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How Does Environmental Degradation React to Stock Market Development in Developing Countries?

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Econometrics of Green Energy Handbook

Abstract

As capital markets develop, the issue of whether this development improves the environmental quality rises very rapidly. Although not very documented, the literature has reached a consensus on the positive role of stock market development on carbon emissions in developing countries. Previous studies, however, do not include great number of countries to reach a broad consensus and assume that the effect does not change over time. Given these motivations, this study examines the impact of stock market development on carbon emissions in a panel of 60 developing countries over the period 1990–2014. Findings reveal that stock market development decreases environmental degradation in the short-run, whereas further development leads to environmental degradation in the long-run. Policy implications depending on these results are also discussed.

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Author information

Authors and Affiliations

  1. Faculty of Economics and Administrative Sciences, Nevsehir Haci Bektas Veli University, Nevsehir, Turkey

    Mert Topcu

  2. Faculty of Economics and Administrative Sciences, Akdeniz University, Antalya, Turkey

    Can Tansel Tugcu

  3. Faculty of Applied Sciences, Kayseri University, Kayseri, Turkey

    Oguz Ocal

Authors
  1. Mert Topcu
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  2. Can Tansel Tugcu
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  3. Oguz Ocal
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Corresponding author

Correspondence to Mert Topcu .

Editor information

Editors and Affiliations

  1. School of Management and Economics, Beijing Institute of Technology, Beijing, China

    Muhammad Shahbaz

  2. Department of Political Economy and Public Finance, Universidad de Castilla-La Mancha, Cuenca, Spain

    Daniel Balsalobre-Lorente

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Topcu, M., Tugcu, C.T., Ocal, O. (2020). How Does Environmental Degradation React to Stock Market Development in Developing Countries?. In: Shahbaz, M., Balsalobre-Lorente, D. (eds) Econometrics of Green Energy Handbook. Springer, Cham. https://doi.org/10.1007/978-3-030-46847-7_14

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  • DOI: https://doi.org/10.1007/978-3-030-46847-7_14

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-46846-0

  • Online ISBN: 978-3-030-46847-7

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