Skip to main content
SpringerLink
Log in

Battling for net zero carbon: the position of governance and financial indicators

  • Research Article
  • Published:
Environmental Science and Pollution Research Aims and scope Submit manuscript

Abstract

Africa, over the past years, has put various measures in place in the fight against carbon emissions. Achieving net zero carbon has caused the continent researchers to investigate various conditions required for a successful transition. Therefore, the political system cannot be left out since it plays a major role in decision-making. This study contributes to previous literature analyzing the empirical effect of financial development and governance quality on carbon emissions. The study is focused on 52 African countries with data from 1996 to 2021. Panel quantile and generalized method of moments are used for the analysis. The result indicates that financial development contributes to environmental degradation, government effectiveness, rule of law, and political stability which promote environmental pollution; however, control of corruption, renewable energy, and economic growth promote ecological sustainability. According to the aforementioned, it is crucial for governments to include financial development plans in national environmental strategies, particularly for those in African nations. Furthermore, governments should put restrictions on trade to control the trade of high-carbon technologies.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4

Similar content being viewed by others

Data availability

The data are available upon demand by request to the corresponding author.

References

  • Abudu H, Wesseh Jr PK, Lin B (2023) Are African countries on track to achieve their NDCs pledges? Evidence from difference-in-differences technique. Environ Impact Assess Rev 98:106917

    Article  Google Scholar 

  • Acheampong AO (2019) Modelling for insight: does financial development improve environmental quality? Energy Econ 83:156–179

    Article  Google Scholar 

  • Adams S, Acheampong AO (2019) Reducing carbon emissions: the role of renewable energy and democracy. J Clean Prod 240:118245

    Article  Google Scholar 

  • Adebayo TS, Kartal MT, Ağa M, Al-Faryan MAS (2023) Role of country risks and renewable energy consumption on environmental quality: evidence from MINT countries. J Environ Manag 327:116884

    Article  Google Scholar 

  • Adedoyin FF, Erum N, Bekun FV (2022) How does institutional quality moderates the impact of tourism on economic growth? Startling evidence from high earners and tourism-dependent economies. Tour Econ 28:1311–1332

    Article  Google Scholar 

  • Agyeman SD, Lin B (2022) Nonrenewable and renewable energy substitution, and low–carbon energy transition: evidence from North African countries. Renew Energy

    Google Scholar 

  • Ajanaku BA, Collins AR (2021) Economic growth and deforestation in African countries: is the environmental Kuznets curve hypothesis applicable? Forest Policy Econ 129:102488

    Article  Google Scholar 

  • Akinlo AE (2004) Foreign direct investment and growth in Nigeria: an empirical investigation. J Policy Model 26:627–639

    Article  Google Scholar 

  • Al-Tal R, Murshed M, Ahmad P, Alfar AJ, Bassim M, Elheddad M, Mahmood H (2021) The non-linear effects of energy efficiency gains on the incidence of energy poverty. Sustainability 13(19):11055

    Article  CAS  Google Scholar 

  • Amuakwa-Mensah F, Näsström E (2022) Role of banking sector performance in renewable energy consumption. Appl Energy 306:118023

    Article  Google Scholar 

  • Anton SG, Nucu AEA (2020) The effect of financial development on renewable energy consumption A panel data approach. Renew Energy 147:330–338

    Article  Google Scholar 

  • Appiah M, Onifade ST, Gyamfi BA (2022) Building critical infrastructures: evaluating the roles of governance and institutions in infrastructural developments in sub-Sahara African countries. Eval Rev 0193841X221100370

  • Aquilas NA, Mukong AK, Kimengsi JN, Ngangnchi FH (2022) Economic activities and deforestation in the Congo basin: an environmental Kuznets curve framework analysis. Environ Chall 8:100553

    Article  Google Scholar 

  • Asante D, Ampah JD, Afrane S, Adjei-Darko P, Asante B, Fosu E, Dankwah DA, Amoh PO (2022) Prioritizing strategies to eliminate barriers to renewable energy adoption and development in Ghana: a CRITIC-fuzzy TOPSIS approach. Renew Energy 195:47–65

    Article  Google Scholar 

  • Asongu SA, Odhiambo NM (2020) Enhancing governance for environmental sustainability in sub-Saharan Africa. Energy Explor Exploit 39:444–463

