Green finance and sustainable development in Europe

Figures & data

Table 1. Description of variables.

	Variable	Measure
Environmental degradation	Energy Use	Energy use per capita (kg of oil per capita)
	CO2 Emissions	Carbon dioxide emissions per capita
	Greenhouse Emissions	Greenhouse emissions per capita
	Natural Resource Depletion	Natural Resource Depletion (% of GNI)
Financial development	Financial Development1	Domestic credit to the private sector, percent of GDP
	Financial Development2	Bank credit to the private sector, percent of GDP
	Investment Inflows	Foreign Direct Investment (% of GDP)
Controls	Income Level	GDP per capita, current U.S. dollars
	Institutional Quality	Government effectiveness index (-2.5 weak; 2.5 strong)
	Technology	Mobile phone subscribers, per 100 people
	Population	Population size, in millions
	Urbanization	Urban population (% of total population)
	Education	Secondary school enrollment, percent of all eligible children

Source: World Development Indicators.

Table 2. Summary statistics.

Variable	Observations	Mean	Standard deviation
Energy Use (kg per capita)	1,025	3455.53	2191.03
CO2 Emissions (kt. per capita)	1,035	7.40	3.69
Greenhouse Emissions	884	2.38	4.88
Natural Resource Depletion (% of GNI)	959	0.70	1.63
FD1 (% of GDP)	1,053	70.95	46.78
FD2 (% of GDP)	897	72.24	48.42
FDI (% of GDP)	1,119	7.47	27.48
Income ($ per capita)	1,167	22730.43	21501.64
Governance (−2.5 to 2.5)	840	0.84	0.88
Technology (Mobile Subscriptions per 100)	1,129	74.21	51.69
Population (millions)	1,200	19.96	29.67
Urbanization (% of total population)	1,200	69.34	13.51
Education (% of children in secondary school)	1,067	101.35	16.38

Source: Author’s own calculations.

Table 3. Regression results.

Variables	(1)	(2)	(3)	(4)
	CO2 emissions	Natural resource depletion	Greenhouse emissions	Energy use
FD1	−0.107***	−0.197***	−0.6477*	−0.3809
	(0.0396)	(0.0203)	(0.3449)	(0.2871)
FD2	−0.0785**	−0.204***	−0.6081*	−0.3260
	(0.0397)	(0.0202)	(0.3446)	(0.2873)
FDI	0.00610*	0.00578*	0.0299	0.9752***
	(0.00330)	(0.00298)	(0.0256)	(0.2307)
Income	0.6615***	0.3365***	1.046	0.0295***
	(0.842)	(0.592)	(0.713)	(0.00607)
Governance	−0.908***	−0.503***	−0.2227	0.2578
	(0.249)	(0.143)	(0.1935)	(0.1772)
Technology	0.0126***	−0.000223	0.0038	−0.2340
	(0.00346)	(0.00185)	(0.0027)	(0.2472)
Population	0.0139***	0.0184***	0.0137***	0.1235***
	(0.00418)	(0.00231)	(0.0344)	(3.030)
Urbanization	0.0781***	0.00966	0.0726	0.1120***
	(0.0131)	(0.00833)	(0.0112)	(0.9600)
Education	−0.0313***	−0.00922	−0.02626*	−0.2397***
	(0.0101)	(0.00590)	(0.0851)	(0.7292)
Constant	3.045***	0.565	1.468*	−0.1991***
	(0.923)	(0.495)	(0.7590)	(0.6662)
Observations	574	554	414	529
R-squared	0.416	0.382	0.832	0.480

Standard errors in parentheses.

*** p < 0.01,

** p < 0.05,

* p < 0.1.

Source: Author’s own calculations.

Table 4. DH Granger non-causality test.

Variables	CO2 emissions	Natural resource depletion	Greenhouse emissions	Energy use
FD1	26.29***	2.98***	1.53	2.295
FD2	7.466***	2.34*	2.12*	2.52**
FDI	2.13	0.208	−7.635	2.17**
Secondary School Enrollment	3.18*	4.98*	6.18	3.36*
GDP Per capita	4.836***	2.10**	−0.202	0.389
Governance	3.08*	−0.95	−0.93	−1.376
Technology: Mobile Subscriptions per 100	3.72**	2.66**	2.08*	2.93**
Population	12.6***	2.79**	9.94***	16.9***
Urbanization	12.18***	0.69	10.93***	17.26***

Standard errors in parentheses.

*** p < 0.01,

** p < 0.05,

* p < 0.1.

Source: Authors’ own calculations.

Data statement

Data will be made available on request.