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Original scientific paper

https://doi.org/10.1080/1331677X.2022.2035244

Sustainable financial inclusion as a source of green environment? Evidence from selected regional comprehensive economic partnership countries

Xiajing Dai
Shuitu Qian
Junjie Zhang


Full text: english pdf 1.771 Kb

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Abstract

The role of sustainable financial inclusion is considered crucial for
attaining energy efficiency. It is vital for acquiring low carbon
energy sources for an economy. This study attempt to integrate
financial inclusions as a major defining factor of efficient energy
combined with the role of economic growth, environment-related
technologies, and the human capital index for RCEP countries
from 2004 to 2019. The Westerlund error correction cointegration
test is adopted for co-integration purposes, while the augmented
mean group (AMG) method is carried for short-run and long-run
analysis, and the dynamic ordinary least square (DOLS) test is
used to ensure the robustness of the model. The outcomes indicate that financial inclusion induces a positive impact on renewable energy efficiency and ensures low energy sources for RCEP
economies. Further, the role of economic growth, environmentrelated innovation, and human capital is also important for
achieving energy efficiency. Furthermore, in the short-run, the
Dumitrescu and Hurlin (Economic Modelling, 29(4), 1450–1460,
2012) panel heterogeneous non-causality test underscores causal
bi-directional relationship among these variables. Based on these
findings, the policymakers ensure improvement in the financial
system and promote financial inclusion to increase energy efficiency and improve their citizen’s living standards.

Keywords

Financial inclusion; low carbon energy sources; energy efficiency; RCEP

Hrčak ID:

302868

URI

https://hrcak.srce.hr/302868

Publication date:

31.3.2023.

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