Interactive Effects of Carbon Dioxide Molecules, Demographic Changes on Financial Development in Sub-Saharan Africa

Authors

  • Charles O. Manasseh Department of Banking and Finance, University of Nigeria, Enugu, Enugu State, Nigeria
  • Chine Sp Logan Department of Public Policy, Helms School of Government, Liberty University, Lynchburg, VA 24502, USA
  • Ebele C. Igwemeka Department of Banking and Finance, University of Nigeria, Enugu, Enugu State, Nigeria
  • Faith C. Ekwunife Department of Banking and Finance, Evangel University Akaeze, Ebonyi, Ebonyi State, Nigeria
  • Chukwunonso F. Onoh Department of Economics, National Open University of Nigeria, Nigeria
  • Ogochukwu C. Okanya Department of Banking and Finance, Institute of Management and Technology, Enugu, Enugu State, Nigeria
  • Grace C. Eje Department of Banking and Finance, Enugu State University of Science and Technology, Enugu, Nigeria
  • Kingsley C. Ezechi Department of Political Science and International Relations, Godfrey Okoye University, Enugu, Enugu State, Nigeria
  • Wilfred O. Okonkwo Department of Political Science and International Relations, Godfrey Okoye University, Enugu, Enugu State, Nigeria

DOI:

https://doi.org/10.32479/ijeep.14652

Keywords:

CO2 Emissions, Economic Development, Demographic Changes

Abstract

This study examines the interaction impacts of carbon dioxide molecule emissions and population changes on financial development in Sub-Saharan Africa (SSA). The study used yearly time series data spanning the years 2000 to 2021. Following the PMG and FE results, the dynamic system GMM estimator was used in the study. The study found a significant inverse long-run relationship between carbon dioxide (CO2) emissions and financial development. Also, demographic changes have a significant positive impact on financial development. The interaction term findings demonstrate that changes in CO2 and GHG emissions have a negative and significant influence on the impact of the money supply ratio on financial development in SSA. The study suggests policies that support the adoption of financial aid or other incentives for initiatives that reduce CO2 emissions. Additionally, initiatives to support financial inclusion, uphold financial stability, encourage the expansion of infrastructure, advance social welfare, and ensure environmental sustainability should be made. Therefore, the SSA countries might benefit from their expanding populations to drive long-term economic expansion and improve living standards for their people.

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Published

2024-07-05

How to Cite

Manasseh, C. O., Logan, C. S., Igwemeka, E. C., Ekwunife, F. C., Onoh, C. F., Okanya, O. C., … Okonkwo, W. O. (2024). Interactive Effects of Carbon Dioxide Molecules, Demographic Changes on Financial Development in Sub-Saharan Africa. International Journal of Energy Economics and Policy, 14(4), 672–683. https://doi.org/10.32479/ijeep.14652

Issue

Vol. 14 No. 4 (2024)

Section

Articles

License

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