Decoding the complex relation of financial development and carbon emission using bibliometric analysis

Abstract

The intensifying global concern over climate change has spurred research into the intricate relationship between financial development (FD) and carbon emissions (CE). Although studies have explored the impact of FD on CE, the nature of the association still needs to be discovered, with existing literature offering a mosaic of findings. Therefore, this Study delves into the complex relationship by scrutinizing empirical research on FD proxies from the Scopus and WOS databases, covering 2014 to 2023. The Bibliometric analysis identifies China as the leading contributor to scientific research on FD and CE, followed by Turkey and Pakistan. Noteworthy contributors include Muhammad Shahbaz, Cyprus International University, and Environmental Science and Pollution Research. The study reveals a consistent surge in publications on FD and CE, reflecting growing global research from 2019 to 2023. Furthermore, it reveals that various factor, including economic growth patterns, energy consumption trends, and environmental regulations, likely influence FD’s impact on CE. These findings emphasize a nuanced understanding of the FD and CE relationship. Future research should aim to develop a robust theoretical framework to capture the intricate interplay between FD and CE, providing insights for policy decisions addressing climate change and sustainable economic growth.

IMPACT STATEMENT

The intricate nexus between financial development and carbon emissions has emerged as a pivotal research frontier in environmental sustainability. This study, “Decoding the Complex Relation of Financial Development and Carbon Emissions Using Bibliometric Analysis,” employs a novel methodological approach to elucidate the multifaceted nature of this relationship. Leveraging the analytical prowess of bibliometrics, we navigate the vast corpus of existing research, meticulously mapping the key thematic nodes and intricate interconnections; this enables us to discern the field’s dominant theoretical paradigms and empirical findings. Our analysis reveals a nuanced and often contradictory landscape where the impact of financial development on carbon emissions is contingent upon a constellation of contextual factors. While some studies posit a linear relationship, suggesting financial growth exacerbates environmental degradation through heightened economic activity, others contend that well-developed financial systems can facilitate the diffusion of clean technologies and foster investments in renewable energy infrastructure, ultimately mitigating carbon footprints. These findings underscore the imperative to move beyond simplistic narratives and embrace a more holistic understanding of the interplay between financial systems and environmental outcomes. Policymakers task crafting nuanced regulatory frameworks that incentivize sustainable financial practices and channel investments toward green initiatives. Furthermore, academic inquiry must continue to unravel the intricate mechanisms through which financial development influences environmental performance, paving the way for developing evidence-based solutions. A collective effort is required to navigate the complex nexus between financial development and carbon emissions. We can forge a path toward a future where economic prosperity and environmental well-being coexist in harmonious equilibrium by fostering interdisciplinary dialogue, embracing innovative research methodologies, and implementing effective policy interventions.

Keywords:

• Carbon emission
• financial development
• bibliometric analysis
• citation analysis
• keyword analysis

REVIEWING EDITOR:

• Collins Ntim, University of Southampton, United Kingdom of Great Britain and Northern Ireland

SUBJECTS:

• Accounting; Environmental Accounting; Systematic Review

1. Introduction

Climate change is widely recognized as a paramount issue of the 21^st century, possessing extensive consequences for the long-term viability of life on Earth (Rehman et al., 2023). The increasing trajectory of Earth’s atmospheric conditions has presented unparalleled difficulties for human and non-human populations. This phenomenon is widely attributed to the rapid industrialization that has unfolded in recent decades, resulting in a significant surge in CO2 emissions and consequentially elevating world temperatures. Based on statistical data, it is evident that there has been a considerable increase in worldwide carbon dioxide (CO2) emissions, reaching a new high of more than 36.8 billion tonnes (International Energy Agency, 2023). The persistent upward trajectory witnessed in the global economy, marked by an annual growth rate of 3 to 4 percent and a steadily growing population, also presents a significant challenge to preserving environmental sustainability. This is primarily due to the escalating demand for energy resources that precedes such expansion (Kirikkaleli et al., 2021). Despite the successful completion of several global conferences and deals aimed at decreasing greenhouse gas emissions, a continuous increase trajectory in the magnitude of these emissions persists. However, the realization of energy conservation and emission reduction is contingent upon advancing a low-carbon economy, and this pursuit is inherently interconnected with financial development. The role of finance is crucial in effectively allocating funds, promoting industrial restructuring, and improving the marginal productivity of capital in modern economic systems (Du et al., 2017; Kliman & Williams, 2014). Many experts have researched the intricate relationship between regional financial development and the endeavor to establish a low-carbon economy. The relationship between financial development and CO2 emissions is a subject of ongoing scholarly discourse, as academics have yet to reach a conclusive agreement (Jiang & Ma, 2019; Rjoub et al., 2021). Financial development can play a pivotal role in facilitating the allocation of investments toward research and development (R&D) activities and attracting appropriate investments that enhance environmental quality (Hayat et al., 2018).

Furthermore, scholars contend that the presence of a sophisticated financial industry can play a role in diminishing the expenses associated with credit, promoting more significant levels of investment, decreasing carbon dioxide emissions, and restraining energy usage. This is achieved through the facilitation of financial resources for the procurement of efficient technologies that mitigate carbon emissions. Nevertheless, it is essential to acknowledge the presence of counterarguments in the scholarly discourse. Some researchers argue that financial development contributes to economic expansion, which increases energy consumption and subsequently raises carbon emissions (Aslan et al., 2014; Shahbaz et al., 2016). Notwithstanding these viewpoints, other scholars argue that financial development either reduces (Dogan & Seker, 2016) or has no observable effect on the increase of carbon emissions (Maji et al., 2017; Omri et al., 2015). Therefore, it can be argued that studies based on Financial Development and carbon emissions are growing. However, most studies tend to adopt a narrow emphasis by concentrating on specific areas or challenges within the field. Consequently, there needs to be more research dedicated to describing the present state of carbon emission and financial development, identifying trending topics, and predicting future directions. Hence, this study aims to fill this gap by conducting a Bibliometric analysis of the present state of studies based on the relationship between Financial Development and Carbon Emission.

