The nexus between energy consumption and financial development: estimating the role of globalization in Next-11 countries

In the modern era of globalization, the economic activities expand with the passage of time. This expansion may increase demand for energy both in developing and developed countries. Therefore, this study assesses the impact of financial development on energy consumption incorporating the role of gl...

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Bibliographic Details
Published in:Environmental science and pollution research international 2018-07, Vol.25 (19), p.18651-18661
Main Authors: Danish, Saud, Shah, Baloch, Muhammad Awais, Lodhi, Rab Nawaz
Format: Article
Language:English
Subjects:
Aquatic Pollution
Atmospheric Protection/Air Quality Control/Air Pollution
Conservation of Energy Resources - economics
Conservation of Energy Resources - trends
Data processing
Developed countries
Developed Countries - economics
Developing Countries - economics
Earth and Environmental Science
Economic development
Economic Development - trends
Economic growth
Economic models
Economics
Ecotoxicology
Empirical analysis
Energy consumption
Energy demand
Energy policy
Environment
Environmental Chemistry
Environmental Health
Environmental science
Globalization
Humans
International Cooperation
Public Policy
Research Article
Waste Water Technology
Water Management
Water Pollution Control
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Summary:In the modern era of globalization, the economic activities expand with the passage of time. This expansion may increase demand for energy both in developing and developed countries. Therefore, this study assesses the impact of financial development on energy consumption incorporating the role of globalization in Next-11 countries. A group of panel estimation techniques is used to analyze the panel data and time series data for the time 1990–2014. The empirical results of the study suggest that financial development stimulates energy consumption. Also, globalization increases demand for energy consumption, although the single country analysis suggests that the effect of globalization on energy demand is heterogeneous among N-11 countries. Furthermore, feedback hypothesis is confirmed between financial development and energy consumption. Also, bidirectional causality is found between economic growth and energy consumption. The findings urge for the attention of policymaker in emerging countries to develop a strategy to reduce the consequences of energy consumption by controlling resource transfer through globalization to the host country and by adopting energy conversation policies.
ISSN:0944-1344
1614-7499
DOI:10.1007/s11356-018-2069-0