FINANCIAL SECTOR DEVELOPMENTS, ECONOMIC GROWTH AND CARBON EMISSIONS IN SELECTED WEST AFRICAN COUNTRIES

ABSTRACT
This study examines the impact of financial development and economic growth on carbon emissions in selected West African countries using annual panel data from 2012 to 2021. The Panel Least Squares (PLS) approach was used to estimate the model. The findings reveal that credit to private sector exerts significant positive effect on carbon emissions while other financial development measures like broad money to GDP, stock market catilalisatin and stock market total value traded were found to have no significant effect on carbon emissions. Also, the empirical results could not confirm any evidence of the Environmental Kuznets Curve (EKC). Based on this finding there is the need for sound policies for more equal economic and financial growth, as well as, environmentally sustainable financial services. According to the findings, the government should prioritize programs that reduce carbon dioxide emissions by strengthening the financial sectors. Also government should consider the role it plays in slowing environmental degradation and hence, directly enhancing environmental quality in the selected West African countries.