Bibliometrics is a method for assessing and monitoring progress in a specific discipline through disaggregated data, including citations, author affiliations, keywords, topics discussed, and methods used for published research in the discipline, using basic and advanced statistical techniques (McBurney & Novak, 2022). Szomszor et al. (2021) state that ‘bibliometrics metrics is the study and measurement of the publication patterns of all forms of written communication and their authors.’ Bibliometric methods complement traditional and structured literature review methods and improve the objectivity of these types of studies (Koseoglu et al., 2016). Arguably, bibliometrics extends to almost all scientific fields and receives increasing attention and application in the humanities and social sciences (Jia & Mustafa, 2022). Recently, there has been a notable increase in applying bibliometric methodologies within climate change research.

Nevertheless, a discernible deficiency exists in the realm of research endeavors that are specifically focused on delineating the current status of carbon emission and Financial Development research, elucidating emerging themes, and prognosticating prospective trajectories. In order to fill this void in the existing research, this study sought to achieve the following objectives: Initially, bibliometric methods were employed to extensively evaluate the present state and evolution of research about Financial Development and Carbon emission. The study examined the number of publications, their spatial dispersion, prominent scholarly journals, authors, institutions, and papers with significant citation rates. Furthermore, we evaluated Bradford’s law and the extensive research capacities of various nations. Additionally, we employed word-clustering, frequency, and co-occurrence analyses to reveal the area’s dominant study themes. Finally, we analyzed the trend topics within this domain. This attempt facilitates knowledge acquisition for fellow scholars by providing insights into cutting-edge topics in this field. Finally, we provided suggestions and delineated the limitations associated with research on Carbon emissions and Financial Development.

In summary, this study contributes to the existing body of research in the following ways: It addresses the dearth of research focused on evaluating trends in Carbon emission and Financial development. Through in-depth keyword analyses, we identified current focal points within this realm, aiding researchers in comprehending the forefront topics. Additionally, our analytical findings provide valuable guidance for shaping the planning and execution of future research endeavors in this field.

This study comprises five sections contributing to our understanding of the subject. The ‘Introduction’ establishes the study’s goals, the main focus, and what makes this paper unique. The ‘review of literature’ section provides a detailed overview of the theories and important insights related to the topic. It reviews previous research in this area. In the third part, i.e. Research Methodology, this section explains its goals, research methods, and how data is analyzed, giving a clear plan for the study. Additionally, the bibliometric study discusses the results in ‘Results and Discussion’, revealing the scholarly context around it. The study also acknowledges the direction for future research and limitations in a dedicated section, recognizing the study’s boundaries.

2. Literature review

The primary goal of every country is to attain sustainable economic development while safeguarding the environment to ensure the well-being of both present and future generations. Several studies have described the various sources and associated carbon emissions with various activities (Sharma, 2011). Researchers have also discussed the link between the financial development (FD) sector and CO₂ emissions worldwide (Shahbaz, 2013). This relation is widely investigated in both theoretical and empirical perspectives. Nevertheless, empirical studies have demonstrated that the relationship between financial development and carbon emissions is not uniform (Jiang & Ma, 2019).

Additionally, Previous Scholarly literature has shown that the impact of financial development on carbon emissions varies across different economies (Abid et al., 2022; Jiang & Ma, 2019; Sunday Adebayo et al., 2022). Policymakers face challenges in accurately forecasting FD’s positive or negative effects on CO2 emissions (Acheampong, 2019). These results may vary depending on the sample size, an econometric approach, and the use of proxies (Amin et al., 2020). The literature presents two views regarding the relationship between financial development and carbon emission (Amin et al., 2020).

One view posits that the advancement of the FD sector exacerbates environmental degradation due to significant CO2 emissions (Abid et al., 2022; Jiang & Ma, 2019; Sunday Adebayo et al., 2022). These studies discovered that increased financial sector activity and the usage of non-renewable energy sources both contribute to environmental degradation (Jiang & Ma, 2019; Lei et al., 2022; Sunday Adebayo et al., 2022). From a global viewpoint, Jiang & Ma (2019) showed that financial development could significantly increase carbon emissions in developing and emerging markets. However, developed countries saw little impact on carbon emissions from financial development. Abdul and Khan (2019) also empirically evaluated the relationship between using renewable energy sources, environmental degradation, and overall energy consumption. Sunday Adebayo et al. (2022) identified both emission-reducing and emission-increasing effects of financial development in MINT countries. Lei et al. (2022) demonstrated that financial development increases carbon emissions and economic growth. Moreover, Qiao et al. (2023) confirms that financial development significantly impacts the long-term carbon emission intensity of energy use, causing it to surge.

However, the second view demonstrates a positive relationship between FD and environmental sustainability (Abid et al., 2022; Farooq et al., 2022; Khan et al., 2021; Shang et al., 2022). According to the second view, improving the financial sector can simultaneously boost the economy and lessen environmental damage (Khan et al., 2021). It allows businesses to invest in cleaner technology, which is crucial in lowering carbon emissions. FD makes more research and development of environmentally friendly technologies possible, which helps ensure the planet’s long-term viability (Shang et al., 2022). Furthermore, developed financial systems are an outcome of a healthy, financially developed economy; by promoting eco-friendly approaches like the use of cleaner technology in energy-intensive businesses, FD contributes to a healthy environment by supporting eco-friendly practices such as the employment of cleaner technology in energy-intensive industries (Usman & Balsalobre-Lorente, 2022; Usman & Makhdum, 2021). In other words, a strong and healthy financial sector encourages investment in green technologies that reduce CO2 emissions (Abid et al., 2022; Farooq et al., 2022). Saqib et al. (2024) highlight that financial development, environmental technologies, and renewable energy have the potential to be productive approaches for bringing down carbon emissions. Nevertheless, these contracting results are the foundation for further research on the relationship between financial development and carbon emissions to reach a consensus.

