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Stock markets dynamics and environmental pollution: emerging issues and policy options in Asia

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Abstract

The fact is the stock market has an asymmetric effect on macroeconomic variables. In this study, we examine the nonlinear stock market reaction to the environment. This is the first study that considers the possibility of asymmetric effects of stock market on environmental pollution in Asia. This study considers the experiences of Asia economies by using the panel NARDL methodology over the data period from 1995 to 2019. The long-run panel NARDL results showed that the positive change in stock market increases carbon emissions. In adverse, the negative change in stock market significantly mitigates the carbon emissions in Asia. The short-run stock market asymmetric effects continued into the long-run asymmetric effects on the environment in Asia. Thus, policymakers and authorities should initiate to promote green financial activities in Asian stock markets.

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Availability of data and material

The datasets/materials used and/or analyzed for the present manuscript are available from the corresponding author on reasonable request.

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Authors and Affiliations

  1. Centrum Pontificia Universidad Catolica, Lima, Peru

    Carlos Samuel Ramos Meza

  2. Department of Management Sciences, COMSATS Attock Campus, Attock, Pakistan

    Maryam Kashif

  3. Teerthankar Mahaveer University, Moradabad, Uttar Pradesh, India

    Vipin Jain

  4. Department of Energy, Universidad de la Costa, Barranquilla, Colombia

    John William Grimaldo Guerrero

  5. Université des Mascareignes, Beau Bassin-Rose Hill, Mauritius

    Randhir Roopchund

  6. Department of Biosystems Engineering, Poznań University of Life Sciences, Wojska Polskiego 50, 60-627, Poznań, Poland

    Gniewko Niedbala

  7. Thuongmai University, Hanoi, Vietnam

    Cong Phan The

Authors
  1. Carlos Samuel Ramos Meza
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  2. Maryam Kashif
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  3. Vipin Jain
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  4. John William Grimaldo Guerrero
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  5. Randhir Roopchund
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  6. Gniewko Niedbala
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  7. Cong Phan The
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Contributions

Carlos Samuel Ramos Meza and Cong Phan The have provided the idea. Maryam Kashif, Vipin Jain, Randhir Roopchund, Gniewko Niedbala, and John William Grimaldo Guerrero have done the data acquisitions and analysis and written the whole draft. Carlos Samuel Ramos Meza and Cong Phan The read and approved the final version.

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Correspondence to Cong Phan The.

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Meza, C.S.R., Kashif, M., Jain, V. et al. Stock markets dynamics and environmental pollution: emerging issues and policy options in Asia. Environ Sci Pollut Res 28, 61801–61810 (2021). https://doi.org/10.1007/s11356-021-15116-6

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  • DOI: https://doi.org/10.1007/s11356-021-15116-6

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