We study the impact of financial market development on industrial pollution in a large panel of countries and industries over the period 1974-2013. We find a strong positive impact of credit markets, but a strong negative impact of stock markets, on aggregate CO2 emissions per capita....

The 2015 Paris Climate Conference put finance at the heart of the debate on environmental degradation. But what exactly is the relationship between finance and environmental pollution? This paper analyses the mechanisms that connect financial development, industrial composition and environmental...

We study the relation between financial structure and carbon emissions in a large panel of countries and industries. For given levels of economic and financial development, emissions per capita are lower in economies that are relatively more equity-funded. Industry-level analysis reveals two...