    Article  Google Scholar 

  • Awan AM, Azam M, Saeed IU, Bakhtyar B (2020) Does globalization and financial sector development affect environmental quality? A panel data investigation for the Middle East and North African countries. Environ Sci Pollut Res 27:45405–45418

    Article  CAS  Google Scholar 

  • Azam W, Khan I, Ali SA (2023) Alternative energy and natural resources in determining environmental sustainability: a look at the role of government final consumption expenditures in France. Environ Sci Pollut Res 30:1949–1965

    Article  Google Scholar 

  • Bah MM, Abdulwakil MM, Azam M (2020) Income heterogeneity and the environmental Kuznets Curve hypothesis in sub-Saharan African countries. GeoJournal 85:617–628

    Article  Google Scholar 

  • Bahmani-Oskooee M, Kantipong T (2001) Bilateral J-curve between Thailand and her trading partners. J Econ Dev 26:107–118

    Google Scholar 

  • Bell A, Jones K (2015) Explaining fixed effects: random effects modeling of time-series cross-sectional and panel data. Polit Sci Res Methods 3:133–153

    Article  Google Scholar 

  • Berahab R (2022) The energy crisis of 2021 and its implications for africa. Policy (1967)

  • Bonsu NO (2020) Towards a circular and low-carbon economy: insights from the transitioning to electric vehicles and net zero economy. J Clean Prod 256:120659

    Article  Google Scholar 

  • Breitung J (2001) The local power of some unit root tests for panel data. In: Nonstationary panels, panel cointegration, and dynamic panels. Emerald Group Publishing Limited

    Google Scholar 

  • UN (2020) Climate Change Is an Increasing Threat to Africa. 27 October 2022. Retrieved February 12/2023. https://unfccc.int/news/climate-change-is-anincreasing-threat-to-africa

  • Charfeddine L, Kahia M (2019) Impact of renewable energy consumption and financial development on CO2 emissions and economic growth in the MENA region: a panel vector autoregressive (PVAR) analysis. Renew Energy 139:198–213

    Article  Google Scholar 

  • Chhabra M, Giri AK, Kumar A (2023) Do trade openness and institutional quality contribute to carbon emission reduction? Evidence from BRICS countries. Environ Sci Pollut Res 30:50986–51002

    Article  Google Scholar 

  • Çoban S, Topcu M (2013) The nexus between financial development and energy consumption in the EU: a dynamic panel data analysis. Energy Econ 39:81–88

    Article  Google Scholar 

  • Collier P, Conway G, Venables T (2008) Climate change and Africa. Oxf Rev Econ Policy 24:337–353

    Article  Google Scholar 

  • Das N, Murshed M, Rej S, Arunava Bandyopadhyay M, Hossain E, Mahmood H, Dagar V, Bera P (2023) Can clean energy adoption and international trade contribute to the achievement of India’s 2070 carbon neutrality agenda? Evidence using quantile ARDL measures. Int J Sustain Dev World Ecol 30:262–277

    Article  Google Scholar 

  • Dittmer KM, Wollenberg E, Cohen M, Egler C (2023) How good is the data for tracking countries’ agricultural greenhouse gas emissions? Making use of multiple national greenhouse gas inventories. Front Sustain Food Syst 7

  • Duan X, Li X, Tan W, Xiao R (2022) Decoupling relationship analysis between urbanization and carbon emissions in 33 African countries. Heliyon 8:e10423

    Article  Google Scholar 

  • Dutta KD, Saha M (2023) Does financial development cause sustainable development? A PVAR approach. Econ Change Restruct 56:879–917

    Article  Google Scholar 

  • Falchetta G, Adeleke A, Awais M, Byers E, Copinschi P, Duby S, Hughes A, Ireland G, Riahi K, Rukera-Tabaro S (2022) A renewable energy-centred research agenda for planning and financing Nexus development objectives in rural sub-Saharan Africa. Energ Strat Rev 43:100922

    Article  Google Scholar 

  • Falkner R (2016) The Paris Agreement and the new logic of international climate politics. Int Aff 92:1107–1125

