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Cited by 235

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Financial Instability and Consumption-based Carbon Emission in E-7 Countries: The Role of Trade and Economic Growth

Safi, Adnan, Chen, Yingying, Wahab, Salman, Ali, Shahid, Yi, Xianrong, Imran, Muhammad·2021·Sustainable Production and Consumption

Abstract

Abstract The present study examines the effects of financial instability on consumption-based carbon emission in the presence of international trade, technological innovation, and economic growth in Emerging Seven (E-7) countries from 1995-2018. This study employed second and third-generation panel cointegration methodologies. The result of the cross-sectional dependency and slope heterogeneity test confirms that the panels are correlated, and there exists slope heterogeneity. The results for the short- and long-run confirm the relationship between consumption-based carbon emission, financial instability, imports, exports, technological innovation, and economic growth. In both the short- and long-run, imports and economic growth enhances carbon emission, whereas financial instability, technological innovation, and exports significantly reduce consumption-based carbon emission. The robustness check findings obtained using the Augmented Mean Group (AMG) and Common correlated effect mean group (CCEMG) further validate the results. Policymakers should make financial reforms that actively encourage and give incentives to firms that adopt efficient and environmentally friendly technologies, reducing energy consumption, and carbon emission.

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Metadata

Authors
Safi, A., Chen, Y., Wahab, S., Ali, S., Yi, X., & Imran, M.
Venue
Sustainable Production and Consumption
Publisher
Elsevier BV
Published
2021-07
Volume
27
Pages
383-391
ISSN
2352-5509 (ISSN-L)
OpenAlex
W3097066385
Cited by
235
References
2
FWCI
35.95
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Financial Instability and Consumption-based Carbon Emission in E-7 Countries: The Role of Trade and Economic Growth. https://app.cochat.ai/papers/10.1016/j.spc.2020.10.034
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Safi, A., Chen, Y., Wahab, S., Ali, S., Yi, X., & Imran, M. (2021). Financial Instability and Consumption-based Carbon Emission in E-7 Countries: The Role of Trade and Economic Growth. Sustainable Production and Consumption. https://doi.org/10.1016/j.spc.2020.10.034

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