The article by a faculty member of the Accounting Department at Bozorgmehr University of Qaenat was published in the journal `Management of Environmental Quality` July 29, 2024

The article by Dr. Maliheh Ashna, esteemed faculty member of the Accounting Department at Bozorgmehr University of Qaenat, titled *"Can financial development affect environmental quality in the presence of economic uncertainty and informal activities? Exploring the linkages in the middle-income countries"* was published in the *Management of Environmental Quality* journal with a JCR-Q1 ranking.

The significance of this research lies in its effort to understand how economic conditions—such as financial development, informal economic activities, and economic uncertainty—affect carbon emissions. It aims to offer useful insights for policymakers to promote sustainable development.

Using the Panel-ARDL method, the study analyzes data from 30 developing countries between 1990 and 2018, sourced from the World Bank, the IMF, and global uncertainty databases. According to the empirical modeling results, increases in GDP and energy intensity are associated with rises in carbon emissions by 83% and 14% respectively. In contrast, greater financial development and economic uncertainty correlate with significant reductions in emissions—by approximately 47% and 23% respectively. Moreover, the growth of informal economies is linked to a slight yet statistically meaningful reduction in carbon emissions.

These findings suggest that financial development plays an important role in reducing CO₂ emissions. Although economic uncertainty and informal economies are typically viewed as unfavorable, they nonetheless contribute to emission reduction. Hence, enhancing financial development and addressing the impacts of economic uncertainty are vital for carbon mitigation. Environmental policies should be aligned with measures to manage uncertainty and reduce informal economic activity to prevent further greenhouse gas emissions.

The novelty of this paper lies in its focus on major shifts in the economic environment—particularly financial development, uncertainty, and informality—as key determinants of carbon emissions. This perspective introduces fresh pathways for understanding the complex relationship between emissions and economic factors.

The Public Relations and Research Management Office of Bozorgmehr University of Qaenat congratulates the researchers of this article and the Bozorgmehr Qaenat academic family on this achievement, and sincerely wishes them continued success and prosperity from Almighty God.