    Article  Google Scholar 

  • Fankhauser S, Smith SM, Allen M, Axelsson K, Hale T, Cameron Hepburn J, Kendall M, Khosla R, Lezaun J, Mitchell-Larson E (2022) The meaning of net zero and how to get it right. Nat Clim Chang 12:15–21

    Article  Google Scholar 

  • Fotso-Nguemo TC, Vondou DA, Diallo I, Diedhiou A, Weber T, Tanessong RS, Nghonda JP, Yepdo ZD (2022) Potential impact of 1.5, 2 and 3° C global warming levels on heat and discomfort indices changes over Central Africa. Sci Total Environ 804:150099

    Article  CAS  Google Scholar 

  • Friedlingstein P, Jones MW, O'Sullivan M, Andrew RM, Bakker DCE, Hauck J, Le Quéré C, Peters GP, Peters W, Pongratz J (2022) Global carbon budget 2021. Earth Syst Sci Data 14:1917–2005

    Article  Google Scholar 

  • Gao J, Zhang L (2014) Electricity consumption–economic growth–CO2 emissions nexus in sub-Saharan Africa: evidence from panel cointegration. Afr Dev Rev 26:359–371

    Article  Google Scholar 

  • Gielen D, Boshell F, Saygin D, Bazilian MD, Wagner N, Gorini R (2019) The role of renewable energy in the global energy transformation. Energ Strat Rev 24:38–50

    Article  Google Scholar 

  • Group, WordBank (2023) Emissions data are sourced from Climate Watch Historical GHG Emissions ( 1990-2020 ). World Resources Institute, Washington, DC

    Google Scholar 

  • Gyamfi BA (2022) Consumption-based carbon emission and foreign direct investment in oil-producing sub-Sahara African countries: the role of natural resources and urbanization. Environ Sci Pollut Res 29:13154–13166

    Article  Google Scholar 

  • Gyamfi BA, Agozie DQ, Musah M, Onifade ST, Prusty S (2023) The synergistic roles of green openness and economic complexity in environmental sustainability of Europe's largest economy: implications for technology-intensive and environmentally friendly products. Environ Impact Assess Rev 102

  • Gyimah J, Hayford IS, Nwigwe UA, Opoku EO (2023a) The role of energy and economic growth towards sustainable environment through carbon emissions mitigation. PLOS Clim 2:e0000116

    Article  Google Scholar 

  • Gyimah J, Yao X (2022) Globalisation and renewable energy impact on carbon emissions in Ghana. Int J Glob Warm 28:113–121

    Article  Google Scholar 

  • Hussain M, Dogan E (2021) The role of institutional quality and environment-related technologies in environmental degradation for BRICS. J Clean Prod 304:127059

    Article  CAS  Google Scholar 

  • Jakada AH, Mahmood S, Haron NF, Danmaraya IA (2022) Revisiting the environmental Kuznet curve in Africa: the interactive role of financial development in sustainable environment. J Sustain Sci Manag 17:1–20

    Article  CAS  Google Scholar 

  • Jalil A, Mahmud SF (2009) Environment Kuznets curve for CO2 emissions: a cointegration analysis for China. Energy Policy 37:5167–5172

    Article  Google Scholar 

  • Jian L, Chuimin K, Jijian Z, Yusheng K, Ntarmah AH (2022) The relationship between economic growth and environmental degradation: could West African countries benefit from EKC hypothesis? Environ Sci Pollut Res 29:73052–73070

    Article  Google Scholar 

  • Jie H, Khan I, Alharthi M, Zafar MW, Saeed A (2023) Sustainable energy policy, socio-economic development, and ecological footprint: the economic significance of natural resources, population growth, and industrial development. Util Policy 81:101490

    Article  Google Scholar 

  • Karim S, Appiah M, Naeem MA, Lucey BM, Li M (2022) Modelling the role of institutional quality on carbon emissions in Sub-Saharan African countries. Renew Energy 198:213–221

    Article  CAS  Google Scholar 

  • Khan AA, Khan SU, Ali MAS, Safi A, Gao Y, Ali M, Luo J (2022) Role of institutional quality and renewable energy consumption in achieving carbon neutrality: case study of G-7 economies. Sci Total Environ 814:152797