Additionally, Rigorous analysis of literature depicts that a large number of studies conducted on Bibliometric Analysis considering Carbon emissions (Liang et al., 2023; Liu & Li, 2020; Niu et al., 2022; Su et al., 2020; Sun et al., 2022; Tian et al., 2018; Zeng et al., 2021; Zhang et al., 2023;) and financial development (Kumar et al., 2020; Qian & Han Wang, 2021; Rahman et al., 2022; Zabavnik & Verbič, 2021). However, these studies have been conducted separately. In addition, several studies (Anwar et al., 2022; Koondhar et al., 2021; Sarkodie & Strezov, 2019) have conducted bibliometric analysis under the umbrella topic of the Environmental Kuznets curve. Additionally, it has been observed that large number of studies such as (Acheampong et al., 2020; Alam et al., 2022; Dogan & Seker, 2016; Gokmenoglu et al., 2015; Hong Vo et al., 2021; Indriastuti & Chariri, 2021; Jiang & Ma, 2019; Ozturk & Acaravci, 2013; Shahbaz et al., 2021; Sunday Adebayo et al., 2022; Tsaurai, 2019; Zaidi et al., 2019; Zhang, 2011) have been conducted on the relation between Financial Development and Carbon emissions. Nonetheless, no study on bibliometrics analysis was conducted to examine the nexus of Financial Development and Carbon Emission. Furthermore, in light of the increasing prevalence of FD and Carbon emissions studies, it was determined that a bibliometric study needed to be conducted, focusing specifically on papers about this field.

We employed a methodical strategy in selecting literature, which was then subjected to rigorous bibliometric analysis and a systematic literature review (SLR) in order to address a set of research questions (RQs):

RQ 1. What is the prevailing research trend in this field?

RQ 2. What are the primary sources and countries have had a significant influence on the existing literature?

RQ3. According to citations in this research domain, which are the most influential articles (MIA)?

RQ4. Who are the prominent authors, and what is their affiliation in this study area?

RQ5. What are the most used keywords in this research domain?

RQ6. What is the scope for future research?

3. Methodology

3.1. Database and research strategy

The initial attempt to gain deep insight into the FD-Carbon emission-related literature was made on January 15, 2023. This endeavor involved collecting author keywords from many articles, including empirical and literature reviews. The results of this research led to the identification of several author key terms for both FD and CE. On January 28, 2023, a subsequent attempt was made to retrieve data from the Scopus database using the identified keywords. The procedure of extracting the data was then continued by further attempts consisting of trial and error till February 5, 2023. On the other hand, on January 8, 2023, another attempt was made to incorporate a few additional keywords indicated by the reviewer. The terms ‘Carbon emission*’ and ‘CO2’ were used interchangeably throughout the entire field (TITLE-ABS-KEY).

At the outset, Scopus recorded a total of 10237 publications. By restricting the study to ‘Articles’ and ‘Journals’ written in ‘English’, and focusing on the top 20 carbon emitter countries, we were able to control for variations in the documents. As a result, a total of 456 documents were obtained from Scopus. Similarly, an initial count of 1185 publications were documented from the Web of Science. Subsequently, after implementing the specified constraints, the final count of recorded publications amounted to 608. The query string used in data extraction as follows: ‘TITLE-ABS-KEY’ (((‘financial development’ OR ‘stock market development’ OR ‘banking development’ OR ‘financial sector development’ OR ‘financial liberalization’ OR ‘financial depth’ OR ‘financial structure’ OR ‘financial access’ OR ‘financial repression’ OR ‘bond market development’ OR ‘financial system’ OR ‘stock market’ OR ‘financial market’ OR ‘financial market development’ OR ‘financial institution’ OR ‘financial institutions development’ OR ‘fintech’ OR ‘financial technologies’ OR ‘financial regulations’) AND (‘Carbon’ OR ‘CO2’ OR ‘Carbon Dioxide’ OR ‘Carbon Emissions’ OR ‘Greenhouse Gases’ OR ‘Carbon Reduction’ OR ‘Degradation’))) AND (Limit-To (Pubstage, ‘final’)) AND (Limit-To (OA, ‘all’) OR Limit-To (OA, ‘publisher full gold’) OR Limit-To (OA, ‘publisher hybrid gold’) OR Limit-To (OA, ‘publisherfree2read’) OR Limit-To (OA, ‘repository’)) AND (Limit-To (Affilcountry, ‘China’) OR Limit-To (Affilcountry, ‘United Kingdom’) OR Limit-To (Affilcountry, ‘United States’) OR Limit-To (Affilcountry, ‘Turkey’) OR Limit-To (Affilcountry, ‘Australia’) OR Limit-To (Affilcountry, ‘India’) OR Limit-To (Affilcountry, ‘Germany’) OR Limit-To (Affilcountry, ‘France’) OR Limit-To (Affilcountry, ‘Canada’) OR Limit-To (Affilcountry, ‘Saudi Arabia’) OR Limit-To (Affilcountry, ‘Italy’) OR Limit-To (Affilcountry, ‘Russian Federation’) OR Limit-To (Affilcountry, ‘South Africa’) OR Limit-To (Affilcountry, ‘Iran’) OR Limit-To (Affilcountry, ‘Japan’) OR Limit-To (Affilcountry, ‘Brazil’) OR Limit-To (Affilcountry, ‘Indonesia’) OR Limit-To (Affilcountry, ‘Poland’) OR Limit-To (Affilcountry, ‘Thailand’) OR Limit-To (Affilcountry, ‘Kazakhstan’)) AND (Limit-To (Doctype, ‘ar’)) AND (Limit-To (Language, ‘English’)) AND (Limit-To (Subjarea, ‘Envi’) OR Limit-To (Subjarea, ‘Soci’) OR Limit-To (Subjarea, ‘Econ’) OR Limit-To (Subjarea, ‘Busi’) OR Limit-To (Subjarea, ‘Arts’)).

In the end, we employed the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) to remove papers that did not meet the required standards (Figure 1). 180 duplicated papers that were found in both databases were also removed (Figure 1). After thoroughly screening all the studies, we gathered 181 publications that investigated the relationship between FD and CO2 empirically. Including empirical papers is justified by the fact that these papers have utilized accurate proxies of FD and CO2 in their estimations. Therefore, 181 studies have been selected for subsequent analysis.

Figure 1. PRISMA. Source: Prepared by the authors.

4. Results and discussion

4.1. Annual scientific production

The first Research question (RQ1) addresses the growth of research articles considering the relation between financial development and carbon emissions as a publication venue. The rate of development in a study subject is displayed by categorizing publications according to period. Figure 2 displays the annual scientific output, from 2014’s low of 2 publications to 2022’s projected total of 66; the graph shows a meteoric rise in output. The Paris Accord of 2015 may be attributed to this newfound attention to carbon emissions as a policy issue. Subsequently, significant attention has been directed toward identifying the factors contributing to reducing carbon emissions, with advancements in finance being one such factor. Figure 2 demonstrates that the concerned factors have been rising in prominence as a preferred venue for environmental research, attracting the attention of academics from various disciplines.

