Does financial globalization uncertainty affect CO₂ emissions? Empirical evidence from some selected SSA countries

Based on the Environmental Kuznets's Curve theory, this study seeks to investigate the asymmetric relationship between the financial globalization uncertainty and the environmental quality alongside the test of Kuznets's hypothesis. The research covers the data set of nine Sub Saharan African countries from 1980-2019. The Kuznets's hypothesis of the relationship between economic growth and the environment quality has been validated, identifying the pivotal point of the relationship's transition. The results further reveal that the positive shock of FGU is inversely related to CO₂ emissions, implying that as the foreign capital flow increases, the accompanying CO₂ emissions decreases. Whereas, the negative decomposed component of the financial globalization uncertainty indicates a negative and significance coefficient. While, renewable energy reduces the deterioration of the environmental quality. In the last part of the study, policy implications are recommended accordingly.