sunge & Andrew A Alola, 2025. "Spatial analysis of carbon emission effect of financial development in Africa: The role of energy and socioeconomic factors," Energy & Environment, , vol. 36(4), pages 1579-1598, June.
    9. Muntazir Hussain & Ramiz Ur Rehman & Usman Bashir, 2024. "Environmental pollution, innovation, and financial development: an empirical investigation in selected industrialized countries using the panel ARDL approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 29217-29248, November.
    10. Justice Gyimah & Maclean Kwasi Fiati & Ujunwa Angela Nwigwe & Amenyawu Enyonam Vanessa & Xilong Yao, 2023. "Exploring the impact of renewable energy on economic growth and carbon emissions: Evidence from partial least squares structural equation modeling," PLOS ONE, Public Library of Science, vol. 18(12), pages 1-24, December.
    11. Le Thanh Ha, 2025. "Does Circularity Transformation Hinder Climate Risk? A New Insight from European Countries," Circular Economy and Sustainability, Springer, vol. 5(4), pages 2873-2899, August.
    12. Khurram Shehzad & Umer Zaman & Mahmood Ahmad & Emrah Kocak, 2023. "Governance, financial development, and environmental degradation: evidence from symmetric and asymmetric ARDL," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(12), pages 14643-14660, December.
    13. Xiangnan Zhai & Xue Yang & Darko B. Vukovic & Daria A. Dinets & Qiang Liu, 2025. "Carbon Emissions Trading Policy and Regional Energy Efficiency: A Quasi-Natural Experiment from China," Energies, MDPI, vol. 18(5), pages 1-20, February.
    14. Doğan, Buhari & Ghosh, Sudeshna & Hoang, Dung Phuong & Chu, Lan Khanh, 2022. "Are economic complexity and eco-innovation mutually exclusive to control energy demand and environmental quality in E7 and G7 countries?," Technology in Society, Elsevier, vol. 68(C).
    15. Naima Sadaoui & Lotfi Zabat & Habib Sekrafi & Mehdi Abid, 2024. "The moderating role of natural resources between governance and CO2 emissions: Evidence from MENA countries," Energy & Environment, , vol. 35(3), pages 1597-1615, May.
    16. Nuta, Alina Cristina & Abban, Olivier Joseph & Ayad, Hicham & Nuta, Florian Marcel, 2025. "Role of financial development and inclusivity in moderating the environmental effects of human development," Research in International Business and Finance, Elsevier, vol. 73(PA).
    17. Zouheyr Gheraia & Sawssan Saadaoui & Hanane Abdelli & Naeimah Fahad S. Almawishir & Naif Nadi Abaalkaif, 2023. "Does Financial Development Really Improve Environmental Quality in Al-Jouf Region? Empirical Contribution to the Environmental Politics," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 13(4), pages 194-201, July.
    18. Dhouha Dridi & Radhouane Hasni & Montassar KahiA, 2025. "Environmental Degradation and Financial Development Nexus in BRICS PLUS Countries: Do Financial Development Drivers Make a Difference?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 10222-10254, June.
    19. Dervis Kirikkaleli & Hasan Güngör & Tomiwa Sunday Adebayo, 2022. "Consumption‐based carbon emissions, renewable energy consumption, financial development and economic growth in Chile," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1123-1137, March.
    20. Umut Halaç & Fatma Dermenci & Seher Gören Yargı & Melis Gultekin, 2025. "Examining the Impact of Financial Development on Carbon Emissions: Insights from Emerging Economies," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 75(1), pages 156-169, July.
    21. Yongming Huang & Lian Xue & Zeeshan Khan, 2021. "What abates carbon emissions in China: Examining the impact of renewable energy and green investment," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(5), pages 823-834, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:v:15:y:2025:i:2:id:18335. 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.