Do financial development, trade openness, economic development, and energy consumption affect carbon emissions for an emerging country?

It is agreeable that the rapid progress of civilization throughout the years came at a great price for severe environmental damages. Currently, human civilization is facing the consequences of the environmental damages that have been made for centuries. As a result, taking measures that will take civilization forward yet not make any environmental damages has become a devoir. Taking these measures requires a profound knowledge of the effect of financial development and trade openness on carbon emissions. This paper inspects the association between economic development, financial development, trade openness, and energy usage on carbon emissions for an emerging nation, like Bangladesh. The paper is based on a total of 36 years of data (1980–2016). To ascertain the existence of both long-run and short-run relationships, the autoregressive distributed lag bounds testing method is applied. The outcomes expose that energy usage has a substantial influence on carbon emissions both in the short run and a long run. The influence of economic development is momentous in the long run; however, in the short run, it has no effect. The factors for trade openness and financial development are negative and immaterial equally in the short run and long run. The present study proposes that Bangladesh’s government should carry out the strategy to advance substitute energy bases that ought not to release a large amount of carbon emissions.