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Financial development and energy consumption nexus in emerging economies

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  • Destek, Mehmet Akif

Abstract

This study aims to examine the relationship between financial development, energy price, real income and energy consumption in 17 emerging economies. In doing so, the financial development has been handled with three different dimensions (banking sector, stock market and bond market i.e) and the effects of each financial development dimension on energy consumption is investigated. For this purpose, the annual data of 1991-2015 is analyzed using with common correlated effect (CCE) estimator to take into account the cross-sectional dependence. The results show that bond market development is the most efficient dimension to reduce the energy consumption.

Suggested Citation

  • Destek, Mehmet Akif, 2017. "Financial development and energy consumption nexus in emerging economies," MPRA Paper 106956, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:106956
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    File URL: https://mpra.ub.uni-muenchen.de/106956/1/MPRA_paper_106956.pdf
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    2. Feyyaz Zeren & Süleyman Serdar Karaca, 2021. "The Impact Of Renewable And Non-Renewable Energy Consumption On Financial Development: Evidence From Emerging Countries," Journal of Research in Economics, Politics & Finance, Ersan ERSOY, vol. 6(1), pages 1-15.
    3. Ren, Yuning, 2024. "Unlocking the green potential through Fintech- natural resources, and economic development in resource-rich countries - An MMQR study," Resources Policy, Elsevier, vol. 90(C).
    4. Nusrat Farzana & Md Qamruzzaman & Yeasmin Islam & Piana Monsur Mindia, 2023. "Nexus between Personal Remittances, Financial Deepening, Urbanization, and Renewable Energy Consumption in Selected Southeast Asian Countries: Evidence from Linear and Nonlinear Assessment," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 270-287, November.

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    More about this item

    Keywords

    Energy consumption; financial development; energy price; cross-sectional dependence; emerging economies;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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