Abstract
This study suggests an indirect effect of the financial markets on the environment and explores the transmission mechanisms through which financial market development affects carbon emissions in China. We identify three key mechanisms: i) sustainability, ii) production, and iii) consumption. Our results document that the sustainability mechanism helps mitigate emissions whereas the production mechanism triggers environmental degradation, and the impact of the latter is greater than the former in magnitude. However, once the negative externality of political corruption on financial market development is considered, the beneficial environmental effect dominates the degradation effect.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
