Figure 4
The graph shows three lines representing the multipliers for financial development. The x-axis ranges from 1 to 15, and the y-axis ranges from -1.6 to 0.8. The solid black line represents the multiplier for positive changes in financial development (LFINAN_DEV(+)), starting at 0, peaking at about 0.4, and then leveling off around 0. The dashed black line represents the multiplier for negative changes in financial development (LFINAN_DEV(-)), starting at 0, dipping to about -0.8, and then leveling off around -0.4. The red dashed line with confidence intervals represents the asymmetry plot, fluctuating between about -0.4 and 0.4. The findings indicate that expansions in bank-based credit are conditionally associated with higher CO2 emissions over both adjustment horizons.Dynamic multiplier of financial development