    Article  CAS  Google Scholar 

  • Koasidis K, Nikas A, Karamaneas A, Saulo M, Tsipouridis I, Campagnolo L, Gambhir A, Van de Ven D-J, McWilliams B, Doukas H (2022) Climate and sustainability co-governance in Kenya: a multi-criteria analysis of stakeholders' perceptions and consensus. Energy Sustain Dev 68:457–471

    Article  Google Scholar 

  • Kong C, Zhang J, Ntarmah AH, Kong Y, Zhao H (2022) Carbon neutrality in the Middle East and North Africa: the roles of renewable energy, economic growth, and government effectiveness. Int J Environ Res Public Health 19:10676

    Article  Google Scholar 

  • Lahiani A, Mefteh-Wali S, Shahbaz M, Vo XV (2021) Does financial development influence renewable energy consumption to achieve carbon neutrality in the USA? Energy Policy 158:112524

    Article  Google Scholar 

  • Lee C-C, Lee C-C (2022) How does green finance affect green total factor productivity? Evidence from China. Energy Econ 107:105863

    Article  Google Scholar 

  • Li W, Qiao Y, Li X, Wang Y (2022) Energy consumption, pollution haven hypothesis, and environmental Kuznets curve: examining the environment–economy link in belt and road initiative countries. Energy 239:122559

    Article  Google Scholar 

  • Liu F, Feng J, Zhai G, Razzaq A (2022) Influence of fiscal decentralization and renewable energy investment on ecological sustainability in EU: what is the moderating role of institutional governance? Renew Energy 200:1265–1274

    Article  Google Scholar 

  • Mukoro V, Sharmina M, Gallego-Schmid A (2022) A review of business models for access to affordable and clean energy in Africa: do they deliver social, economic, and environmental value? Energy Res Soc Sci 88:102530

    Article  Google Scholar 

  • Mungai EM, Wagura Ndiritu S, Da Silva I (2022) Unlocking climate finance potential and policy barriers—a case of renewable energy and energy efficiency in sub-Saharan Africa. Resour Environ Sustain 7:100043

    Google Scholar 

  • Musa MS, Jelilov G, Iorember PT, Usman O (2021) Effects of tourism, financial development, and renewable energy on environmental performance in EU-28: does institutional quality matter? Environ Sci Pollut Res 28:53328–53339

    Article  Google Scholar 

  • Mutezo G, Mulopo J (2021) A review of Africa's transition from fossil fuels to renewable energy using circular economy principles. Renew Sust Energ Rev 137:110609

    Article  Google Scholar 

  • Nalule VR (2020) Transitioning to a low carbon economy: is Africa ready to bid farewell to fossil fuels? In: The Palgrave Handbook of Managing Fossil Fuels and Energy Transitions. (Springer)

    Google Scholar 

  • Nepal R, Musibau HO, Jamasb T (2021) Energy consumption as an indicator of energy efficiency and emissions in the European Union: a GMM based quantile regression approach. Energy Policy 158:112572

    Article  CAS  Google Scholar 

  • Nkiriki JR (2023) Energy access and climate mitigation: impacts on technology choice, emissions, and costs in East Africa. Carnegie Mellon University

    Google Scholar 

  • Nongqayi L, Risenga I, Dukhan S (2022) Youth’s knowledge and awareness of human contribution to climate change: the influence of social and cultural contexts within a developing country. Aust Educ Dev Psychol 39:44–57

    Google Scholar 

  • Ntarmah AH, Kong Y, Obeng AF, Gyedu S (2022) The role of bank financing in economic growth and environmental outcomes of sub-Saharan Africa: evidence from novel quantile regression and panel vector autoregressive models. Environ Sci Pollut Res 31807–31845:1–39

    Google Scholar 

  • Obobisa ES (2022) Achieving 1.5° C and net-zero emissions target: the role of renewable energy and financial development. Renew Energy 188:967–985

    Article  CAS  Google Scholar 

  • Ofori EK, Hayford IS, Nyantakyi G, Tergu CT, Opoku-Mensah E (2023) Synerging Sustainable Development Goals—can clean energy (green) deliver UN-SDG geared towards socio-economic-environment objectives in emerging BRICS? Environ Sci Pollut Res 98470–98489:1–20

