Is the load capacity curve a true phenomenon for OECD economies? Hidden behavior of financial institutions and markets in Environmental Sustainability.
Autor: | Özbay F; Department of Banking and Insurance, Isparta University of Applied Sciences, Yalvaç, Isparta, Turkey. Electronic address: ferhatozbay@isparta.edu.tr., Tekin B; Department of Business, Cankırı Karatekin University, Cankırı, Turkey. Electronic address: bilgehantn@outlook.com., Shah SAR; School of Economics & Finance, Xi'an Jiaotong University, Xian, 710061, China. Electronic address: Syedaaleraza56@gmail.com., Abbas N; School of Economics & Finance, Xi'an Jiaotong University, Xian, 710061, China. Electronic address: nailaabbaskml@gmail.com. |
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Jazyk: | angličtina |
Zdroj: | Journal of environmental management [J Environ Manage] 2024 Nov; Vol. 370, pp. 122812. Date of Electronic Publication: 2024 Oct 12. |
DOI: | 10.1016/j.jenvman.2024.122812 |
Abstrakt: | Over the last few decades, the globe has faced severe challenges in isolating entire nations from social, economic, and environmental issues. However, rising pollution levels have become the most debatable agenda. To resolve this, the world has introduced a few green initiatives, i.e., the Paris Agreement, the Kyoto Protocol and the Sustainable Development Goals (SDGs). Interestingly, to meet the desired threshold level, all stockholders demand massive finance to comply with such green initiatives. Thus, to highlight the importance of the financial sector, this study considers 26 OECD economies covering the period of 1982-2018. The leading importance of this study is utilizing the load capacity factor (LCF) as a decent proxy for sustainability. Similarly, the present empirical study utilizes advanced estimators to investigate the role of financial market index (FMI), financial institutions index (FII), renewable energy (REC) and income in environmental quality. The summarized results describe the positive role of REC in LCF in the specified nations. Conversely, FMI and FII are inverse-connected with the load capacity curve. Finally, the Load Capacity Curve (LCC) is validated for the selected economies. Interestingly, this study also suggests some imperative implications for boosting environmental sustainability. Such outcomes highlight the urgent need for legislative frameworks to accelerate the switch to renewable energy sources. Additionally, they emphasize the need for stricter oversight and control of financial institutions regarding their investments and policies for environmental preservation. Finally, the study raises the possibility that financial markets might obstruct ecological safeguards. Competing Interests: Declaration of competing interest It is submitted that there are no known conflicts of interest associated with this publication that could have influenced its outcome. (Copyright © 2024 Elsevier Ltd. All rights reserved.) |
Databáze: | MEDLINE |
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