This research investigates the dynamic effects of stock markets, economic globalization, and financial development on environmental quality. We used the annual panel data of Southern Common Market (MERCOSUR economies) covering the period 1990 to 2016. Through updated econometric methodologies, first, we substantiated cross-sectional dependency, stationary level, and panel cointegration among scrutinized variables, which is purely done for reliable findings. After that, we deployed the Generalized Method of Moment (GMM) approach to get vigorous elasticities of all the specified regressors. Elasticities of GDP and its square corroborate that the environmental Kuznets curve exists between income level and carbon emission. Empirical verdicts postulate that the development of stock markets and energy ingestion accelerate to air pollution by assisting carbon dioxide emissions while economic globalization and financial sectors are playing a pivotal role in augmenting the environmental quality of the MERCOSUR economies. Economic globalization and financial development have a significant negative influence on CO 2 emission. The Pooled Mean Group (PMG) estimator robust our findings and provide the speed of adjustment (54.5022%). Moreover, Dumitrescu-Hurlin Panel Causality (DHPC) test depicts that economic globalization, financial sectors, energy use, and real income significantly cause carbon emissions in the case of MERCOSUR economies. In the end, the authors have proposed some policy implications to legislators and policymakers.

中文翻译：

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潜在影响经济指标和环境质量：来自南方共同市场经济体的见解

本研究调查股票市场、经济全球化和金融发展对环境质量的动态影响。我们使用了 1990 年至 2016 年期间南方共同市场（MERCOSUR 经济体）的年度面板数据。通过更新的计量经济学方法，首先，我们证实了审查变量之间的横截面依赖、平稳水平和面板协整，这纯粹是为了可靠的发现。之后，我们部署了广义矩法 (GMM) 方法来获得所有指定回归量的有力弹性。GDP 及其平方的弹性证实了环境库兹涅茨曲线存在于收入水平和碳排放之间。实证结论假设，股票市场的发展和能源摄入通过促进二氧化碳排放加速空气污染，而经济全球化和金融部门在提高南方共同市场经济体的环境质量方面发挥着关键作用。经济全球化和金融发展对CO 2 排放有显着的负面影响。合并平均组 (PMG) 估计器验证了我们的发现并提供了调整速度 (54.5022%)。此外，杜米特雷斯库-赫尔林面板因果关系 (DHPC) 测试表明，在南方共同市场经济体的情况下，经济全球化、金融部门、能源使用和实际收入显着导致碳排放。最后，作者对立法者和决策者提出了一些政策启示。