Original scientific paper
https://doi.org/10.1080/1331677X.2022.2053363
Does financial inclusion promote a green economic system? Evaluating the role of energy efficiency
Muhammad Tufail
Lin Song
Alican Umut
Nilufar Ismailova
Zebo Kuldasheva
Abstract
There are very few studies on the role of financial inclusion and
energy efficiency in promoting a sustainable environment in the
existing literature. These studies do not address or link financial inclusion to CO2 emissions in any way. Therefore, the purpose of this
study is to look into the role of financial inclusion and energy efficiency on carbon emissions, as well as exports, imports, and gross
domestic product (G.D.P.) in the BRICS economies from 1990 to 2020.
The study additionally considers the panel data’s integration, cointegration, cross-country interdependence, and heterogeneity features,
resulting in reliable findings and well-founded policy recommendations. The panel Westerlund cointegration tests confirm the long-run
relationships among CO2 emissions, financial inclusion, energy efficiency, exports, imports, and G.D.P. Furthermore, the long and shortrun outcomes of CS-ARDL revealed that financial inclusion, imports
size, and G.D.P. raise CO2 emissions, while energy efficiency and
exports size reduce CO2 emissions. The study proposes increasing
financial inclusion for controlling pollution and achieving sustainable
environmental goals in light of these findings. Public-sector efforts
are needed to integrate financial inclusion goals with continued
improvements in energy efficiency and environmental policies.
Keywords
financial inclusion; energy efficiency; international trade; consumptionbased CO2
Hrčak ID:
303017
URI
Publication date:
31.3.2023.
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