Asymmetric Effects of Financial Development on CO2 Emissions in Bangladesh

Depending on how it functions and is organized, the financial system can have a negative, positive, or zero impact environment. For Bangladesh, empirical relationship between development environment, measured in terms of carbon dioxide (CO2) emissions per capita, analysed over period 1980 to 2020. This first such analysis for this country. We perform within non-linear bound testing framework while controlling changes energy consumption, gross domestic product, trade volume. There are two key findings. One, we find that CO2 capita cointegrating, with direction cointegration running from emissions. Two, positive negative asymmetric impacts long short run. The implications these findings discussed regarding their attendant environmental policy implications.