Urbanization and Financial Development on Environmental Degradation in Selected Coastal Developing Countries

Sayareh, Morteza; Shirafkan Lamsoo, Mehdi

doi:10.22034/jmstsd.2026.608770.1023

Urbanization and Financial Development on Environmental Degradation in Selected Coastal Developing Countries

Articles in Press

Document Type : Original Article

Authors

Morteza Sayareh

Mehdi Shirafkan Lamsoo

Department of Economics, Faculty of Management and Humanities, Chabahar Maritime University, Chabahar, Iran

10.22034/jmstsd.2026.608770.1023

Abstract

Financial development is considered a prerequisite for economic growth and environmental improvement. Over recent years, environmental damages have become increasingly prevalent, stemming from factors like economic growth, urbanization, energy consumption, and industrial activities. This applied, analytical-descriptive study investigates the effect of urbanization and financial development on environmental quality. Data analysis was conducted using EViews and the Fully Modified Ordinary Least Squares (FMOLS) model for the period 2000–2019. Estimations reveal that Gross Domestic Product (GDP), energy consumption, financial development, and urbanization all exert positive and statistically significant impacts on environmental pollution. To ensure robustness, the Dynamic Ordinary Least Squares (DOLS) method was employed, which corroborates that all examined variables significantly increase environmental pollution. Given the focus on coastal nations, the findings underscore the urgent need for sustainable marine and coastal zone management to mitigate the adverse impacts of these macroeconomic drivers on marine ecosystems.

Graphical Abstract