Figure 2. Annual scientific production.

Source: Prepared by the Author.

The annual scientific production data exhibits a discernible trend in research output over the years. The number of articles published per year remained relatively low from 2014 to 2016 but experienced a substantial increase starting from 2017. Notably, there was a notable surge in scientific production in 2021 and 2022, with 41 and 63 articles published, respectively. However, the data for 2023 shows a decline in article output, though it is essential to consider the potential incompleteness of the data for the current year. These findings suggest a dynamic and productive research community actively contributing to scholarly knowledge.

4.2. Source analysis

Table 1 lists the journals that comprised the largest share of our sample regarding the number of articles published. The data analysis highlights the most relevant sources based on the number of articles published. ‘Environmental Science and Pollution Research’ is the most prominent source, with 34 articles indicating its significant contribution to the field. ‘Frontiers in Environmental Science’ followed closely with 22 articles, demonstrating its relevance and influence in environmental research. ‘Sustainability (Switzerland)’ also emerges as a relevant source, contributing 18 articles to the scholarly discourse. The ‘International Journal of Environmental Research and Public Health’ showcases its importance with 16 articles, while ‘Sustainability’ contributes 14. Other sources such as ‘Economic Research-Ekonomska Istrazivanja’, ‘International Journal of Energy Economics and Policy’, ‘Energy Economics’, ‘Journal of Environmental Management’, and ‘Sage Open’ also make notable contributions with fewer articles. These findings help researchers identify the key sources that have been influential in the field, enabling them to access relevant and impactful research in environmental and sustainability studies.

Table 1. Most relevant sources.

Source	T.P	H Index	G Index	M Index	T.C	P.Y Start
Environmental Science and Pollution Research	34	14	28	1.56	819	2014
Sustainability (Switzerland)	18	10	18	1.12	570	2015
International Journal of Environmental Research And Public Health	16	8	13	1.14	192	2017
Energy Economics	7	6	7	0.67	1543	2015
Frontiers In Environmental Science	22	5	9	1.67	108	2021
Sustainability	14	5	6	1	50	2019
International Journal of Energy Economics and Policy	8	4	8	0.67	83	2018
Journal of Environmental Management	4	4	4	0.8	468	2019
Economic Research-Ekonomska Istrazivanja	3	3	11	1.5	153	2022
Sage Open	3	3	3	0.75	28	2020

Note: ‘TP’ indicates Total Production, ‘h_index’ indicates H-Index, ‘g_index’ denotes G-Index, ‘m_index’ denotes M-Index, ‘TC’ indicates Total Citations, ‘P_Y start indicates Publication Year’.

Source: Prepared by the Authors.

Despite the widespread recognition of the importance of the financial sector to the economy as a whole, finance and economics-related journals failed to reach the top 10. The leading publications in this area focus on environmental and climate change issues. However, we did locate some pertinent studies by looking through the list of papers published in finance and economics journals, including two published in the Business Economics and Management (Li P., Ouyang Y., 2019, Atta Mills, EFE; Zeng, KL; Baafi, MA 2020) one article each in Accounting (Mahmood H., 2020), Finance Research Letters (Zhou J; Yin Z; Yue P, (2023), Financial Innovation (Udeagha, MC; Breitenbach, MC, 2023), International Journal of Finance and Economics (Alam M; Apergis N; Paramati S; Fang J (2021). As a corollary, it has also been noted that the relationship between financial development and carbon emissions is a relatively new phenomenon in finance and economics journals, having just begun to gain pace around 2020.

A few other journals on this list majorly deal with economics, but only one of them, Economic Modelling, covers environmental economics. Despite its recognized importance and the urgent necessity for full-fledged policy and regulatory instruments, the study of concerned relationships has yet to become the interest of mainstream economics or finance journals. There is still a significant gap in the existing literature that needs to be filled before this rapidly evolving area can capture the attention of mainstream economic and financial researchers. There have been several developments in mainstream finance and economics journals over the past few years that will undoubtedly lead to meaningful outputs. However, it may be early to see more publications at the moment. Since there is a need for more studies in this field, any new findings could have a significant influence. In sum, we are confident in making the statement that a window of opportunity does exist.

The table also presents the local impact of various sources based on h-index, g-index, m-index, total citations (TC), number of publications (NP), and the year of publication start (PY_start). ‘Environmental Science and Pollution Research’ demonstrates a notable local impact with an h-index of 14 and a g-index of 28, indicating many highly cited papers. ‘Sustainability (Switzerland)’ also exhibits a considerable impact with an h-index of 10 and a g-index of 18, suggesting a substantial number of highly cited papers and total citations. The ‘International Journal of Environmental Research and Public Health’ shows moderate impact with an h-index of 8 and a g-index of 13, indicating a noteworthy number of highly cited papers. ‘Energy Economics’ demonstrates a modest impact with an h-index of 6 and a g-index of 7. Other sources, such as ‘Frontiers in Environmental Science’, ‘Sustainability’, ‘International Journal of Energy Economics And Policy’, ‘Journal Of Environmental Management’, ‘Economic Research-Ekonomska Istrazivanja’, and ‘Sage Open’, also exhibit varying degrees of local impact. These findings provide insights into the influence and visibility of these sources within the local academic community, which can be valuable for researchers when considering the significance and relevance of these sources for their studies.

4.3. Country analysis

The main focus of this section is to present an analysis of the most productive network of countries, country collaboration, country production over time, and total publications as follows.

4.3.1. Country scientific production

The bibliometric analysis revealed (Figure 3) the top contributing countries in research papers related to the topic of interest. The analysis considered 28 countries, with China being the leading contributor with 113 research papers. Turkey and Pakistan followed with 33 and 27 research papers, respectively, indicating significant research activity in these countries.

Figure 3. Scientific production.

Other notable contributors included the UK with 17 research papers, Saudi Arabia with 13, and Romania with 12 papers. France, Australia, Iran, and India contributed substantially with 11, 9, 7, and 6 research papers respectively. Several countries contributed moderately with four research papers, including Canada, Germany, Malaysia, and Russia. The following countries contributed two research papers: South Africa, Egypt, Bangladesh, Finland, Iraq, Italy, Lebanon, Poland, Sweden, and Thailand. Meanwhile, the United States, Tunisia, Belgium, and Indonesia each contributed one paper. The findings suggest that China, Turkey, and Pakistan are leading the research output in the field, with significant contributions from other countries. The results highlight the global distribution of research efforts related to the topic, with contributions from countries across multiple continents.