    Google Scholar 

  • Ofori EK, Onifade ST, Ali EB, Alola AA, Zhang J (2023a) Achieving carbon neutrality in post COP26 in BRICS, MINT, and G7 economies: the role of financial development and governance indicators. J Clean Prod 135853

  • Ogundipe A, Olurinola O, Odebiyi JT (2014) 'Examining the validity of EKC in Western Africa: different pollutants option. Available at SSRN 2512152

    Google Scholar 

  • Ohene E, Chan APC, Darko A (2022) Prioritizing barriers and developing mitigation strategies toward net-zero carbon building sector. Build Environ 109437

  • Omri A, Kahia M, Kahouli B (2021) Does good governance moderate the financial development-CO2 emissions relationship? Environ Sci Pollut Res 28:47503–47516

    Article  CAS  Google Scholar 

  • Patterson J, Schulz K, Vervoort J, van der Hel S, Widerberg O, Adler C, Hurlbert M, Anderton K, Sethi M, Barau A (2017) Exploring the governance and politics of transformations towards sustainability. Environ Innov Soc Trans 24:1–16

    Article  Google Scholar 

  • Pauw WP, Castro P, Pickering J, Bhasin S (2020) Conditional nationally determined contributions in the Paris Agreement: foothold for equity or Achilles heel? Clim Pol 20:468–484

    Article  Google Scholar 

  • Pesaran MH (2021) General diagnostic tests for cross-sectional dependence in panels. Empir Econ 60:13–50

    Article  Google Scholar 

  • Pour N, Webley PA, Cook PJ (2018) Opportunities for application of BECCS in the Australian power sector. Appl Energy 224:615–635

    Article  Google Scholar 

  • Pueyo A (2018) What constrains renewable energy investment in sub-Saharan Africa? A comparison of Kenya and Ghana. World Dev 109:85–100

    Article  Google Scholar 

  • Ram M, Bogdanov D, Aghahosseini A, Gulagi A, Oyewo AS, Mensah TNO, Child M, Caldera U, Sadovskaia K, De Souza L, Barbosa NS (2022) Global energy transition to 100% renewables by 2050: not fiction, but much needed impetus for developing economies to leapfrog into a sustainable future. Energy 246:123419

    Article  Google Scholar 

  • Ray CA (2021) The impact of climate change on Africa’s economies. Foreign Policy Research Institute

    Google Scholar 

  • Rehman FU, Islam MM (2022) Financial infrastructure—total factor productivity (TFP) nexus within the purview of FDI outflow, trade openness, innovation, human capital and institutional quality: evidence from BRICS economies. Appl Econ:1–19

  • Rissman J, Bataille C, Masanet E, Aden N, Morrow III WR, Zhou N, Elliott N, Dell R, Heeren N, Huckestein B (2020) Technologies and policies to decarbonize global industry: review and assessment of mitigation drivers through 2070. Appl Energy 266:114848

    Article  CAS  Google Scholar 

  • Saboori B, Sulaiman J, Mohd S (2012) Economic growth and CO2 emissions in Malaysia: a cointegration analysis of the environmental Kuznets curve. Energy Policy 51:184–191

    Article  Google Scholar 

  • Samour A, Moyo D, Tursoy T (2022a) Renewable energy, banking sector development, and carbon dioxide emissions nexus: a path toward sustainable development in South Africa. Renew Energy 193:1032–1040

    Article  Google Scholar 

  • Ahmed Samour, Shahzad Umer, Mentel Grzegorz (2022b) The impact of financial development and FDI on renewable energy in the UAE: a path towards sustainable development. Sustain 14(3):1208

    Article  Google Scholar 

  • Sarpong KA, Xu W, Gyamfi BA, Ofori EK (2023a) Can environmental taxes and green-energy offer carbon-free E7 economies? An empirical analysis in the framework of COP-26. Environ Sci Pollut Res Int 30:51726–51739

    Article  Google Scholar 

  • Sarpong KA, Xu W, Gyamfi BA, Ofori EK (2023b) A step towards carbon neutrality in E7: the role of environmental taxes, structural change, and green energy. J Environ Manag 337:117556

