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Impact of Energy Use Segregation on Carbon Emissions: The Role of FDI in Net Importing and Net Exporting Countries Read chapter Read first chapter

2020 | OriginalPaper | Chapter

14. How Does Environmental Degradation React to Stock Market Development in Developing Countries?

Authors : Mert Topcu, Can Tansel Tugcu, Oguz Ocal

Published in: Econometrics of Green Energy Handbook

Publisher: Springer International Publishing

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Abstract

As capital markets develop, the issue of whether this development improves the environmental quality rises very rapidly. Although not very documented, the literature has reached a consensus on the positive role of stock market development on carbon emissions in developing countries. Previous studies, however, do not include great number of countries to reach a broad consensus and assume that the effect does not change over time. Given these motivations, this study examines the impact of stock market development on carbon emissions in a panel of 60 developing countries over the period 1990–2014. Findings reveal that stock market development decreases environmental degradation in the short-run, whereas further development leads to environmental degradation in the long-run. Policy implications depending on these results are also discussed.

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previous chapter Renewable Energy—Economic Growth Nexus: Addressing Potential Issues of Endogeneity and the Precision of the Long-Run Relationship
next chapter Determination of Asymmetries and Market Integration in the Electricity and Crude Oil Markets
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Metadata
Title
How Does Environmental Degradation React to Stock Market Development in Developing Countries?
Authors
Mert Topcu
Can Tansel Tugcu
Oguz Ocal
Copyright Year
2020
Book
Econometrics of Green Energy Handbook

Print ISBN: 978-3-030-46846-0

Electronic ISBN: 978-3-030-46847-7

Copyright Year: 2020

DOI
https://doi.org/10.1007/978-3-030-46847-7_14