Exploring the moderating role of financial development in environmental Kuznets curve for South Africa: fresh evidence from the novel dynamic ARDL simulations approach

Abstract The extant literature has produced mixed evidence on the relationship between financial development and ecological sustainability. This work addresses this conundrum by investigating development’s direct indirect consequences quality utilizing environmental Kuznets curve (EKC) methodological approach. Our empirical analysis is based novel dynamic autoregressive distributed lag simulations approach for South Africa 1960 2020. results, which used five distinct measures, demonstrate that boosts integrity sustainability over long short terms. In instance of Africa, we additionally confirm validity EKC theory. More importantly, outcomes channels increases energy usage’s role in causing pollution while attenuating detrimental impacts economic growth, trade openness, foreign investment quality. Moreover, presence an inadequate system a requirement basis haven hypothesis (PHH), examine using openness variables. PHH both these variables disappears when crosses specified thresholds. Finally, industrial value addition destroys technological innovation enhances it. research provides some crucial policy recommendations fresh perspectives as it develops national initiatives to support reach its net zero emissions goal.