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The paper explores the nexus between greenhouse gas, financial development, energy consumption, trade and urbanization in 34 upper middle income countries from Asia, Europe, Africa and America (South and North) by using panel data from 2001 to 2014. Vector error correction model explored different results for different regions such as the causality of greenhouse gas for Europe and America; financial development for Asia; trade openness for Asia, Europe and America; and urbanization for Africa and America. The causality of greenhouse gas emission was bi-directional with urbanization in America and trade in Europe. The bi-directional causality of trade was observed with financial development in Asia and urbanization in Africa. The generalized method of moment and fully modified ordinary least square explored a direct association of per capita greenhouse gas emission with financial development in Europe; energy consumption in all panels, and renewable energy in Africa and America. But, the relationship of per capita emission was reciprocal with financial development in Asia, Africa and America; renewable energy in Europe; trade in Europe, Africa and America; and urbanization in Asia, Europe and America. The relationship of variables changes from region to region and country to country. A country-based reciprocal effect on per capita greenhouse gas was observed for financial development, renewable energy, trade openness and urbanization for different countries. This paper provides an insight to policy makers to re-structure the financial system, energy usage pattern, trade and urbanization in accordance with the cleaning of environment at country and regional level. [ABSTRACT FROM AUTHOR]

This paper examines the risk transmissions across the green economy indices of three major regions which include US, Europe and Asia. The econometric analyses are conducted using DCC-GARCH and TVP-VAR connectedness approach to evaluate potential spillover effects within the context of oil and gold. Results indicate that green economy indices of US-Europe exhibit the greatest time-varying correlations among the three pairs during much of 2010–2022 consistent with that of the general equity market. However, co-movements during the COVID-19 pandemic period seem to display a change in pattern for green economy indices. The strength of the co-movements between the US and Europe displayed a declining trend, while that between US and Asia was strengthened, suggesting greater interdependence between these two markets. TVP-VAR connectedness analysis revealed that US and Europe dominate the transmission of the shocks across the years in the green economy, similar to that of the equity markets. However, during the pandemic a pronounced shift occurred in green economies when considering the risk transmissions within the context of commodities: oil and gold. While Asian green economy index was persistently a receiver of risk transmission from oil unlike the other two regions, since pandemic, oil displayed an asymmetric effect and has become the net transmitter of risk in negative returns of the green economies of US and Europe. This may reflect the diversion in environmental policies of the two regions in the recent past, and point to the dominance of energy sector in the green economy. These findings have substantial implications for the development of green economy policies and from an investment perspective. [ABSTRACT FROM AUTHOR]

This paper examines the risk transmissions across the green economy indices of three major regions which include US, Europe and Asia. The econometric analyses are conducted using DCC-GARCH and TVP-VAR connectedness approach to evaluate potential spillover effects within the context of oil and gold. Results indicate that green economy indices of US-Europe exhibit the greatest time-varying correlations among the three pairs during much of 2010–2022 consistent with that of the general equity market. However, co-movements during the COVID-19 pandemic period seem to display a change in pattern for green economy indices. The strength of the co-movements between the US and Europe displayed a declining trend, while that between US and Asia was strengthened, suggesting greater interdependence between these two markets. TVP-VAR connectedness analysis revealed that US and Europe dominate the transmission of the shocks across the years in the green economy, similar to that of the equity markets. However, during the pandemic a pronounced shift occurred in green economies when considering the risk transmissions within the context of commodities: oil and gold. While Asian green economy index was persistently a receiver of risk transmission from oil unlike the other two regions, since pandemic, oil displayed an asymmetric effect and has become the net transmitter of risk in negative returns of the green economies of US and Europe. This may reflect the diversion in environmental policies of the two regions in the recent past, and point to the dominance of energy sector in the green economy. These findings have substantial implications for the development of green economy policies and from an investment perspective. [ABSTRACT FROM AUTHOR]