The Impact of Civil Financial Markets on Environmental Quality

Authors

  • Mohammad Mehdi Norouzian Ministry of Road and Urban Planning, Urban Development & Revitalization Organization of Iran, General Director of Supervision on Urban Regeneration Plans, Iran. Author
  • Nima Gheitarani Global Institute of Sustainability, Arizona State University, Tempe, AZ, U.S.A. Author

DOI:

https://doi.org/10.22161/jhed.7.1.8

Abstract

Background and Aim: In the financial development process, financing various projects, including environmental projects, is possible with greater ease and lower cost. Financial development by providing the necessary financial resources to form more equipped and advanced research and development units, as well as the possibility of accessing more efficient and environmentally friendly technologies that require more financial resources, the possibility of attracting foreign investment with pollution. Developed countries, on the other hand, tend to emit their polluting industries to countries with poorer environmental standards. The result of the arrival of this type of foreign direct investment in the host country is an increase in pollution. In this regard, the main purpose of this paper is to investigate the impact of financial markets on air pollution as an indicator of environmental quality in selected middle-income countries. Methods: The present study is applied, causal research in terms of the inferential research method. The method and tool of collecting information and statistical sources is also the method of written documents, electronic information, and recording showed that - Results: The results of model estimation in Isfahan’s environment using the fixed effects method in the group of selected countries in 2015, the ratio of domestic credits granted to the private sector (% of GDP) as an indicator of money market and exchange rate in Isfahan in 2022. As an indicator of environmental quality in Isfahan's second municipality region, the volume of stock market transactions as an indicator of the capital market has a positive and significant effect on the emission of CO2 in the group of selected middle-income countries. In other words, financial development has increased pollution in middle-income countries. The effect of the ratio of domestic credits granted to the private sector (% of GDP) as an indicator of the money market on more than the ratio of stocks exchanged to the volume of stock market transactions as an indicator of the capital market in selected countries.

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Published

2025-02-26

How to Cite

Norouzian , M. M., & Gheitarani, N. (2025). The Impact of Civil Financial Markets on Environmental Quality. International Journal of Humanities and Education Development (IJHED), 7(1), 62-69. https://doi.org/10.22161/jhed.7.1.8