Paper Title
Does Financial Development Impede Environmental Quality?

Abstract
Greater financial development can facilitate financial at lower costs investment in environmental projects. Since much of environmental protection will be a public sector activity the ability to raise such financing is especially important for governments. However, the effects of financial development on CO2 are not yet understood properly. The purpose of this paper is to analyze the effect of financial development on CO2 emission by investigating the validity of the Environmental Kuznets Curve (EKC) hypothesis. A number of econometric techniques: dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS) and the pooled mean group estimation (PMG) are applied in order to estimate the long-run relationship between the variables. The EKC shows the inverted-U relationship between GDP per capita and CO emission per capita. Keywords – Financial Development, Environmental Quality, Panel Data