    Article  CAS  Google Scholar 

  • Shahbaz M, Topcu BA, Sarıgül SS, Vo XV (2021) The effect of financial development on renewable energy demand: the case of developing countries. Renew Energy 178:1370–1380

    Article  Google Scholar 

  • Sini S, Abdul-Rahim AS, Chin L, Said R, Sulaiman C (2022) Natural resources’ impact on capital flow and conflict relationship in Africa: a novel insight from GMM and quantile regression. Res Policy 78:102791

    Article  Google Scholar 

  • Solarin SA, Al-Mulali U, Musah I, Ozturk I (2017) Investigating the pollution haven hypothesis in Ghana: an empirical investigation. Energy 124:706–719

    Article  Google Scholar 

  • Soylu ÖB, Adebayo TS, Kirikkaleli D (2021) The imperativeness of environmental quality in China amidst renewable energy consumption and trade openness. Sustainability 13:5054

    Article  Google Scholar 

  • Su C-W, Pang L-D, Tao R, Shao X, Umar M (2022) Renewable energy and technological innovation: which one is the winner in promoting net-zero emissions? Technol Forecast Soc Chang 182:121798

    Article  Google Scholar 

  • Su Z-W, Umar M, Kirikkaleli D, Adebayo TS (2021) Role of political risk to achieve carbon neutrality: evidence from Brazil. J Environ Manag 298:113463

    Article  CAS  Google Scholar 

  • Sufiani O, Sahini MG, Elisadiki J (2023) Towards attaining SDG 6: the opportunities available for capacitive deionization technology to provide clean water to the African population. Environ Res 216:114671

    Article  CAS  Google Scholar 

  • Sun Y, Hao Q, Cui C, Shan Y, Zhao W, Wang D, Zhang Z, Guan D (2022) Emission accounting and drivers in East African countries. Appl Energy 312:118805

    Article  CAS  Google Scholar 

  • Sun Y, Razzaq A (2022) Composite fiscal decentralisation and green innovation: imperative strategy for institutional reforms and sustainable development in OECD countries. Sustain Dev 30:944–957

    Article  Google Scholar 

  • Tahir T, Luni T, Majeed MT, Zafar A (2021) The impact of financial development and globalization on environmental quality: evidence from South Asian economies. Environ Sci Pollut Res 28:8088–8101

    Article  Google Scholar 

  • Talan A, Rao A, Sharma GD, Apostu S-A, Abbas S (2023) Transition towards clean energy consumption in G7: can financial sector, ICT and democracy help? Res Policy 82:103447

    Article  Google Scholar 

  • Tang C, Irfan M, Razzaq A, Dagar V (2022) Natural resources and financial development: role of business regulations in testing the resource-curse hypothesis in ASEAN countries. Res Policy 76:102612

    Article  Google Scholar 

  • Tinta AA (2023) Energy substitution in Africa: cross-regional differentiation effects. Energy 263:125585

    Article  Google Scholar 

  • Udeagha MC, Ngepah N (2022) Does trade openness mitigate the environmental degradation in South Africa? Environ Sci Pollut Res 29:19352–19377

    Article  Google Scholar 

  • Ugwu J, Odo KC, Oluka LO, Salami KO (2022) A systematic review on renewable energy development, challenges and policies in nigeria with an international perspective and public opinions. Int J Renew En Dev 11:287–308

    Article  Google Scholar 

  • Usman O, Alola AA, Akadiri SS (2022) Effects of domestic material consumption, renewable energy, and financial development on environmental sustainability in the EU-28: evidence from a GMM panel-VAR. Renew Energy 184:239–251

    Article  Google Scholar 

  • Velicer WF, Jackson DN (1990) Component analysis versus common factor analysis: some issues in selecting an appropriate procedure. Multivar Behav Res 25:1–28

    Article  CAS  Google Scholar 

  • Visseren-Hamakers IJ (2015) Integrative environmental governance: enhancing governance in the era of synergies. Curr Opin Environ Sustain 14:136–143

    Article  Google Scholar 

  • Walwyn DR (2020) Turning points for sustainability transitions: institutional destabilization, public finance and the techno-economic dynamics of decarbonization in South Africa. Energy Res Soc Sci 70:101784

