Investigating the effect of industrialization, economic development, liberalization of financial and commercial markets on the production of greenhouse gases in line with the sustainability of environmental development with quantile regression
Subject Areas : Environmental pollutions (water, soil and air)Behnam Mosayebzadeh 1 , Abbas Memarnajad 2 , taghi torabi 3
1 - PhD student in Economics, Science and Research Unit, Islamic Azad University, Tehran, Iran.
2 - Assistant Professor, Department of Economics, Science and Research Unit, Islamic Azad University, Tehran, Iran
3 - Professor, Department of Economics, Science and Research Unit, Islamic Azad University, Tehran, Iran.
Keywords: industrialization, economic development, financial liberalization, trade liberalization, environment, quantile regression. JEL Classification: C24, E52, G12.,
Abstract :
In this study, the effects of industrialization, economic development, financial and commercial market liberalization on environmental degradation are explained. For this purpose, in the form of the final model of the quantile panel for the period of 2000-2021, the current issue was investigated in (BRICS) countries and (OPEC) countries. The results and estimation of the quantile model show that in the first and second (bottom) quartiles; Energy consumption per capita, stock market development index, financial development, trade, gross domestic product per capita, added value of the industry sector, labor and capital have a positive effect on the potential of global warming and carbon dioxide emissions in (BRICS) and (OPEC) countries. and from the third and fourth quarters onwards, the intensity of its impact decreases in (BRICS) countries and increases in (OPEC) countries, in other words, the study indicators in the first (Q25) and second (Q50) quarters, with global warming and the emission of di Carbon dioxide has a positive time correlation in both groups of countries. Then, as the lag components move away and move towards the third (Q75) and fourth (Q95) quartiles, the correlation between the study indicators and global warming and carbon dioxide emissions increases in (OPEC) countries and decreases in (BRICS) countries. This trend expresses the warning that in OPEC countries, much effort is not made to preserve the environment by reaching a high level of production, and it is necessary for OPEC countries, like advanced countries, to spend part of their income to preserve the environment as much as possible and Or use methods that cause less pollution and destruction to the environment in the path of their economic growth.
Background and Objective: The issue of environmental sustainability during the last three decades of the 20th century has been of particular interest to many people, especially researchers and governments, and since cities today are considered the most important factors affecting the sustainability of environmental development, the demand Sustainable urban development and sustainable cities are the most important challenges facing humanity in the 21st century. In this study, the effect of industrialization, economic development, liberalization of financial and commercial markets on the production of greenhouse gases in line with the sustainability of environmental development has been investigated with quantile regression.
Material and Methodology: To carry out this research, the effects of industrialization, economic development, liberalization of financial and commercial markets on environmental degradation in BRICS countries and OPEC countries were explained based on the quantile panel regression model and for the time period of 2000-2021. Quantile regression is a technique that can overcome the mentioned limitations. By using quantile regression and estimating a family of conditional quantile functions, more complete forms of the effect of explanatory variables in all parts of the distribution are obtained.
Findings: According to the results, energy consumption and the growth of the industrial sector lead to an increase in global warming and carbon dioxide emissions. In other words, environmental changes, energy consumption, along with the growth of the industrial sector, have caused many concerns in countries such as global warming, global warming, and the increase in greenhouse gas emissions.
Discussion and Conclusion: During the process of economic growth, due to the use of fossil fuels, we see air pollution followed by the emission of greenhouse gases, which leads to the destruction of the environment. The use of energy as a result of fuel processes (especially fossil fuels) has many negative effects such as environmental pollution. It can be concluded that based on the results of the quantile method, the effect of the globalization variable on global warming and carbon dioxide gas emissions was positive and significant, and this effect is intensified by moving to higher quartiles. In other words, the increase in globalization index has increased global warming and carbon dioxide emissions.
