The impact of energy consumption and CO2 emission on the economic and financial development in 19 selected countries

This study investigated the impact of energy consumption on the economic and financial development in 19 countries. These countries were selected due to the fact that the financial development indicators contribute an important share to their total GDP. The panel model was employed taking the period of 1980 to 2008. The results show that energy consumption enables these countries to achieve high economic and financial development. However, the high development that these countries have achieved in the late three decades increased the CO2 emission. It is important that these countries should reduce the level of pollution through utilizing energy protection policies, such as rationing energy consumption and controlling carbon dioxide emissions or increasing the share of clean energy of their total energy consumption.