    Article  Google Scholar 

  • Wang Q, Guo J, Li R, Mikhaylov A, Moiseev N (2023) Does technical assistance alleviate energy poverty in sub-Saharan African countries? A new perspective on spatial spillover effects of technical assistance. Energ Strat Rev 45:101047

    Article  CAS  Google Scholar 

  • Wang Q-J, Wang H-J, Chang C-P (2022) Environmental performance, green finance and green innovation: what's the long-run relationships among variables? Energy Econ 110:106004

    Article  Google Scholar 

  • Wen Y, Song P, Yang D, Gao C (2022) Does governance impact on the financial development-carbon dioxide emissions nexus in G20 countries. PLoS One 17:e0273546

    Article  CAS  Google Scholar 

  • Wencong L, Kasimov I, Saydaliev HB (2023) Foreign direct investment and renewable energy: examining the environmental Kuznets curve in resource-rich transition economies. Renew Energy 208:301–310

    Article  Google Scholar 

  • Wu Q, Wang R (2023) Do environmental regulation and foreign direct investment drive regional air pollution in China? Sustainability 15:1567

    Article  Google Scholar 

  • Xu L, Wang X, Guo W (2022) Does renewable energy adaptation, globalization, and financial development matter for environmental quality and economic progress? Evidence from panel of big five (B5) economies. Renew Energy 192:631–640

    Article  Google Scholar 

  • Xu Z, Baloch MA, Meng F, Zhang J, Mahmood Z (2018) Nexus between financial development and CO2 emissions in Saudi Arabia: analyzing the role of globalization. Environ Sci Pollut Res 25:28378–28390

    Article  CAS  Google Scholar 

  • Zhang H, Kim H (2022) Institutional quality and FDI location: a threshold model. Econ Model 114

  • Zhang Y, Liu Z, Baloch ZA (2022) Combining effects of private participation and green finance for renewable energy: Growth of economy as mediating tool. Renew Energy 195:1028–1036

    Article  CAS  Google Scholar 

  • Zhao W, Liu Y, Huang L (2022a) Estimating environmental Kuznets curve in the presence of eco-innovation and solar energy: an analysis of G-7 economies. Renew Energy 189:304–314

    Article  CAS  Google Scholar 

  • Zhao X, Ma X, Chen B, Shang Y, Song M (2022b) Challenges toward carbon neutrality in China: strategies and countermeasures. Resour Conserv Recycl 176:105959

    Article  CAS  Google Scholar 

  • Zuo S, Zhu M, Zhexiao X, Oláh J, Lakner Z (2022) The dynamic impact of natural resource rents, financial development, and technological innovations on environmental quality: empirical evidence from BRI economies. Int J Environ Res Public Health 19:130

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. College of Economics and Management, Taiyuan University of Technology, Taiyuan, China, 030024

    Justice Gyimah

  2. School of Management Engineering, Zhengzhou University, Zhengzhou, Henan Province, People’s Republic of China

    Isaac Sam Hayford & Elvis Kwame Ofori

  3. Department of Accounting, Zhongnan University of Economics and Law, Wuhan, China

    George Nyantakyi

  4. College Of Science and Engineering ,Plant & Agribiosciences, University Of Galway, Galway, Ireland

    Elvis Kwame Ofori

Authors
  1. Justice Gyimah
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Isaac Sam Hayford
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. George Nyantakyi
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Elvis Kwame Ofori
    View author publications

    You can also search for this author in PubMed Google Scholar

Contributions

J.G. conceptualization, data curation, methodology, formal analysis, and writing, original draft; I.S.H. methodology and formal analysis; G.N. visualization and data curation; E.K.O. formal analysis and writing, original draft.

Corresponding author

Correspondence to Isaac Sam Hayford.

Ethics declarations

Ethics approval

Not applicable

Consent for publication

Not applicable

Consent to participate

Not applicable

Competing interests

The author declares no competing interests.

Additional information

Responsible Editor: Ilhan Ozturk

Publisher’s Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Gyimah, J., Hayford, I.S., Nyantakyi, G. et al. Battling for net zero carbon: the position of governance and financial indicators. Environ Sci Pollut Res 30, 120620–120637 (2023). https://doi.org/10.1007/s11356-023-30358-2

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11356-023-30358-2

Keywords

Search

Navigation