Dynamic linkages among CO2 emissions, human development, financial development, and globalization: empirical evidence based on PMG long-run panel estimation

  • Zhaohua Wang
  • Yasir Rasool
  • Muhammad Mansoor Asghar
  • Bo WangEmail author
Research Article


This study investigates the impact of the human capital index, globalization, and financial development on carbon dioxide of grouping OECD countries using pool mean group estimation technique from 1990 to 2015. This study also applies the second-generation cross-sectional augmented Dickey-Fuller and cross-sectional Im, Pesaran, Shin panel (CIPS) unit root, and the latest (Westerlund 2008) cointegration tests for further investigations. The result shows that both the human development index and financial development stimulate environmental improvement by using PMG long-run panel estimation approach. Furthermore, the pairwise Dumitrescu-Hurlin panel causality results prove the two-way causal association between financial development and carbon emissions. The unidirectional causality running from globalization and human development index towards carbon emission is also supported. Based on the aforementioned results, we provide a set of recommendations for policy implication.

Graphical abstract


Financial development Globalization Human development index CO2 emissions OECD countries 


Funding information

This study is supported by the National Science Fund for Distinguished Young Scholars (Reference No. 71625003), Yangtze River Distinguished Professor of MOE, National Key Research and Development Program of China (Reference No. 2016YFA0602504), National Natural Science Foundation of China (Reference No. 91746208, 71573016, 71403021, 71521002, 71774014, 71804010), national social science foundation (Reference No.17ZDA065), Humanities and Social science Fund of Ministry of Education of China (Reference No. 17YJC630145), China Postdoctoral Science Foundation (Reference No. 2017M620648, 2019T120055).


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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.School of Management and EconomicsBeijing Institute of TechnologyBeijingChina
  2. 2.Energy & Environmental Policy ResearchBeijing Institute of TechnologyBeijingChina
  3. 3.Collaborative Innovation Center of Electric Vehicles in BeijingBeijingChina
  4. 4.Beijing Key Lab of Energy Economics and Environmental ManagementBeijingChina
  5. 5.Sustainable Development Research Institute for Economy and Society of BeijingBeijingChina

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