4.3.2. Country collaboration

The collaboration between countries can be analyzed through bibliometric analysis, which involves quantifying and analyzing collaboration patterns among countries based on scientific publications. In this study, we analyzed the collaboration between countries using data on the frequency of collaborations between pairs of countries. The data (Figure 4) revealed several interesting findings. First, China emerged as a highly collaborative country, with collaborations observed with a wide range of countries, including Canada, Germany, India, Indonesia, Malaysia, Pakistan, Romania, Russia, Saudi Arabia, Spain, Thailand, Turkey, United Arab Emirates, United Kingdom, and the USA. This suggests that China actively engages in international research collaborations across multiple regions and continents. Second, Pakistan has collaborated with several countries, including Canada, France, India, Indonesia, Iran, Iraq, Malaysia, Romania, Saudi Arabia, Spain, Thailand, the United Arab Emirates, and the United Kingdom. This indicates that Pakistan also participates in international research collaborations with diverse countries, potentially indicating the country’s efforts to engage in global scientific collaborations.

Figure 4. Country collaboration network.

Third, other countries such as Canada, France, Germany, India, Iran, Malaysia, Romania, Russia, Saudi Arabia, Spain, Turkey, United Arab Emirates, and the United Kingdom were also involved in collaborations with multiple countries, albeit to a lesser extent compared to China and Pakistan. This suggests that these countries collaborate in international research with varying frequency and extent. Overall, the data highlights the importance of international research collaborations in the scientific landscape, with several countries demonstrating active engagement in collaborative research efforts. Such collaborations can foster knowledge exchange, facilitate access to resources and expertise, and lead innovative solutions to global challenges. Further analysis of the nature and impact of these collaborations can provide insights into the dynamics of international scientific collaborations and their contribution to global knowledge creation.

4.3.3. Country production over time

Figure 5 illustrates the research production of different countries over time. In the case of Pakistan, there was a gradual increase in research output from 2016 to 2020, with four articles published each year. This trend continued in 2021, 2022, and 2023, significantly increasing to 21 articles per year. On the other hand, Turkey experienced steady growth in research production, starting with two articles in 2017 and gradually increasing to 26 articles in 2022 and 2023.

Figure 5. Country production over time.

The United Kingdom exhibited a similar pattern, with research production rising from two articles in 2018 to 15 in 2022 and 2023. China displayed a notable surge in research output, increasing from nine articles in 2019 to 84 in 2022 and 2023. Saudi Arabia had minimal research production until 2021 when it witnessed a sudden rise to nine articles in 2021 and increased to 13 in 2022 and 2023. These findings indicate varying levels of research productivity across countries, with Pakistan, Turkey, China, and the United Kingdom showing consistent growth in scholarly output. At the same time, Saudi Arabia exhibited a recent increase in research contributions.

4.4. Most influential articles or document and citation analysis

The bibliometric data analysis of documents provides valuable information on these exemplary papers, indicating the significant contributions made by these researchers in their respective fields. Their citation metrics highlight the recognition and impact they have generated, positioning them as influential works that have shaped and advanced their areas of study. Researchers can further delve into these highly cited documents to gain deeper insights and build upon the foundational knowledge they provide. However, it is crucial to consider additional qualitative factors alongside citation metrics when evaluating research papers’ overall significance and scholarly contributions. Table 2 demonstrates that the ‘Shahbaz M, 2018, Energy Econ’ paper is the most influential publication, amassing a substantial total citation count of 515. With an impressive average of 85.83 citations annually, this paper demonstrates a sustained and impactful presence in energy economics. Its normalized citation score of 6.23 further underscores its prominence and recognition from the research community.

Table 2. Most influential documents.

Document Title	T.C	T.C Per Year	Year of Publication	Global Citations
Environmental degradation in France: The effects of FDI, financial development, and energy innovations	515	85.83	2018	515
Financial development, environmental quality, trade, and economic growth: What causes what in MENA countries.	427	47.44	2015	427
Energy Consumption, Financial Development and Economic Growth in India: New Evidence from a Nonlinear and Asymmetric Analysis	322	46	2017	322
Causal interactions between CO2 emissions, FDI, and economic growth: Evidence from dynamic simultaneous-equation models	312	31.2	2014	312
Role of financial development, economic growth & foreign direct investment in driving climate change: A case of emerging ASEAN	268	53.6	2019	268
Does globalization impede environmental quality in India?	238	26.44	2015	238
The role of globalization on the recent evolution of energy demand in India: Implications for sustainable development.	179	22.38	2016	179
The impacts of globalization, financial development, government expenditures, and institutional quality on CO2 emissions in the presence of environmental Kuznets curve	175	43.75	2020	175
The role of information and communication technology in encountering environmental degradation: Proposing an SDG framework for the BRICS countries	142	47.33	2021	142
The Impact of Financial Development on Carbon Emissions: A Global Perspective	114	22.8	2019	114

Note: ‘TC’ denotes Total Citations; Source: Prepared by the Authors.

Another notable contribution is the paper authored by ‘Omri A, 2015, Energy Econ’, which has garnered a total citation count of 427. With an average of 47.44 citations per year, this publication has significantly impacted the field. Its normalized citation score of 2.20 indicates its considerable influence relative to other papers in the discipline. Similarly, the paper ‘Shahbaz M, 2017, Energy Econ’ has achieved notable recognition, accumulating 322 citations with an average of 46 per year. This indicates the substantial impact and influence of the research findings presented in this publication. Its normalized citation score of 2.11 highlights its relative significance within the field of energy economics. Furthermore, the paper authored by ‘Omri A, 2014, Econ Model’ has accumulated 312 citations, showcasing its research impact. This publication has contributed significantly to economic modeling, with an average of 31.2 citations per year. The normalized citation score of 1.96 highlights the strong influence of this paper compared to others in the field. The dataset also reveals that the highly cited paper authored by ‘Nasir Ma, 2019, J Environ Manage’, garnered 268 citations, averaging 53.6 citations per year. This publication holds substantial influence within the field of environmental management, as evidenced by its normalized citation score of 5.15. A Factorial Map (Figure 6) is also generated to highlight the most cited documents.

