Cargando…
Economic growth, renewable energy and financial development in the CPTPP countries
The trade agreement is generally considered an effective mechanism to encourage trading activities. However, trade activities may lead to environmental degradation because more trade is generally associated with more energy consumption. In addition, financial development with an increased flow of ca...
Autores principales: | , , |
---|---|
Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Public Library of Science
2022
|
Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9202881/ https://www.ncbi.nlm.nih.gov/pubmed/35709183 http://dx.doi.org/10.1371/journal.pone.0268631 |
_version_ | 1784728607048859648 |
---|---|
author | Vo, Duc Hong Tran, Quan Tran, Thao |
author_facet | Vo, Duc Hong Tran, Quan Tran, Thao |
author_sort | Vo, Duc Hong |
collection | PubMed |
description | The trade agreement is generally considered an effective mechanism to encourage trading activities. However, trade activities may lead to environmental degradation because more trade is generally associated with more energy consumption. In addition, financial development with an increased flow of capital among members is required to fund trading activities. Renewable energy can be a moderating factor to balance the effects of trade activities and financial development on the economy and the environment. This paper focuses on the inter-relationship between growth-energy-finance nexus for the CPTPP members in the 1971–2020 period. While the energy-growth-environment nexus has been extensively investigated, the energy-growth-finance relationship has been largely ignored in existing literature, particularly for the CPTPP countries. Our findings can be summarized as follows. First, we find that renewable energy consumption does reduce CO(2) emission while financial development does not necessarily increase environmental degradation. Second, financial development is found to cause renewable energy usage bilaterally. Finally, when different proxies are used for financial development, a bilateral causality relationship between renewable energy usage, financial development and economic growth is confirmed. These important findings imply that the governments of the CPTPP countries should encourage renewable energy usage to achieve the dual objectives from the CPTPP trade agreement: (i) to increase trade activities; and (ii) to support further financial development within the region. These two objectives together support economic growth. |
format | Online Article Text |
id | pubmed-9202881 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Public Library of Science |
record_format | MEDLINE/PubMed |
spelling | pubmed-92028812022-06-17 Economic growth, renewable energy and financial development in the CPTPP countries Vo, Duc Hong Tran, Quan Tran, Thao PLoS One Research Article The trade agreement is generally considered an effective mechanism to encourage trading activities. However, trade activities may lead to environmental degradation because more trade is generally associated with more energy consumption. In addition, financial development with an increased flow of capital among members is required to fund trading activities. Renewable energy can be a moderating factor to balance the effects of trade activities and financial development on the economy and the environment. This paper focuses on the inter-relationship between growth-energy-finance nexus for the CPTPP members in the 1971–2020 period. While the energy-growth-environment nexus has been extensively investigated, the energy-growth-finance relationship has been largely ignored in existing literature, particularly for the CPTPP countries. Our findings can be summarized as follows. First, we find that renewable energy consumption does reduce CO(2) emission while financial development does not necessarily increase environmental degradation. Second, financial development is found to cause renewable energy usage bilaterally. Finally, when different proxies are used for financial development, a bilateral causality relationship between renewable energy usage, financial development and economic growth is confirmed. These important findings imply that the governments of the CPTPP countries should encourage renewable energy usage to achieve the dual objectives from the CPTPP trade agreement: (i) to increase trade activities; and (ii) to support further financial development within the region. These two objectives together support economic growth. Public Library of Science 2022-06-16 /pmc/articles/PMC9202881/ /pubmed/35709183 http://dx.doi.org/10.1371/journal.pone.0268631 Text en © 2022 Vo et al https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. |
spellingShingle | Research Article Vo, Duc Hong Tran, Quan Tran, Thao Economic growth, renewable energy and financial development in the CPTPP countries |
title | Economic growth, renewable energy and financial development in the CPTPP countries |
title_full | Economic growth, renewable energy and financial development in the CPTPP countries |
title_fullStr | Economic growth, renewable energy and financial development in the CPTPP countries |
title_full_unstemmed | Economic growth, renewable energy and financial development in the CPTPP countries |
title_short | Economic growth, renewable energy and financial development in the CPTPP countries |
title_sort | economic growth, renewable energy and financial development in the cptpp countries |
topic | Research Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9202881/ https://www.ncbi.nlm.nih.gov/pubmed/35709183 http://dx.doi.org/10.1371/journal.pone.0268631 |
work_keys_str_mv | AT voduchong economicgrowthrenewableenergyandfinancialdevelopmentinthecptppcountries AT tranquan economicgrowthrenewableenergyandfinancialdevelopmentinthecptppcountries AT tranthao economicgrowthrenewableenergyandfinancialdevelopmentinthecptppcountries |