Islamic Finance and Environmental Sustainability: Empirical Insight from OIC Countries
Environmental degradation remains a significant global challenge, particularly in the Organization of Islamic Cooperation (OIC) countries. This study primarily examines the impact of Islamic finance, proxied by two indicators, namely Islamic financial assets and Islamic banking financing, and other...
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| Main Authors: | , , , , , , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2024-11-01
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| Series: | International Journal of Energy Economics and Policy |
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| Online Access: | https://mail.econjournals.com/index.php/ijeep/article/view/17400 |
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| _version_ | 1832088006203277312 |
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| author | Mohammad Iqbal Irfany Annisa Dwi Utami Deni Lubis Fiona Ramadhini Lalacitra Fitri Suwari Nisrina Rafelia Maula Fitriyatustany Fitriyatustany Daffa Aqomal Haq |
| author_facet | Mohammad Iqbal Irfany Annisa Dwi Utami Deni Lubis Fiona Ramadhini Lalacitra Fitri Suwari Nisrina Rafelia Maula Fitriyatustany Fitriyatustany Daffa Aqomal Haq |
| author_sort | Mohammad Iqbal Irfany |
| collection | DOAJ |
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Environmental degradation remains a significant global challenge, particularly in the Organization of Islamic Cooperation (OIC) countries. This study primarily examines the impact of Islamic finance, proxied by two indicators, namely Islamic financial assets and Islamic banking financing, and other variables including Gross Domestic Product (GDP), Foreign Direct Investment (FDI), urbanization, renewable energy adoption, and forest area, on CO2 emissions. This study revealed that Islamic financial assets had a negative impact on CO2 emissions, highlighting their importance in supporting green investments and sustainability. However, Islamic banking financing has little influence on emissions reduction, most likely due to carbon-intensive initiatives. Furthermore, GDP growth increases emissions, although FDI, urbanization, and forest areas help to lower them. These findings underscore Islamic finance's critical role in fostering sustainable development, as well as the necessity for better green Islamic financing policies in OIC member nations. The findings also provide important insights for policymakers working to balance economic growth with environmental sustainability in Islamic finance.
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| format | Article |
| id | doaj-art-779eb585469547cb89dff493d58aebb6 |
| institution | Kabale University |
| issn | 2146-4553 |
| language | English |
| publishDate | 2024-11-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj-art-779eb585469547cb89dff493d58aebb62025-02-06T01:05:46ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532024-11-0114610.32479/ijeep.17400Islamic Finance and Environmental Sustainability: Empirical Insight from OIC CountriesMohammad Iqbal Irfany0Annisa Dwi Utami1Deni Lubis2Fiona Ramadhini3Lalacitra Fitri Suwari4Nisrina Rafelia Maula5Fitriyatustany Fitriyatustany6Daffa Aqomal Haq7Faculty of Economics and Management, IPB University, Bogor, Indonesia.Faculty of Economics and Management, IPB University, Bogor, Indonesia.Faculty of Economics and Management, IPB University, Bogor, Indonesia.Faculty of Economics and Management, IPB University, Bogor, Indonesia.Faculty of Economics and Management, IPB University, Bogor, Indonesia.Faculty of Economics and Management, IPB University, Bogor, Indonesia.Faculty of Economics and Management, IPB University, Bogor, Indonesia.Faculty of Economics and Management, IPB University, Bogor, Indonesia. Environmental degradation remains a significant global challenge, particularly in the Organization of Islamic Cooperation (OIC) countries. This study primarily examines the impact of Islamic finance, proxied by two indicators, namely Islamic financial assets and Islamic banking financing, and other variables including Gross Domestic Product (GDP), Foreign Direct Investment (FDI), urbanization, renewable energy adoption, and forest area, on CO2 emissions. This study revealed that Islamic financial assets had a negative impact on CO2 emissions, highlighting their importance in supporting green investments and sustainability. However, Islamic banking financing has little influence on emissions reduction, most likely due to carbon-intensive initiatives. Furthermore, GDP growth increases emissions, although FDI, urbanization, and forest areas help to lower them. These findings underscore Islamic finance's critical role in fostering sustainable development, as well as the necessity for better green Islamic financing policies in OIC member nations. The findings also provide important insights for policymakers working to balance economic growth with environmental sustainability in Islamic finance. https://mail.econjournals.com/index.php/ijeep/article/view/17400Islamic financeCO2 emissionsenvironmental sustainabilityrenewable energyOIC countries |
| spellingShingle | Mohammad Iqbal Irfany Annisa Dwi Utami Deni Lubis Fiona Ramadhini Lalacitra Fitri Suwari Nisrina Rafelia Maula Fitriyatustany Fitriyatustany Daffa Aqomal Haq Islamic Finance and Environmental Sustainability: Empirical Insight from OIC Countries International Journal of Energy Economics and Policy Islamic finance CO2 emissions environmental sustainability renewable energy OIC countries |
| title | Islamic Finance and Environmental Sustainability: Empirical Insight from OIC Countries |
| title_full | Islamic Finance and Environmental Sustainability: Empirical Insight from OIC Countries |
| title_fullStr | Islamic Finance and Environmental Sustainability: Empirical Insight from OIC Countries |
| title_full_unstemmed | Islamic Finance and Environmental Sustainability: Empirical Insight from OIC Countries |
| title_short | Islamic Finance and Environmental Sustainability: Empirical Insight from OIC Countries |
| title_sort | islamic finance and environmental sustainability empirical insight from oic countries |
| topic | Islamic finance CO2 emissions environmental sustainability renewable energy OIC countries |
| url | https://mail.econjournals.com/index.php/ijeep/article/view/17400 |
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