Insights into the financial development and renewable energy nexus: A bibliometric analysis

Publisher Summary This chapter discusses the financial development and economic growth in underdeveloped countries. An observed characteristic of the process of economic development over time, in a market-oriented economy using the price mechanism to allocate resources, is an increase in the number and variety of financial institutions and a substantial rise in the proportion not only of money but also of the total of all financial assets relative to GNP and to tangible wealth. Typical statements indicate that the financial system somehow accommodates—or, to the extent that it malfunctions, it restricts—growth of real per capita output. Such an approach places emphasis on the demand side for financial services; as the economy grows it generates additional and new demands for these services, which bring about a supply response in the growth of the financial system. In this view, the lack of financial institutions in underdeveloped countries is simply an indication of the lack of demand for their services.

Pollution concern during globalization mode in financially resource-rich countries: Do financial development, natural resources, and renewable energy consumption matter?

With the ongoing expansion of global economic activities, environmental degradation has emerged as a progressively severe challenge. The Sustainable Development Goals are significantly impacted by this issue, making it essential to establish a symbiotic relationship between economic development and environmental protection. In this context, an investigation into the efforts of the OECD to promote ecological protection assumes a critical role, given its prominent position as a leading economic cooperation organization. Therefore, we examine the relationship between economic efficiency, financial development, renewable energy, industrialization, and ecological footprint in 36 OECD countries from 1995 to 2018. An empirical analysis employing the fully modified Ordinary Least Square technique reveals an inverted U-shaped curve relationship between economic efficiency and ecological footprint, supporting the environmental Kuznets curve (EKC) hypothesis in OECD countries. Moreover, the research reveals that financial development and industrialization exacerbate environmental damage, while the advancement of renewable energy plays a pivotal role in controlling the ecological footprint and fostering environmental conservation. Furthermore, by introducing interaction terms, we find that financial development and renewable energy weaken the positive effect of economic efficiency on the ecological footprint, while industrialization reinforces it. Finally, the findings of the Dumitrescu-Hurlin panel causality analysis show that the causal relationship between all three variables, namely economic efficiency, financial development and renewable energy consumption, and ecological footprint is bidirectional. In contrast, the causal relationship between the degree of industrialization and ecological footprint is unidirectional. These empirical findings provide practical policy recommendations for fostering sustainable development in OECD countries and offers valuable insights and lessons that can inform the formulation of relevant policies in other countries and regions. Overall, this study not only innovatively enriches the theoretical content of the EKC hypothesis from the perspective of the relationship between economic efficiency and ecological footprint, but also has important practical guidance significance.

Does financial inclusion, renewable and non-renewable energy utilization accelerate ecological footprints and economic growth? Fresh evidence from 15 highest emitting countries

Environmental concern in the era of industrialization: Can financial development, renewable energy and natural resources alleviate some load?

Economic activities, technological innovation and diffusion, energy consumption and financial development have been significant in BRICS countries over the last three decades. Corresponding to it, BRICS have been facing substantial environmental deterioration. The growth of such factors needs a comprehensive analysis. Hence, this paper examines the impact of technological innovation and diffusion, renewable and non-renewable energy consumption and financial development on ecological footprint under the Kuznets framework in BRICS countries over the time from 1990 to 2018. To confirm the long- and short-run relationship, we apply the second-generation and heterogeneity panel techniques. Where, to measure the impact of technological innovation and diffusion, energy consumption and financial development and other control variable on ecological footprint we use Westerlund Co-integration and pooled mean group (PMG) model for this interest. The results reveal that technological diffusion and non-renewable energy consumption deteriorate environmental quality in the long run. In contrast, renewable energy and technological innovation improve environmental sustainability/quality significantly. Further, results also confirm the existence of the EKC hypothesis. The study suggests that the government should encourage technological innovation and renewable energy consumption to improve environmental quality and achieve the sustainable development goal (SDG).

Institutional quality, financial development, and natural resources primarily determine how economic representatives support their operational and production behaviors towards escalating the renewable energy share in the whole energy mix and protecting ecological quality. In this way, this paper is the first to investigate the influence of institutional quality, natural resources, financial development, and renewable energy on economic growth and the environment simultaneously in China from 1996 to 2020. The cointegration approaches verify the presence of a long-run association between the selected variables. The autoregressive distributed lag model outcomes reveal that institutional quality and renewable energy utilization greatly diminish ecological footprint. At the same time, other prospective indicators such as financial expansion and natural resources significantly enhance ecological footprint levels in the short- and long-run. Furthermore, institutional quality, financial expansion, renewable energy, and natural resources significantly trigger economic growth. Besides this, this study has revealed the unidirectional causal association from institutional quality and financial expansion to ecological footprint. In contrast, bidirectional causality occurs between renewable energy, natural resources, ecological footprint, and economic growth. The current research results offer some policy implications that will help to reduce the detrimental influence of environmental deprivation, without hindering the economic growth trajectory in the case of China.

