This study investigates the effect of economic growth, financial development, and globalization on carbon Emissions in 52 African countries from 1997 to 2002. Additionally, it considers the pivotal role of energy consumption and population size as controlling factors impacting carbon emissions in Africa. To evaluate the influence of globalization and financial development on carbon emissions, a robust two-step system-generalized method of moment analysis was used, applying the KOF Globalization Index and the IMF's Financial Development Index. The findings of this study offer several critical insights into the dynamics of carbon emissions in African economies. The analysis shows that carbon emissions are positively related to economic growth, energy consumption, and population size, which supports the Environmental Kuznets Curve hypothesis. The study also highlights that globalization, financial development, and financial institutions have a linearly increasing impact on carbon emissions, with financial markets having an insignificant effect. Intriguingly, the study discovers nonlinear relationships, with squared values of globalization and its sub-indices related to economic and social dimensions and squared financial development and its sub-indices demonstrating a negative influence. Additionally, the study underscores the moderating role of globalization, financial development, and their respective sub-indices in influencing carbon emissions. The policy recommendation of these findings highlights the importance of sustainable practices, such as green financing and collaborative partnerships, for more environmentally sustainable growth.
Anahtar Kelimeler: CO2 Emission, Economic Growth, Financial Development, Globalization, GMM
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