Investigating the relationship between the development of the banking sector and the emission of polluting gases in Iran with quantile vector autoregression approach

Pishnamaz Mohammadi, Seyed Ziyaaddin; Nahidi Amirkhiz, Mohammadreza; Shafei, Ehsan; Dizaji, Monireh

doi:10.22055/jqe.2024.47235.2641

Investigating the relationship between the development of the banking sector and the emission of polluting gases in Iran with quantile vector autoregression approach

https://doi.org/10.22055/jqe.2024.47235.2641

Articles in Press, Accepted Manuscript
Available Online from 11 March 2025

Quarterly Journal of Quantitative Economics (JQE)

Document Type : Article-Based Dissertations

Authors

Seyed Ziyaaddin Pishnamaz Mohammadi ¹

Mohammadreza Nahidi Amirkhiz ²

Ehsan Shafei ¹

Monireh Dizaji ¹

¹ Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran

² Department of Economics، Faculty of Economics، Azad Islamic University. Tabriz. Iran

Abstract

In order to achieve economic growth, it is necessary to know the factors affecting economic growth and their interrelationships, and one of the discussed topics is the banking sector. The development of industry, the spread of polluting substances, the increase of human population, the creation of new industries and as a result the production of new wastes, despite the fact that it has increased economic growth, has led to the spread of environmental pollution, therefore, considering the importance of the issue, in In this research, the amount of carbon dioxide emission has been investigated as an indicator of environmental pollution, and the purpose of this research is to investigate the relationship between the development of the banking sector and environmental pollution in Iran during the period from 1984 to 2022 using The autoregression model is a quantile vector. The effect of facilities and credits granted to the banking sector on environmental pollution (carbon dioxide emissions) is statistically significant in all deciles.The ratio of the predecessor facility with pollution is negative in all deciles. Also, the relationship between mudarabah facilities and pollution is negative from the first to the fourth decile and positive from the fifth decile to the last decile. The relationship between money supply and pollution is positive in the first and last deciles and negative in the middle deciles. Also, the relationship between contract of reward (Joaleh) facilities and credits granted to the banking sector with the emission of carbon dioxide pollutant is positive in all deciles

Keywords

Banking sector development

Islamic financing

environmental pollution

Quantile vector autoregression

Subjects