The discussion is confined in scope to absolutely irreplaceable assets. Topics include peculiar problems of mineral wealth, free competition, maximum social value and state regulation, monopoly, value of a mine monopoly, retardation of production under monopoly, price effects from cumulated production, and the author's mathematically derived optimum solutions. (PCS)

The role of renewable energy and globalization on ecological footprint is investigated in the USA by controlling for the effects of financial development and real output using quarterly data from 1985:Q1 to 2014:Q4. We apply the minimum Lagrange multiplier unit root test, multiple structural break cointegration test, and autoregressive distributed lag (ARDL) estimation approach. The empirical evidence suggests that, in the long run, renewable energy and real output exert negative pressure on ecological footprint while financial development and globalization exert positive pressure on ecological footprint. The short-run results indicate that renewable energy, financial development, real output, and globalization are positively linked to ecological footprint. The vector error correction model Granger causality results, in the long run, divulge that ecological footprint, consumption of renewable energy, real output, and globalization Granger-cause financial development while ecological footprint, renewable energy, financial development, and globalization Granger-cause real output. The results also show that, in the short run, renewable energy and globalization cause ecological footprint and real output causes renewable energy, while renewable energy causes globalization. The finding also reveals that the causality between real output and globalization, as well as globalization and financial development, is bidirectional. Therefore, our findings provide insights for policymakers to consider consumption ofrenewable energyas a surest way to mitigate carbon dioxide emissions.

Environmental literature keeps expanding on the natural resources‐environmental sustainability conundrum. However, most studies examine this conundrum in different geographical locations other than resource‐rich Sub‐Saharan African (SSA) countries while also neglecting the criticality of issues like green innovations, financial development, and renewable energy. Besides, the likelihood of a nonlinear relationship has often been jettisoned in the framework. Thus, the resources‐sustainability nexus was examined in the SSA using robust econometric techniques, while underscoring the roles of green innovations, renewable energy, and financial development. Using the cross‐sectional augmented auto‐regressive distributed lag (CS‐ARDL), cross‐sectional augmented distributed lag (CS‐DL), and the common correlated effect mean group (CCEMG) approaches that conciliate with residual cross‐sectional dependence and heterogeneity amongst others, we discovered that (i) the natural resources‐sustainability nexus is nonlinear in SSA. (ii) unlike the environmental gains from green innovations and renewables in the SSA, natural resource harms their environmental sustainability (iii) the interaction between financial development and natural resources worsened the ecosystem of the countries (iv) the interaction between natural resources and the duo of green innovations and renewable energy enhances SSA's ecological quality (v) urbanization damage environmental sustainability by spurring ecological footprints. Furthermore, one‐way causality paths were observed from the trio of natural resources, financial development, and green innovations to ecological footprints. But renewable energy and urbanization had a feedback causal relationship with ecological footprints. The findings are robust to CO2 emissions as an alternative environmental quality measure. Policy implications to foster SDGs‐related pollution mitigation agenda were thereafter extensively discussed for the SSA.

Despite the increased attention given to the relationship between institutional quality and economic growth, there are limited studies that have taken a comprehensive approach to explore this relationship. Hence, this study aims to comprehensively investigate the field of research on institutional quality and economic growth from 2000 to 2023 by employing a bibliometric analysis of 855 publications from the Scopus database. This study emphasises prominent countries, authors, sources, and journal articles, as well as research topics in the field. The results revealed that China, Pakistan and the United States are the top three most prolific countries in institutional quality and economic growth research. Law, S.H., Khan, H., and Sohag, K. are the top three productive authors in terms of their total publications. Environmental Science and Pollution Research is the most published and cited journal. The journal article written by Glaeser et al. (2004) has received the most cited article. It has been found that several currently extensively researched areas, including financial development, human capital, trade openness, and renewable energy. The study also included a few recently studied keywords that should be further investigated, namely ecological footprint, environmental sustainability, technological innovation, financial inclusion, and sustainable development goals. The results of this study trace the trend and add to the academic discussion on the common knowledge of institutional quality and economic growth research.

