Financial Development and Economic Growth Impact on The Environmental Degradation in Lebanon

Abstract

The study aims to examine the influence of financial development and economic growth on environmental degradation in Lebanon. Several theoretical and Empirical studies on the relationship between the financial development and economic growth on carbon emissions showed conflicting findings. This research focus on studying the impact of both the financial development and economic growth on environmental degradation in Lebanon. The findings indicate that financial development and economic growth both have significant and positive impact on the carbon dioxide emissions using some control variables like fossil energy consumption, trade openness and urbanization. Also, the results showed a significant impact for the control variables on carbon emissions. this suggests crucial implications for policy-makers. The study recommends that the policy makers in Lebanon should push the financial institutions to invest more in green and friendly environment projects which will lead to minimize the carbon dioxide emissions.Keywords: Financial Development, Economic Growth, Carbon Emission, Environmental degradationJEL Classifications: 016, 044, Q43 G00, Q50DOI: https://doi.org/10.32479/ijeep.9029