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On the asymmetric effects of insurance sector development on environmental quality: challenges and policy options for BRICS economies

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Abstract

This study contributes to the empirical literature by analyzing the dynamic impacts of insurance sector development on CO2 emissions of emerging economies for the period of 1991–2018. By using the nonlinear autoregressive distributed lag (NARDL) approach, our findings show that increased life insurance sector development significantly reduces CO2 emissions of Russia, China and South Africa and decreased life insurance sector development significantly enhances CO2 emissions of Russia only. While China and South Africa have also reduced CO2 emissions due to the negative shock of life insurance sector development in the long run. Findings also show that increased non-life insurance sector development boosts CO2 emissions in Russia and China, while negatively significant in case of South Africa. Moreover, decreased non-life insurance sector development reduces CO2 emissions in Russia, India and China and positively significant in case of South Africa in long run. The short-run outcomes are also country-specific in our analysis. Finally, we provide some helpful suggestions for investors, and consumers and policy-makers.

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Data availability

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

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Funding

This research was sponsored by the Innovation Platform OpenFund Project of Hunan Education Department, China (19K087).

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Authors and Affiliations

  1. College of Public Administration, Xiangtan University, Xiangtan, 411105, Hunan, China

    Muhammad Rizwanullah, Muhammad Nasrullah & Lizhi Liang

Authors
  1. Muhammad Rizwanullah
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  2. Muhammad Nasrullah
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  3. Lizhi Liang
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Contributions

Muhammad Rizwanullah: conceptualization, formal analysis, investigation, writing the original draft, data collection, software, and methodology. Muhammad Nasrullah: writing the review, investigation, software, and methodology. Lizhi Liang: supervision, investigation, data correction, formal analysis, methodology, and editing

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Correspondence to Muhammad Nasrullah or Lizhi Liang.

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This is an observational study. We confirmed that no ethical approval is required. Consent to participate is not applicable.

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The authors declare no competing interests.

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Responsible Editor: Eyup Dogan

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Rizwanullah, ., Nasrullah, M. & Liang, L. On the asymmetric effects of insurance sector development on environmental quality: challenges and policy options for BRICS economies. Environ Sci Pollut Res 29, 10802–10811 (2022). https://doi.org/10.1007/s11356-021-16364-2

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