ISLAMIC FINANCIAL DEVELOPMENT IMPACT ON ENERGY INTENSITY: EVIDENCE FROM ISLAMIC BANKS

The relationship between financial development and energy intensity is yet firmly established as the literature emerging, few empirical studies that have been done provide conflicting results. Whereas some conclude a U-shaped intensity, others show linear two variables. This study investigates by focusing on role of Islamic development. covers 30 countries where banks are present. Using fixed-effects panel model, results suggest banking significantly increases in sample countries. We also identify other important factors increase intensity. These include carbon emissions, renewable use imports. findings point to importance designing policies incentivize Shari'ah-compliant investors finance clean technologies potent tool for reducing achieving sustainable development, greening finance.