Figure 6. Factorial map.

Source: Prepared by the authors.

4.5. Average citation per year

The average annual citations offer insights into academic research’s impact and citation trends. The ‘MeanTotal Citation per Article’ column represents the average number of citations received per article, while ‘MeanTotal Citation per Year’ represents the average number of citations received yearly. Table 3 demonstrates that from 2014 to 2017, the average number of citations per article ranged from 152.33 to 193.75, indicating a relatively high impact and recognition of the research. Nevertheless, there was a clear inverse relationship between the number of years since publication and the average number of citations per year, as indicated by the ‘CitableYears’ metric. This suggests that the impact of the research tends to diminish over time.

Table 3. Citation analysis.

Year	Mean TC Per Article	No of Article	Mean TC per Year	Citable Years
2014	159.5	2	15.95	10
2015	193.75	4	21.53	9
2016	179	1	22.38	8
2017	152.33	3	21.76	7
2018	82.67	9	13.78	6
2019	52.07	15	10.41	5
2020	39.28	18	9.82	4
2021	26.07	41	8.69	3
2022	7.7	63	3.85	2
2023	0.75	8	0.75	1

Note: ‘TC’ denotes Total Citations; Source: Prepared by the author.

Starting from 2018, the average number of citations per article decreased significantly, ranging from 82.67 to 7.7. This decline may indicate a decrease in the research’s perceived impact or relevance. The average number of citations per year also decreased accordingly. By 2023, the average number of citations per article dropped to 0.75, suggesting a minimal impact. It is important to note that this value is based on only one year of citation data, so it should be interpreted cautiously. Overall, the data indicates a decline in the average number of citations per article and year over time, highlighting a potential decrease in the long-term impact and visibility of the research. These findings underscore the importance of sustained efforts to disseminate research findings and maintain scholarly relevance.

4.6. Authorship trends

Similarly, the authorship patterns are at the center of our research question. The writers with the most articles published on the concerned theme between 2014 and 2021 are listed in Table 4. Muhammad Shahbaz has demonstrated exceptional productivity and impact in the field, as evidenced by his eleven published works and his leading position in both frequency of publication and total citation count. Furthermore, his h-index and g-index, valued at eleven, further underscore his scholarly influence and recognition within the field of study.

Table 4. Most influential authors.

Author	Total Publications	Total Citation	PY_start	h_index	g_index	m_index
Shahbaz M	11	1745	2015	11	11	1.222
Nasir M	5	1079	2018	5	5	0.833
Omri A	5	786	2014	5	5	0.5
Abro M	4	17	2021	4	4	1.333
Anser M	5	20	2021	4	4	1.333
Nassani A	4	17	2021	4	4	1.333
Ozturk I	4	399	2017	4	4	0.571
Sinha A	4	273	2021	4	4	1.333
Zaman K	6	20		4	4
Adebayo T	5	143	2021	3	5	1
Askar S	3	13	2021	3	3	1
Chien F	3	226		3	3
Kahia M	3	47	2021	3	3	1
Khan M	5	20		3	4
Liu X	4	92	2018	3	4	0.5

Note: ‘TP’ indicates Total Production, ‘h_index’ indicates H-Index, ‘g_index’ denotes G-Index, ‘m_index’ denotes M-Index, ‘TC’ indicates Total Citations, ‘P_Y start indicates Publication Year’.

Source: Prepared by the Authors, Results of Bibliometric Analysis.

Nasir M is ranked second in scholarly output, having authored five papers. Their h-index and g-index are all five, indicating the number of publications that have received at least five citations each. Additionally, his work has garnered a total of 1079 citations. Third place is claimed by Omri A, who has authored five papers and has an h-index of 5, a g-index of 5, and 786 citations. Similarly, the remaining prominent authors are presented in Table 4, organized according to their h and g-index. The Three Field Plot is also generated to identify the most influential authors (see Figure 7).

Figure 7. Three field plot.

4.7. Affiliation analysis

The affiliation analysis is conducted to identify the most relevant institution Affiliations and their production over time. The analysis of the most relevant institution affiliations revealed that (see Table 5) Cyprus International University had the highest number of articles, with a total of 10 articles. Qassim University and Chongqing University followed closely with 8 and 6 articles, respectively. Other notable institutions with significant publication outputs were the European University of Lefke, Hazara University Mansehra, University of Pitesti, and the University of Southern Queensland, each with six articles.

Table 5. Most relevant institution affiliations.

Affiliation	Number of Articles
Cyprus Int Univ	10
Qassim Univ	8
Chongqing Univ	6
European Univ Lefke	6
Hazara Univ Mansehra	6
Univ Pitesti	6
Univ Southern Queensland	6
Wuhan Univ	5
Montpellier Business Sch	4
Ocean Univ China	4

Source: Prepared by the Authors.

Wuhan University had five articles, while several institutions had four articles, including Montpellier Business School, Ocean University China, the University of Birmingham, and the University of Dundee. Numerous institutions had three articles, and several had two articles, while most had 1 article each.

4.8. Key word analysis

The keyword analysis has been divided into three sections: co-occurrence analysis, word cloud generation, and word frequency analysis over time.

4.8.1. Co-occurrence analysis

Applying the term co-occurrence proves to be a valuable methodology in discerning the underlying structure of the previous studies. The co-occurrence network serves as a network map by emphasizing the connection between keywords. Moreover, the knowledge map of keyword co-occurrences can also suggest hot topics. To begin our exploration of the keywords connected to financial development and carbon emissions, we list the top 10 terms ranked by the number of connections made and the strength of those connections. The term ‘Financial Development’ was the initial focus term. Figure 8 presents the top-ranked keywords based on their co-occurrence. Carbon emission is in first place with 53 co-occurrences, followed by Carbon dioxide with 51 co-occurrences. Economic development has 50 co-occurrences. CO2 Emission has 48 occurrences. The keyword financial development is among the first ten words, ordered by their appearance, with 44 co-occurrences. Based on these findings, carbon emission, financial development, CO2 emission, carbon dioxide, and economic development are emerging keywords in research studies. This validates the importance of exploring the relationship between carbon emissions and financial development.

Figure 8. Keyword co-occurrence.

