Combining Economic Growth and Financial Development in Environment-Health Nexus
Combining Economic Growth and Financial Development in Environment-Health Nexus
Author(s): Han Dongping, Mansoor Ahmed Golo, Qamaruddin Mahar, Syed Safdar Ali Shah, Maysa KadyrovaSubject(s): Energy and Environmental Studies, Health and medicine and law, Economic development, Environmental interactions
Published by: Vysoká škola ekonomická v Praze
Keywords: Environmental degradation index; human health index; PCA technique; panel ARDL method; good governance; high-risk countries;
Summary/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.
Journal: Politická ekonomie
- Issue Year: 71/2023
- Issue No: 6
- Page Range: 730-757
- Page Count: 28
- Language: English