المستخلص: |
This paper aims to assess the impact of financial sector development on carbon emissions in Algeria during the period 1990- 2022 using the distributed lag autoregressive model. To achieve the research objective, carbon emissions were used as the dependent variable, while the independent variable representing the evolution of the financial sector was constructed by integrating indicators of financial sector development using the principal component analysis method. Additionally, two mediating variables, foreign direct investment and economic openness, were included to enhance the explanatory power of the model. The study's results revealed a statistically significant positive relationship between the financial sector development index and carbon emissions in Algeria during the study period. Therefore, the study recommends that policymakers in Algeria strive to strike a balance between economic growth aspirations and environmental considerations.
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