This article revisits the nexus between financial development and environmental degradation by incorporating economic growth, electricity consumption and economic globalization in the CO2 emissions function for the period 1975QI-2014QIV in the United Arab Emirates. We apply structural break and cointegration tests to examine unit root and cointegration between the variables. Further, the article also uses the Toda-Yamamoto causality test to investigate the causal relationship between the variables and tests the linkages of the robustness of causality by following the innovative accounting approach. Our empirical analysis shows cointegration between the series. Financial development increases CO2 emissions. Economic growth is positively linked with environmental degradation. Electricity consumption improves environmental quality. Economic globalization affects CO2 emissions negatively. The relationship between financial development and CO2 emissions is U-shaped and inverted N-shaped. Further, financial development leads to environmental degradation, and environmental degradation in turn leads to financial development in the Granger sense.

中文翻译：

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阿拉伯联合酋长国的金融发展与环境恶化之间的联系：增长，全球化和结构性断裂的重要性。

本文通过将阿拉伯联合酋长国1975QI-2014QIV期间的经济增长，电力消耗和经济全球化纳入CO2排放函数，重新审视了金融发展与环境恶化之间的关系。我们应用结构破坏和协整检验来检验变量之间的单位根和协整。此外，本文还使用Toda-Yamamoto因果关系检验来研究变量之间的因果关系，并遵循创新的会计方法来检验因果关系稳健性的联系。我们的经验分析显示了系列之间的协整关系。金融发展增加了二氧化碳排放量。经济增长与环境恶化有着积极的联系。电力消耗改善了环境质量。经济全球化对二氧化碳排放产生负面影响。金融发展与CO2排放之间的关系呈U形和倒N形。此外，金融发展导致环境恶化，而环境恶化又导致格兰杰意义上的金融发展。