The Role of Money Market Development in the Environmental Pollution: Comparison between High and Lower Middle Income Countries Among OECD Member

During the recent decades, the environment has been damaging by many massive factors. Due to the increase of demand for clean environment and international organizations and countries’ attempts to control the environmental damages, it is more important to consider of factors that affected in environmental degradation. In the meantime, despite the importance of the relationship between carbon dioxide emissions and money market (financial development), this issue has been neglected in the literature. In this study, we investigate the role of money market development in carbon dioxide (co2) emissions. To this purpose, we gather data from some countries among OECD members over the period 2011 -2001, and the results are compared countries with high and lower-middle per capita income. The results show that Money market development and increase in per-capita GDP lead to increase emissions of carbon dioxide in the lower-middle-income countries and reduce the emissions in the countries with high per capita income.