PurposeThis paper aims to assess whether digital financial inclusion (DFI) supports Egypt's CO2 reduction efforts. More specifically, this paper examines the dynamics between digital finance, traditional financial inclusion (TFI) and renewable energy on carbon emission in Egypt.Design/methodology/approachThe study employed the autoregressive distributive lag (ARDL) model for Egypt over the period 1990–2020 to estimate an extended STIRPAT model for long-run linkages of DFI, traditional bank-based financial inclusion and renewable energy on carbon emissions, along with other control variables.FindingsThe results showed that using digital financial services limits carbon emissions in the long run but not in the short run, indicating that Egypt is still in its early stage of digitalization (DFI < 0.5). Moreover, renewable energy proved to have a significant negative impact on carbon emissions in the long run, implying that more investments in renewable energy projects will improve environmental quality.Practical implicationsThe findings from this study help policymakers incorporate DFI policies into climate change adaptation strategies and execute better green growth policies that integrate DFI with energy-efficient technologies investments for a better environment.Social implicationsFoster economic growth and sustinabaility.Originality/valueThis study contributes to the literature by quantifying the DFI in Egypt using a two-stage principal component analysis and then examines its impact on carbon emission reduction efforts. In addition, this paper extends the research on the environment from the perspective of digital finance, making it possible to excavate more deeply into the relationship between financial inclusion and carbon emission and draw more explicit policy implications for sustainable economic growth.

Digital finance has witnessed rapid development in the last few years that might threaten the way traditional financial services are being used. It creates new opportunities for small businesses and low – income groups that have no or limited access to formal financial services. Therefore, digital financial inclusion plays an important role in enhancing a country`s financial inclusion, meeting some sustainable development goals and achieving higher economic growth. Although few studies took the attempt to measure the inclusiveness of the financial system in Egypt, however, no study did quantify the financial inclusion for Egypt. This paper aims to fill in this gap by contributing to the literature in two ways; first, by introducing a novel comprehensive financial inclusion index for the first time using a three – stage principle component analysis (PCA). Second, we build two separate indices; traditional and digital financial inclusion indices through combining access, usage, and barriers indicators for traditional financial index while for digital financial index we combined access and usage indicators. Findings revealed that both “traditional financial index” and “digital financial index” are equally important in explaining the overall financial inclusion of Egypt and thus, digital finance is seen as a complement rather than a substitute to the traditional financial services. Moreover; our results also revealed that although Egypt has low level of digital financial inclusion (0.31), digital finance is playing a significant and positive role in achieving greater financial inclusion as evidenced by improving the overall index from low (0.41) to relatively high inclusion level (0.52).

Sustainability has now emerged as a critical priority for businesses. With consumers' increasing concern about the environment, many businesses are fast investigating and exploring new approaches, creating new ideas, and preparing different approaches to position their green brands in the minds of the customers as a solution for environmental problems. This study contributes to the literature by the being among the first to test the impact of green purchase intention on carbon emissions in Egypt. A new conceptual framework was formed by integrating three important theories: theory of planned behaviour (TPB), Cognition–affection–behavior theory of attitude (CAB) and Value Belief Norm (VBN) theory of environmentalism. The proposed model incorporates green brand positioning, consumer`s green attitude, perceived environmental knowledge, green behaviour, green brand knowledge, and green purchase intention as main factors. A questionnaire was designed, and we obtain 231 eligible responses. We used PLS – SEM method to test the validity and reliability of the measurement model and then testing the hypothesises using structural equation model. The finding revealed that higher consumer`s intention to purchase green brands (GPI) would lead to lower carbon emissions (CE) and thus improve the environmental quality. We found also a positive and significant effect of consumers' attitude (GA) towards green brands and green behaviour on consumers' intention to purchase green brands (GPI). On the other hand, green brand positioning (GBP), perceived environmental risks (PEK), and green brand knowledge (GBK) have insignificant impact on consumers' intention to purchase green brands in Egypt. Moreover, the results showed that perceived environmental knowledge (PEK) and green brand knowledge (GBK) have indirect effect on consumer's intention to purchase green products through their effect on consumers' attitude and thus CGA is said to play a significant intermediary role. Furthermore, GBK is said to mediate the relation between GBP and GPI.

Digital finance has witnessed rapid development in the last few years that might threaten the way traditional financial services are being used. It creates new opportunities for small businesses and lowincome groups that have no or limited access to formal financial services. Therefore, digital financial inclusion plays an important role in enhancing a country`s financial inclusion, meeting some sustainable development goals and achieving higher economic growth. Although few studies took the attempt to measure the inclusiveness of the financial system in Egypt, however, no study did quantify the financial inclusion for Egypt. This paper aims to fill in this gap by contributing to the literature in two ways; first, by introducing a novel comprehensive financial inclusion index for the first time using a threestage principle component analysis (PCA). Second, we build two separate indices; traditional and digital financial inclusion indices through combining access, usage, and barriers indicators for traditional financial index while for digital financial index we combined access and usage indicators. Findings revealed that both "traditional financial index" and "digital financial index" are equally important in explaining the overall financial inclusion of Egypt and thus, digital finance is seen as a complement rather than a substitute to the traditional financial services. Moreover; our results also revealed that although Egypt has low level of digital financial inclusion (0.31), digital finance is playing a significant and positive role in achieving greater financial inclusion as evidenced by improving the overall index from low (0.41) to relatively high inclusion level (0.52).