Energy consumption and financial development indicators nexuses in Asian economies: a dynamic seemingly unrelated regression approach

In recent times, financial development and industrial progression accrue energy demand. Therefore, the present research is investigating the nexuses of energy consumption-financial development indicators for 32 Asian economies including the FDI, economic growth, and urban sprawl. The long-run marginal impacts and causal linkage are estimated through the dynamic seemingly unrelated regression and the heterogeneous causality respectively. The estimates infer that financial development indicators are deteriorating the energy consumption in the Asian region, while both FDI and urban sprawl accrue energy consumption. However, economy-wise estimates infer the heterogeneous impacts on energy consumption. Heterogenous causality infers a bidirectional causality among the financial development indicators and energy consumption. There is a need to devise the energy policies related to the financial sector for sustainable usage energy and a clean environment.