This study focuses on the effect of financial development, natural resource rent, human development, and technological innovation on the ecological and carbon footprints of the G-10 countries between 1990 and 2022. This study also considers the impact of globalization, trade openness, urbanization, and renewable energy on environmental degradation. The study uses Kao and Westerlund DH cointegration tests, FMOLS and DOLS estimators, and panel Fisher and Hatemi-J asymmetric causality tests to provide reliable results. Long-run estimates confirm an inverted U-shaped linkage between financial development and ecological and carbon footprints. Natural resource rent and technological innovation increase ecological and carbon footprints, while human development decreases them. Furthermore, globalization, trade openness, and renewable energy contribute to environmental quality, while urbanization increases environmental degradation. The Fisher test findings reveal that financial development, natural resource rent, human development, and technological innovation have a causal link with the ecological and carbon footprint. The results of the Hatemi-J test show that the negative shocks observed in the ecological and carbon footprint are affected by both negative and positive shocks in financial development, natural resource rent, and technological innovation. Moreover, positive and negative shocks in human development are the main drivers of negative shocks in the carbon footprint, while positive shocks in human development lead to negative shocks in the ecological footprint.

What abates ecological footprint in BRICS-T region? Exploring the influence of renewable energy, non-renewable energy, agriculture, forest area and financial development

This research conducts a comprehensive analysis of the intricate relationship between renewable energy and the sustainable development goals (SDGs). Employing diverse methodologies including latent dirichlet allocation (LDA) topic modeling, bibliometrics, citation analysis, and regression modeling, the study explores the evolving landscape of renewable energy research and its implications for SDGs. The analysis identifies a pronounced scholarly interest in renewable energy, reflected in the escalating publication volumes and citations across environmental sciences, green technology, and energy studies. Through meticulous examination, it uncovers interconnected research themes; encompassing policy uncertainty, Environmental Kuznets Curve, and ecological footprint, elucidating the multifaceted impact of renewable energy on the SDGs. Geographical distributions underscore diverse regional focuses, emphasizing the need for nuanced, context‐specific approaches. Regression analysis highlights influential factors like carbon dioxide emissions and gross domestic product (GDP) growth, delineating their pivotal roles in shaping scholarly attention toward renewable energy research. Furthermore, the study delves into the economic, environmental, and social dimensions of renewable energy's influence. It reveals its contributions to employment generation, sustainable production, energy access, and infrastructure development while navigating challenges related to climate change mitigation and biodiversity conservation. This comprehensive investigation offers crucial insights into the complex interplay between renewable energy and the SDGs. It predicts future research directions and highlights the urgency for interdisciplinary collaboration, international cooperation, and policy innovations to harness renewable energy's transformative potential for global sustainable development.

The Nordic nations have yet to significantly contribute to achieving Sustainable Development Goals (SDG) 7 and 13. This predicament might be attributed to fundamental financialization concerns in these nations and renewable energy generation implementation issues. The Nordic nations are fighting to reduce CO2 emissions as a result of these two situations. Dealing with this problem may necessitate a policy shift, which represents the focus of this research. Utilizing data from 1980 to 2020, we analyze the heterogeneous impacts of financial development and renewable energy on CO2 emissions using advanced panel and time-series methodologies. The advantage of the wavelet tools (wavelet coherence, partial wavelet and multiple wavelet techniques) is that they help to capture policy initiatives at different frequencies, i.e., short, medium and long-term. Our empirical outcomes from the CS-ARDL show that both financial development and renewable energy decrease CO2 emissions in the short and long term. Furthermore, the outcomes of the wavelet coherence show negative co-movement between CO2 and renewable energy in each Nordic nation except for Iceland with renewable energy driving CO2 in all frequencies. Additionally, financial development enhances the ‘CO2 emissions-renewable energy consumption’ association, but in the short term, it has no stimulating effect. These findings lead to the recommendation of an SDG-oriented policy framework. While this policy agenda is designed to achieve SDGs 7 and 13, it may also be applied to other nations. The study recommends that the Nordic countries implement measures to boost renewable energy supply through enhanced renewable energy technologies. Abbreviations: ASEAN: Association of Southeast Asian Nations; BRICS: Brazil, Russia, India, China and South Africa; CO2 : Carbon Emissions; CS-ARDL: Cross Sectional Autoregressive Distributed Lag Model; FD: Financial Development; PMG-ARDL: Pool Mean Group Autoregressive Lag Model; VAR: Vector Autoregressive; VECM: Vector Error Corrected Model; MINT: Mexico, Indonesia, Nigeria and Turkey; REC: Renewable Energy; SDG: Sustainable Development Goal; SD: Sustainable Development