| Title | Testing the asymmetric effect of financial stability towards carbon neutrality target: The case of Iceland and global comparison |
|---|---|
| ID_Doc | 33781 |
| Authors | Su, CW; Umar, M; Kirikkaleli, D; Awosusi, AA; Altuntas, M |
| Title | Testing the asymmetric effect of financial stability towards carbon neutrality target: The case of Iceland and global comparison |
| Year | 2023 |
| Published | |
| Abstract | In the last decade, the CO2 emissions in Iceland continues to relatively decrease; simultaneously, the country has been one of the highly financially stable country in the world. However, Iceland has higher per-capita CO2 emissions than several other European nations. As a result, the major question arising is, "what are the environmental effect of financial stability in Iceland?" This research scrutinizes the asymmetric effect of financial stability on CO2 emissions in Iceland. Using the quarterly dataset that span from 1995 to 2019. We employ the nonlinear ARDL and Fourier-based approach to uncover these asymmetric interconnections. The empirical findings of non-linear bound test and Fourier-based approach uncover the evident of cointegration between CO2 emissions and financial stability and other exogenous variables (such as income, energy use, and trade openness). The outcomes of the NARDL showed that a positive variation in financial stability mitigates CO2 emissions, whereas negative variation has a neutral impact on CO2 emissions. Furthermore, the result of other exogenous variables suggested that a positive change in energy use have an increased effects on CO2 emissions while a negative variation in energy use have mitigating effects on CO2 emissions. Also, Positive variation in income triggers CO2 emissions, but a negative variation in income has a neutral effect CO2 emission. Conversely, a negative variation in trade openness have increased effects on CO2 emissions, while a positive change in mitigating effects on CO2 emissions. The Fully modified ordinary least square and Dynamic ordinary least square estimators reveal that energy use and income level increase CO2 emissions, while trade openness and financial stability mitigate CO2 emissions. Policymakers in Iceland should focus their significant efforts on enhancing financial stability to encourage environmental innovation, investment, and technology by reducing the negative effect of financial stability. Furthermore, strengthening the trade liberalization policies toward the flow of green goods and services extends the environmental impacts of trade openness in Iceland. (c) 2023 International Association for Gondwana Research. Published by Elsevier B.V. All rights reserved. |
Similar Articles
| ID | Score | Article |
|---|---|---|
33069
|
Kirikkaleli, D; Ali, K Patents on environmental technologies and environmental degradation in a Scandinavian Country: Evidence from novel Fourier-based estimators(2023)Geological Journal, 58.0, 7 | |
| 30618
|
Zhou, DJ; Obobisa, ES; Ayamba, EC Achieving carbon neutrality goal in European countries: the role of green technology innovation, renewable energy, and financial development(2024) | |
| 30564
|
Ahmed, N; Areche, FO; Nieto, DDC; Borda, RFC; Gonzales, BC; Senkus, P; Sieminski, P; Skrzypek, A Nexus between Cyclical Innovation in Green Technologies and CO2 Emissions in Nordic Countries: Consent toward Environmental Sustainability(2022)Sustainability, 14, 18 | |
| 31524
|
Behera, P; Haldar, A; Sethi, N Achieving carbon neutrality target in the emerging economies: Role of renewable energy and green technology(2023) | |
| 31162
|
Fatima, N; Xuhua, H; Alnafisah, H; Akhtar, MR Synergy for climate actions in G7 countries: Unraveling the role of environmental policy stringency between technological innovation and CO2 emission interplay with DOLS, FMOLS and MMQR approaches(2024) | |
| 30470
|
Jian, X; Afshan, S Dynamic effect of green financing and green technology innovation on carbon neutrality in G10 countries: fresh insights from CS-ARDL approach(2022) | |
| 32446
|
Raza, A; Ali, M; Tursoy, T; Seraj, M; Habeeb, YO Evaluating the Scandinavian economy′s transition to a sustainable environment. Fresh evidence from newly developed CS-ARDL approach(2024) | |
| 33066
|
Bergougui, B Moving toward environmental mitigation in Algeria: Asymmetric impact of fossil fuel energy, renewable energy and technological innovation on CO2 emissions(2024) | |
| 16463
|
Alola, AA; Adebayo, TS The potency of resource efficiency and environmental technologies in carbon neutrality target for Finland(2023) | |
| 31681
|
Sun, YP; Razzaq, A; Sun, HP; Irfan, M The asymmetric influence of renewable energy and green innovation on carbon neutrality in China: Analysis from non-linear ARDL model(2022) |