4.8.2. Word cloud

The word cloud (Figure 9) focuses on key themes in academic research, encompassing economics, finance, and the environment. The high frequency of terms such as ‘carbon dioxide’, ‘economic development’, and ‘carbon emissions’ indicates a strong emphasis on understanding the environmental impact of carbon emissions and the pursuit of sustainability. The inclusion of terms like ‘financial development’, ‘sustainable development’, and ‘renewable energy’ highlights the examination of the role of finance, the need for sustainable practices, and the transition to cleaner energy sources. The word cloud signifies an interdisciplinary approach to address global challenges and foster a sustainable future.

Figure 9. Word Cloud.

4.8.3. Word frequency over time

Figure 10 showcases the frequency of various keywords in creative research over time. In 2014, there was no significant mention of carbon dioxide, economic development, carbon emissions or China. However, in subsequent years, the frequency of these terms gradually increased.

Figure 10. Word frequency over time.

By 2023, carbon dioxide appeared the most frequently, followed closely by economic development and carbon emissions. China consistently maintained a moderate presence throughout the years. Other noteworthy terms such as economic growth, CO2 emissions, financial development, and environmental economics showed a gradual rise in frequency. Environmental degradation exhibited a steady presence throughout the years, albeit with a relatively lower frequency than other terms. These findings suggest an increasing focus on carbon-related topics, economic development, and their environmental implications in creative research over the years.

4.9. Bradford’s Law

This section (Figure 11) analyses the distribution of scientific literature in environmental science and related disciplines through the lens of Bradford’s Law. By examining the frequency of articles across different zones, we can gain insights into the concentration of scholarly contributions and the influence of prominent journals.

Figure 11. Bradford law.

Zone 1 exhibits a notable concentration of publications, as exemplified by the top-ranked journal, ‘Environmental Science and Pollution Research’, which accounts for a substantial frequency of 34 articles. This journal stands out as the most prolific contributor within the dataset. The cumulative frequency in Zone 1 reaches 74, indicating that a limited number of journals in this zone hold a significant share of the overall scientific output.

Moving to Zone 2, we observe a decline in the frequency of articles compared to Zone 1. The leading journal in this zone, ‘International Journal of Environmental Research and Public Health’, contributes 16 articles, while the cumulative frequency is 90. These findings suggest a broader dissemination of research across a slightly more extensive set of journals, yet with decreasing individual contributions.

Zone 3 demonstrates the expansion of scholarly contributions, as evidenced by the cumulative frequency starting from 130. In this zone, the distribution becomes more even, with many journals publishing articles with relatively lower frequencies. Although the individual contributions in Zone 3 are less substantial, the cumulative frequency continues to rise steadily as we include journals ranked lower in the dataset.

The analysis of this bibliometric data aligns with the fundamental principles of Bradford’s Law, highlighting the concentration of scientific output in a limited number of high-impact journals (Zone 1), followed by diffusion of contributions across a broader range of journals (Zone 2 and Zone 3). This pattern underscores the significance of core journals and their influential role in shaping research in environmental science.

It is crucial to note that this interpretation is based solely on bibliometric data and warrants further investigation to draw more comprehensive conclusions. Expanding the dataset and incorporating additional variables, such as citations and impact factors, would enhance the research-oriented understanding of the distribution patterns in environmental science literature.

This publication holds substantial influence within the field of environmental management, as evidenced by its normalized citation score of 5.15.

4.10. Trend topics

The analysis of the data (Figure 12) reveals several prominent trends in academic research. The topics with the highest frequencies are carbon dioxide (107) and economic development (99), indicating sustained interest from 2020 to 2022. Researchers have focused on understanding the sources, impacts, and mitigation strategies related to carbon dioxide emissions and exploring various aspects of economic development, such as drivers, policies, and implications.

Figure 12. Trend topics.

Other notable topics include carbon emissions (53) and CO2 emissions (48), reflecting consistent research attention on the measurement, reduction strategies, and the interplay between carbon emissions and environmental factors. Environmental quality (22) has also received significant research focus, encompassing the assessment and improvement of environmental indicators, degradation monitoring, and conservation measures.

Methodological aspects have been explored through the topics of article analysis and panel data, both with a frequency of 14. Scholars have investigated the characteristics of scholarly articles and employed panel data techniques to enhance scholarly understanding and analytical capabilities. Spatial analysis (8) has been employed to examine spatial patterns and processes, particularly in studying the relationships between environmental and socioeconomic factors.

The carbon footprint topic (8), which gained attention in 2019 and remained consistent until 2020, highlights research efforts in quantifying and reducing carbon footprints associated with various activities. The environmental Kuznets curves (5) have been explored from 2015 to 2019, examining the inverted U-shaped relationship between economic development and environmental degradation in different contexts.

Lastly, air pollution (5) has received attention in studying its sources, impacts, and control measures, emphasizing the effects of air pollutants on human health and the environment.

The bibliometric analysis showcases ongoing research in understanding the connections between economic development, environmental quality, and carbon-related issues. Methodological advancements, such as article analysis, panel data techniques, and spatial analysis, have also contributed to the research landscape. This multidisciplinary approach merges environmental science, economics, and data analysis elements to address pressing environmental and societal challenges.

5. Conclusion

A comprehensive analysis was conducted utilizing the Scopus and Web of Science core database to evaluate the advancements and patterns in research on carbon emissions and their association with financial development from 2014 to 2023, employing bibliometric methodologies. With this aim, 884 documents were downloaded, and after a meticulous screening procedure, 181 articles were identified as appropriate for inclusion in the bibliometric study. The primary results can be succinctly described in the following manner:

Studies on carbon emission and financial development have shown significant expansion since 2017, with a steady annual rise in publications. The continuous increase in publications highlights the growing importance and increased focus on carbon emissions and its association with financial development.

At the global scale, emerging economies, notably China, hold significant positions in comprehensive research productivity and collaborations with the highest publication counts. As a representative of the global developing community, China has exhibited noteworthy achievements in terms of prolific institutions and authors, with Turkey and Pakistan closely trailing behind. On the other hand, it is noteworthy that developed countries, including the United Kingdom and France, have made comparatively few contributions, as evidenced by their rankings of 4th and eighth. This suggests less research productivity than their counterparts in developing nations.

