New insight into examining the role of financial development in economic growth effect on a composite environmental quality index.

The inclusion of an index, which can be the representative of environmental quality from different aspects, seems to be of paramount significance. This issue is a major challenging one in the economic-environmental literature. This study investigates the role of financial development in economic growth effect on the composite environmental quality index (CEQI) in two groups of selected Organization of the Petroleum Exporting Countries (OPEC) and Organization for Economic Co-operation and Development (OECD) countries.

Investigating marginal effect of economic growth on environmental quality based on six environmental indicators: does financial development have a determinative role in strengthening or weakening this effect?

Given the complexity of the correlation of economic growth with financial development, and their interactive impacts on environmental quality, this study attempted to present new insights into indecisive outcomes from the contribution of financial development in determining the impressionability of environmental indicators under economic growth conditions. Previous studies only employed a single environmental indicator for analyzing the correlation between economic factors and environmental quality. However, six environmental indicators are adopted in this study to evaluate environmental quality and to reach major goals of this research.