Financial development, industrial structure and environmental sustainability: new evidence from Japan

Figures & data

Table 1. Data description and definitions.

	Mean	Median	Maximum	Minimum	Std. Dev.	Skewness	Kurtosis	Jarque-Bera	Probability	Definitions
CO2	13.98	13.97	14.04	13.89	0.036	−0.392	3.112	0.679	0.712	CO2 emissions (kt)
GHGs	14.05	14.05	14.11	13.97	0.033	−0.651	3.543	2.157	0.340	Total greenhouse gas emissions (kt of CO2 equivalent)
FD	2.489	2.470	2.590	2.419	0.045	0.461	2.170	1.667	0.434	Domestic credit provided by financial sector (% of GDP)
ISU	0.307	0.303	0.371	0.265	0.031	0.702	2.569	2.336	0.311	Ratio of output of tertiary industry to secondary industry
GDP	4.519	4.519	4.561	4.480	0.024	0.145	1.890	1.427	0.490	GDP per capita (constant 2015 US$)
EC	3.579	3.593	3.611	3.535	0.028	−0.323	1.359	3.368	0.186	Energy use (kg of oil equivalent per capita)
Internet	61.67	74.85	93.18	1.594	30.98	−0.754	2.131	3.285	0.194	Individuals using the Internet (% of the population)

Source: Author's Estimation.

Table 2. Unit root testing.

	DF-GLS		PP		ADF
	I(0)	I(1)	I(0)	I(1)	I(0)	I(1)
CO2	−0.298	−1.879*	−1.023	−4.325***	−1.905	−5.998***
GHGs	−0.201	−2.694***	−0.987	−2.654*	−1.602	−4.302***
FD	0.512	−4.320***	1.021	−4.112***	0.421	−4.012***
ISU	−1.023	−5.657***	−1.754	−5.324***	−1.578	−5.785***
GDP	−0.954	−4.023***	−1.452	−4.255***	−1.425	−4.546***
EC	0.345	−4.321***	−0.475	−4.325***	−0.452	−4.325***
Internet	−1.703*		−3.321**		−3.274**

Note: ***p < 0.01; **p < 0.05; *p < 0.1.

Source: Author's Estimation.

Table 3. Short and long-run estimates of CO₂ and G.H.G.

	CO2				GHGs
Variable	Coefficient	Std. Error	t-Statistic	Prob.*	Coefficient	Std. Error	t-Statistic	Prob.*
Short-run
FD	0.425	0.428	0.995	0.336	0.452	0.388	1.166	0.262
ISU	−0.135**	0.065	−2.018	0.047	−0.116**	0.052	−2.012	0.049
ISU(−1)	−1.076**	0.499	−2.155	0.048	−1.062	0.461	−2.306	0.036
EC	1.159*	0.668	1.734	0.103	0.993*	0.602	1.670	0.009
GDP	0.108	0.817	0.133	0.896	0.054	0.768	0.070	0.945
Internet	−0.108	0.097	−1.123	0.279	−0.109	0.091	−1.204	0.247
Long − run
FD	−1.611*	0.962	−1.675	0.115	−1.295**	0.652	−1.987	0.063
ISU	−3.112*	1.768	−1.761	0.096	−2.821*	1.708	−1.687	0.101
EC	1.618	1.336	1.211	0.245	1.159*	0.668	1.734	0.103
GDP	1.655**	0.781	2.119	0.049	−1.295**	0.652	−1.987	0.063
Internet	−0.633***	0.215	−2.951	0.010	−0.491**	0.229	−2.144	0.049
C	6.068	9.376	0.647	0.527	9.835	10.503	0.936	0.362
Diagnostics
F-test	12.20***				5.325***
ECM(−1)	−0.475***	0.087	−5.460	0.000	−0.459***	0.085	−5.370	0.000
LM	1.203				0.658
RESET	1.004				0.147
CUSUM	S				S
CUSUM-sq	S				S

Note: ***p < 0.01; **p < 0.05; *p < 0.1.

Source: Author's Estimation.