The leading journals in this field predominantly focus on the environment and climate change, such as ‘Environmental Science and Pollution Research’, ‘Frontiers in Environmental Science’, and ‘Sustainability (Switzerland).’ Nevertheless, despite the widely acknowledged significance of the financial sector in the broader economy, scholarly journals focusing on finance and economics could not attain places inside the top 10. Furthermore, the findings indicate that these scholarly journals have prioritized disseminating research on carbon emissions and financial growth since 2020. This indicates a consistent increase in publications across all the journals.

Additionally, the journal ‘Environmental Science and Pollution Research’ exhibits a notable prominence as the most frequently cited source, closely followed by ‘Energy Policy’ and ‘Energy Economy.’ However, based on our analysis, it is evident that there has been a downward trend observed in the average number of citations per article and year. This trend signifies a potential reduction in the research’s long-term influence and prominence.

Within this particular domain, Mohammad Shahbaz emerges as the preeminent author, exhibiting exceptional productivity as evidenced by his extensive authorship of published works and the significant number of citations received. Although some authors may have produced fewer papers, Mohammad Shahbaz’s research has received extensive attention and exerted substantial influence.

Till 2014, there was a limited or insignificant mention of keywords such as carbon dioxide, economic development, carbon emissions, or China. However, in subsequent years, there was a discernible increase in the occurrence of these phrases. By 2023, it becomes evident that the term ‘carbon dioxide’ has emerged as the predominant keyword, strongly correlating both economic development and carbon emissions. The occurrence of keywords such as ‘financial development’, ‘sustainable development’, and ‘renewable energy’ underscores the analysis of the significance of finance.

While analyzing the affiliations of the most relevant institutions, it has been observed that Cyprus International University boasts the highest number of articles, with Qassim University and Chongqing University in close pursuit. Moreover, there has been a discernible increase in article generation within these establishments, specifically in 2020.

The findings highlight varying trends in research article production among countries, indicating differences in research output and productivity over time influenced by research funding, government policies, academic collaborations, and technological advancements.

The bibliometric analysis showcases ongoing research in understanding the connections between economic development, environmental quality, and carbon-related issues. Methodological advancements, such as article analysis, panel data techniques, and spatial analysis, have also contributed to the research landscape.

6. Implications, limitations, and future directions of the study

This groundbreaking study adopts a comprehensive, multidisciplinary approach that combines environmental science, economics, and data analysis. The study addresses pressing environmental and societal issues beyond traditional disciplinary boundaries by combining knowledge from several domains. The integration of these varied viewpoints not only enhances the comprehensiveness of the investigation but also illuminates previously unexamined correlations and associations.

The implications of this study have a broader impact on the overall research environment of the countries being examined, going beyond its immediate conclusions. The research offers insights for policymakers, scholars, and stakeholders by unraveling the underlying processes. Policymakers can utilize these discoveries to develop well-informed choices that tackle both ecological difficulties and economic necessities. Researchers acquire a more profound comprehension of the complicated network of circumstances that impact their work, enabling them to make more effective contributions toward addressing intricate difficulties. Furthermore, the Study results act as a guide for stakeholders, helping them navigate the changing landscape of research. Gaining insights into the patterns of research productivity provides opportunities for strategic partnerships and focused investments. This knowledge allows stakeholders to anticipate and recognize attractive topics for future research initiatives. This fosters a collaborative atmosphere that maximizes the impact of collective efforts. This interdisciplinary research enhances our understanding of the relationships among environmental science, economics, and data analysis. It also facilitates informed decision-making, strategic collaboration, and targeted investments.

The main limitation of this study’s results stems from the restricted period and the need for more empirical studies examining the relationship between FD and carbon emissions. However, further studies could overcome these limitations with the growing trend of related studies in recent years. The study’s enduring legacy is a guiding light, highlighting avenues toward a sustainable and knowledge-enriched future in the evolving research landscape. To thoroughly examine the observed patterns, additional research efforts should carefully explore the underlying causes that contribute to these tendencies. This analytical investigation has the potential to reveal concealed connections, determine cause-and-effect linkages, and provide light on the complex mechanisms that underlie the observed events. Thorough examinations like this are essential for understanding the complexities of the interconnected environmental and financial development phenomenon.

Authors’ contributions

Sheena Rehman, Ahmad Hasan: conception and design. Sheena Rehman, Vandana Singh: analysis and interpretation of the data. Ahmad Hasan: Formal analysis. Sheena Rehman, Ahmad Hasan, Vandana Singh: Drafting of the paper. Sheena Rehman, Vandana Singh, Faozi A. Almaqtari: Revising the intellectual content. Faozi A. Almaqtari: Resources. Ahmad Hasan: Software. Sheena Rehman, Faozi A. Almaqtari: Supervision. Sheena Rehman, Faozi A. Almaqtari: Validation. Ahmad Hasan: Visualization. Sheena Rehman, Faozi A. Almaqtari: Writing – review & editing. Ahmad Hasan: Analysed and interpreted the data. Sheena Rehman, Ahmad Hasan, Vandana Singh: contributed reagents, materials, analysis tools or data.

Consent for publication

Authors have permitted this manuscript to be submitted to this journal.

Disclosure statement

The authors declare that they have no competing interests.

Data availability statement

Data will be made available as per request.

Additional information

Funding

There is no funding provided for this manuscript.

Notes on contributors

Sheena Rehman

Sheena Rehman is a Senior Research Fellow at Department of Commerce, Aligarh Muslim University. Her area of interest is Entrepreneurial Finance, specifically- Venture Capital.

Ahmad Hasan

Ahmad Hasan is a Research Scholar from Department of Commerce, Aligarh Muslim University. His area of research is Small and Medium Enterprises, Informal Investment and International Investment.

Vandana Singh

Vandana Singh is a Junior Research Fellow at Department of Commerce, Aligarh Muslim University. Her area of research is Entrepreneurial Finance.

Faozi A. Almaqtari

Dr. Faozi A. Almaqtari is an Assistant Professor and the head of the department of Accounting at A’Sharqiyah University in Oman. He has authored, co-authored, and reviewed various articles published in prestigious Scopus, ISI, and Web of Science journals. Passionate about research, Dr. Faozi has presented his research papers at international conferences and seminars held in multiple countries. His research interests encompass a wide range of areas, including ESG, corporate governance, financial reporting, auditing, and the application of artificial intelligence in accounting.