We studied the influence of finance, natural resources, and governance on environmental degradation and economic growth for seven countries of the South Asian Association for Regional Cooperation (SAARC) using the latest panel data over 1996–2018. Panel cointegration tests and the long-run algorithms capable of addressing endogeneity and cross-sectional dependence have been applied to analyze the variables’ linkages. To explore the short-run causalities, we further utilized a panel heterogeneous causality test. Empirical estimates concluded that there is a mediating role of finance and governance on improving environmental quality and have a significant positive impression on the economic growth of the SAARC countries. The results supported the natural resources curse theory and substantially contributed to environmental emissions in the study area. The causal results concluded the unilateral causality from the environment to governance and bidirectional causality between finance and environmental degradation. Similarly, there were unilateral causal linkages between economic growth and natural resources, where links are bidirectional between natural resources and environmental degradation for SAARC countries. Based on the outcomes of the study, some policy implications are provided for theory and practice.

我们使用 1996 年至 2018 年的最新面板数据研究了南亚区域合作联盟 (SAARC) 七个国家的金融、自然资源和治理对环境退化和经济增长的影响。面板协整检验和能够解决内生性和横截面依赖性的长期算法已被应用于分析变量的联系。为了探索短期因果关系，我们进一步利用了面板异质因果关系检验。实证估计得出结论，金融和治理对改善环境质量具有中介作用，对南盟国家的经济增长具有显着的积极影响。结果支持了自然资源诅咒理论，并对研究区的环境排放做出了重大贡献。因果结果得出了从环境到治理的单向因果关系和金融与环境退化之间的双向因果关系。同样，经济增长与自然资源之间存在单方面的因果联系，而对于南盟国家来说，自然资源与环境退化之间的联系是双向的。基于研究结果，为理论和实践提供了一些政策启示。南盟国家的自然资源和环境退化之间存在双向联系。基于研究结果，为理论和实践提供了一些政策启示。南盟国家的自然资源和环境退化之间存在双向联系。基于研究结果，为理论和实践提供了一些政策启示。