Document Type : Research Paper
Authors
1 faculty member of payame noor university
2 Assistant professor, Department of Economics, Payame noor University
3 Master of Economics, Department of Economics, Ayatollah Boroujerdi University,
Abstract
In recent years, the surge in greenhouse gas emissions, environmental degradation, and climate change has emerged as a pivotal concern for environmental planners and policymakers. Given the predominant role of fossil fuels in carbon dioxide emissions, this study focuses on mitigating emissions, particularly in nations with robust fossil fuel economies. The primary objective of this research is to examine the impact of financial development and governance quality on carbon dioxide emissions within oil-exporting countries, utilizing the panel smooth transition regression model spanning the period 2000-2021. The findings substantiate the presence of a nonlinear relationship between financial development and carbon dioxide emissions. Initially, financial development exerts a positive and significant impact on emissions; however, beyond a certain threshold, this effect reverses, becoming negative. Regarding governance effectiveness, many oil-exporting nations wield substantial market influence due to their significant oil revenues. Notably, oil exporting-firms of these countries are predominantly state-owned or quasi-state firms. Their insulation from competitive threats, coupled with a lack of adherence to regulatory frameworks, has resulted in elevated carbon dioxide emissions under both governance regimes.
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