Conference Papershttp://hdl.handle.net/20.500.14131/3802024-02-03T21:28:28Z2024-02-03T21:28:28ZA Bayesian Approach to Analyse the Nexus Between the Environmental and Financial Factors to Affect Energy Efficiency in the GCC RegionShaheen, Rozinahttp://hdl.handle.net/20.500.14131/11822023-12-15T01:50:36Z2023-02-04T00:00:00ZA Bayesian Approach to Analyse the Nexus Between the Environmental and Financial Factors to Affect Energy Efficiency in the GCC Region
Shaheen, Rozina
Energy, being a significant input in the production process is considered an important element in the socio-
economic development of a country. In this context, global economy is concentrating on attaining financial stability
through increased energy efficiency and plummeting the energy intensity. Efficient use of energy enables the countries
to improve their trade balance whereas it helps to reduce operating costs at micro level. Using energy-efficient
techniques can reduce the environmental risks posed by the higher level of economic activity. Similarly, development
of financial sector stimulates economic efficiency through the expansion in the financial activities (Sadorsky, 2010).
Financial development helps to reduce cost of borrowing and financial risk, thereby creating transparency between
lenders and borrowers. In addition, financial sector development facilitates the acquisition of sophisticated energy
efficiency products and technology.
However, with the rapid economic development, the environmental degradation has become a focus point for the
nations across the globe. The feedback effects from environment to economic growth have stimulated the researchers
to investigate the reasons for environmental dilapidation and determine the solutions for environmental conservation.
Many of these research studies are encircled around the environmental Kuznets curve (EKC) hypothesis (Grossman
&Krueger, 1991) which elaborates the linkages between the environmental degradation and economic growth. Middle
Eastern economies are heavily reliant on the energy-based revenues and any curb on the energy production directly
affects their economic growth in the region.
Furthermore, financial system in the Middle Eastern region is technologically advanced with strong regulatory
frameworks related to data protection, consumer protection, cybersecurity, and anti-money laundering. These regional
characteristics provide a strong base to assess the existence of environmental Kuznets curve in the region and to
examine the nexus between the financial sector development, economic growth, energy efficiency and Co2 emission
in the region.
The relationship between the environmental quality and economic growth is explored by various studies such as
Jaeger et al. (1995), Tucker (1995), Barbier (1997), Horvath (1997), Ansuategi et al. (1998), List and Gallet (1999),
Stern and Common (2001), Roca (2003), Dinda and Coondoo (2006), Coondoo and Dinda (2008) and Akbostanci et
al. (2009). However, this research is unique as it is first to examine the environmental Kuznets curve hypothesis for
the oil based Middle Eastern economies while using a conditionally homogenous autoregressive model for the panel
of Middle Eastern economies. This model considers homogeneity across the cross-sectional units with identical
structural characteristics. The panel conditionally homogenous vector autoregressive specification permits the
heterogeneity in the dynamic panel data set and evaluates the relationship between the observed heterogeneity across
the units and their structural characteristics
2023-02-04T00:00:00ZThe Role of Sukuk in Sustainable DevelopmentAlmadani, Hananhttp://hdl.handle.net/20.500.14131/7702023-06-21T07:35:32ZThe Role of Sukuk in Sustainable Development
Almadani, Hanan
Sukuk: Driving Sustainable Economic Development
Abstract
Sukuk, or Islamic bonds, have gained popularity as a Shariah-compliant approach for enterprises to obtain capital. In accordance with the principles of Islamic finance, Sukuk plays a key role in supporting sustainable development in addition to its financial rewards. Sukuk may assist fund initiatives that benefit society as a whole, increase risk-sharing among investors, and promote financial inclusion. A recent example of a green Sukuk issued by the Indonesian government highlights the capacity of Sukuk to fund environmentally beneficial initiatives. Sukuk may also be used to alleviate some of the issues that traditional finance faces, such as financial crises, and to enhance accountability and transparency in financial transactions. This article examines the relevance of Sukuk in Islamic finance and its role in sustainable development. This study focuses on the function and influence of Sukuk on human welfare and sustainable development. To attain human well-being and sustainable development, Sukuk investments must be for the benefit of everyone, including people, institutions, society, and the whole nation. The research shows that Shari'ah supervisory boards should focus more on the content when developing Sukuk in order to assist Islamic finance in reaching Maqasid AlShari'ah.
Keywords: Sustainable development Maqasid AlShari'ah, Sukuk, Islamic finance, human well-being, safeguarding wealth.