Combining Economic Growth and Financial Development in Environment-Health Nexus

Han Dongping; Mansoor Ahmed Golo; Qamaruddin Mahar; Syed Safdar Ali Shah; Maysa Kadyrova

doi:10.18267/j.polek.1405

Combining Economic Growth and Financial Development in Environment-Health Nexus

Han Dongping
, Mansoor Ahmed Golo
, Qamaruddin Mahar^*
, Syed Safdar Ali Shah^*
, Maysa Kadyrova^*

^*Corresponding author for this work

School of Management, Harbin Institute of Technology
Isra University
Shanghai University

Research output: Contribution to journal › Article › peer-review

2 Scopus citations

Abstract

This study examines the impact of monetary developments on environmental quality and economic growth. We utilize ARDL/PMG models to study twelve climatically vulnerable countries from 1996 to 2018. We find that a 1% increase in real GDP and domestic credit harms the environment by 0.827% and 0.220%, respectively. However, savings improve environmental excellence by 0.373%. A 1% environmental degradation decreases human health by 0.317%; consequently, economic growth declines by 1.102%. Good governance emerges as a key solution, with a 1% improvement in public institutions mitigating the adverse impact of real GDP on the environment by 0.777%. Redirecting 1% of loans to eco-friendly projects improves the environment by 1.311%. Dumitrescu-Hurlin and PVAR Granger tests support these findings.

Original language	English
Pages (from-to)	730-757
Number of pages	28
Journal	Politicka Ekonomie
Volume	71
Issue number	6
DOIs	https://doi.org/10.18267/j.polek.1405
State	Published - 2023
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 3 Good Health and Well-being
SDG 13 Climate Action
SDG 16 Peace, Justice and Strong Institutions

Keywords

Environmental degradation index
PCA technique
good governance
high-risk countries
human health index
panel ARDL method

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10.18267/j.polek.1405

Cite this

@article{cb041e8645294ec08feba59ba744072a,

title = "Combining Economic Growth and Financial Development in Environment-Health Nexus",

abstract = "This study examines the impact of monetary developments on environmental quality and economic growth. We utilize ARDL/PMG models to study twelve climatically vulnerable countries from 1996 to 2018. We find that a 1\% increase in real GDP and domestic credit harms the environment by 0.827\% and 0.220\%, respectively. However, savings improve environmental excellence by 0.373\%. A 1\% environmental degradation decreases human health by 0.317\%; consequently, economic growth declines by 1.102\%. Good governance emerges as a key solution, with a 1\% improvement in public institutions mitigating the adverse impact of real GDP on the environment by 0.777\%. Redirecting 1\% of loans to eco-friendly projects improves the environment by 1.311\%. Dumitrescu-Hurlin and PVAR Granger tests support these findings.",

keywords = "Environmental degradation index, PCA technique, good governance, high-risk countries, human health index, panel ARDL method",

author = "Han Dongping and Golo, \{Mansoor Ahmed\} and Qamaruddin Mahar and Shah, \{Syed Safdar Ali\} and Maysa Kadyrova",

note = "Publisher Copyright: Copyright: {\textcopyright} 2023 by the author(s). Licensee Prague University of Economics and Business, Czech Republic. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution License (CC BY NC ND 4.0).",

year = "2023",

doi = "10.18267/j.polek.1405",

language = "英语",

volume = "71",

pages = "730--757",

journal = "Politicka Ekonomie",

issn = "0032-3233",

publisher = "Prague University of Economics and Business",

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}

TY - JOUR

T1 - Combining Economic Growth and Financial Development in Environment-Health Nexus

AU - Dongping, Han

AU - Golo, Mansoor Ahmed

AU - Mahar, Qamaruddin

AU - Shah, Syed Safdar Ali

AU - Kadyrova, Maysa

N1 - Publisher Copyright: Copyright: © 2023 by the author(s). Licensee Prague University of Economics and Business, Czech Republic. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution License (CC BY NC ND 4.0).

PY - 2023

Y1 - 2023

N2 - This study examines the impact of monetary developments on environmental quality and economic growth. We utilize ARDL/PMG models to study twelve climatically vulnerable countries from 1996 to 2018. We find that a 1% increase in real GDP and domestic credit harms the environment by 0.827% and 0.220%, respectively. However, savings improve environmental excellence by 0.373%. A 1% environmental degradation decreases human health by 0.317%; consequently, economic growth declines by 1.102%. Good governance emerges as a key solution, with a 1% improvement in public institutions mitigating the adverse impact of real GDP on the environment by 0.777%. Redirecting 1% of loans to eco-friendly projects improves the environment by 1.311%. Dumitrescu-Hurlin and PVAR Granger tests support these findings.

AB - This study examines the impact of monetary developments on environmental quality and economic growth. We utilize ARDL/PMG models to study twelve climatically vulnerable countries from 1996 to 2018. We find that a 1% increase in real GDP and domestic credit harms the environment by 0.827% and 0.220%, respectively. However, savings improve environmental excellence by 0.373%. A 1% environmental degradation decreases human health by 0.317%; consequently, economic growth declines by 1.102%. Good governance emerges as a key solution, with a 1% improvement in public institutions mitigating the adverse impact of real GDP on the environment by 0.777%. Redirecting 1% of loans to eco-friendly projects improves the environment by 1.311%. Dumitrescu-Hurlin and PVAR Granger tests support these findings.

KW - Environmental degradation index

KW - PCA technique

KW - good governance

KW - high-risk countries

KW - human health index

KW - panel ARDL method

UR - https://www.scopus.com/pages/publications/85180949242

U2 - 10.18267/j.polek.1405

DO - 10.18267/j.polek.1405

M3 - 文章

AN - SCOPUS:85180949242

SN - 0032-3233

VL - 71

SP - 730

EP - 757

JO - Politicka Ekonomie

JF - Politicka Ekonomie

IS - 6

ER -

Combining Economic Growth and Financial Development in Environment-Health Nexus

Abstract

UN SDGs

Keywords

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