Financial development, industrial structure and environmental sustainability: new evidence from Japan

Considering the significant importance of environmental sustainability, it is vital to understand the determinants of environmental sustainability and to draw the policy implications for a sustainable environment. This paper examines the impacts of financial development and industrial structure on environmental sustainability in China from 1995 to 2020 using the A.R.D.L. approach. The result indicates that financial development negatively impacts CO2 emissions and greenhouse gas emissions in the long-run. The impact of industrial structure is also enormous. The results also suggest that industrial structure negatively impacts environmental sustainability by decreasing CO2 emissions and greenhouse gas emissions in the long-run. While Internet development accelerates environmental sustainability in Japan in the long run, economic development and energy negatively impact environmental sustainability in the long run. The findings of this study add to the current literature and provide some significant policy implications for improving environmental sustainability