Dynamic linkages between financial inclusion and carbon emissions: Evidence from selected OECD countries

Zaidi, Syed Anees Haider; Hussain, Muzzammil; Zaman, Qamar Uz

doi:10.1016/j.resenv.2021.100022

Cited by 148 publications

(99 citation statements)

References 49 publications

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“…The first panel of Table 6 indicating the results of highly globalized economies (HGE), indicating the negative significant impact of financial inclusion (FNII) and globalization (GLOB) on CO2 emission. These results of financial inclusion impact on CO2 emission are similar to the several previous studies see for example, (Le and Sarkodie 2020 ; Zaidi et al 2021 ). Similarly the similar impact of globalization on CO2 emission can be also seen in the empirical studies of (Alola and Joshua 2020 ; Liu et al 2020 ; Shahbaz et al 2021 ).…”

Section: Resultssupporting

confidence: 92%

“…Furthermore, the authors claimed that fostering financial inclusiveness can aid in mitigating the negative environmental effects of economic expansion and restoring environment welfare. In a latest studies on the advanced countries over the timeframe 2004, Zaidi et al (2021 used the dynamic commonly correlated effect (DCCE) estimator to investigate the dynamic impacts of financial inclusion on Carbon emission. They stated that increased levels of financial inclusiveness lowered CO2 emissions in the long and short term.…”

Section: Financial Inclusion and Environment Qualitymentioning

confidence: 99%

“…Numerous research have looked at the environmental consequences of financial development throughout the world, but the influence of financial inclusion in environment quality is recently debated topic. A very limited studies have examined the consequences on environment quality, see for instance (Le and Sarkodie 2020 ; Renzhi and Baek 2020 ; Zaidi et al 2021 ).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Environmental concerns of financial inclusion and economic policy uncertainty in the era of globalization: evidence from low & high globalized OECD economies

Ullah

Ali

Shah

et al. 2022

Environ Sci Pollut Res

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Environmental consequences of financial aspects, policy uncertainties and rapid globalization is the topic of intense debate in present years. However, this study contribute to existing literature in an innovative way. We classified the 33 OECD economies in two group’s lower globalized economies (LGE) and highly globalized economies (HGE), based on their level of globalization. Considering the cross-sectional dependency and slope heterogeneity in the data this study employed the Augmented Mean Group method to estimate the influence of financial inclusion, economic policy uncertainty and globalization on the environment quality of both groups for the period 1996–2019. The results revealed a negative significant impact of financial inclusion, while a positive significant impact of economic policy uncertainty on CO2 emissions in both groups, LGE and HGE. However the globalization estimated to have positive impact on CO2 emission in LGE’s, in HGE’s it is significantly impeding the CO2 emission. The interaction of globalization with financial inclusion and economic policy uncertainty respectively found negative and positive to effect the CO2 in both LGE’s and HGE’s. The study suggests that, LGE’s are need to prepare for economic globalization, move toward adopting energy-efficient technology and promote trade in less-polluting products in order to sustain their environment quality. The outcomes of this study are robust by employing different model specifications.

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Section: Resultssupporting

confidence: 92%

Section: Financial Inclusion and Environment Qualitymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Environmental concerns of financial inclusion and economic policy uncertainty in the era of globalization: evidence from low & high globalized OECD economies

Ullah

Ali

Shah

et al. 2022

Environ Sci Pollut Res

View full text Add to dashboard Cite

show abstract

“…For the most relevant studies, Le et al (2020) and Zaidi et al (2021), positive correlation between the development of financial inclusion and carbon emissions has been observed. Using cross country panel data, these two studies argue that the improvement in financial inclusion leads to more intensive carbon emission.…”

Section: Literature Reviewmentioning

confidence: 95%

Financial Inclusion and Carbon Reduction: Evidence From Chinese Counties

Yang

Lü

Liu

et al. 2022

Front. Environ. Sci.

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With the improvement of inclusive financial system, China’s economy has made significant development and growth. It worth in-depth investigation on environmental impact of financial inclusion, since growing GDP usually accompanied by more intensive carbon emission. This paper aims to reveal whether financial inclusion contributes to the carbon reduction in China using county-level dataset. A fixed-effect panel regression approach is adopted to examine the impact of financial inclusion on county-level regional carbon emissions. The estimation results imply that financial inclusion plays an important role in reducing carbon emissions. The mediation effect analysis reveals two channels through which financial inclusion imposes negative impact on the level of regional carbon emissions. One is to elevate the carbon sequestration capacity by increasing vegetation coverage, and the other is to improve the industrial structure through enhanced financial support. In addition to being a bridge between economic opportunity and output, financial inclusion can also act as an effective measure for addressing climate change.

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“…To capture the impact of nancial inclusion on economic growth and CO2 emissions in Asian emerging economies, we have borrowed the following long-run model from Van et al (2021) and Zaidi et al (2021).…”

Section: Methods and Datamentioning

confidence: 99%

The Trade-Off Between Economic Performance and Environmental Quality: Does Financial Inclusion Asymmetrically Matter for Emerging Asian Economies?

Xie

Hafeez²,

Usman

2021

Preprint

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This study examines the role of financial inclusion on the environment-economic performance in the top five Asian emerging economies. The data used for empirical investigation covers the time period from 1995 to 2019. Financial inclusion is measured through bank branches, bank credit, and insurance premiums. To check long-run associations, the panel-ARDL approach has been employed for empirical analysis. The empirical evidence confirms the significant associations between financial inclusion-GDP nexus and financial inclusion-CO2 nexus. The findings show that bank branches and bank credit have a significantly positive impact on economic growth and CO2 emissions in the long-run. However, insurance premium has no impact on economic growth but it exerts a significant negative impact on carbon emissions in the long-run. Furthermore, energy consumption is highly sensitive to economic growth and carbon emissions. The study delivers imperative points for pollution eradication and attaining sustained economic growth. There is a need for government-level efforts to align the targets of financial inclusion with economic growth and environmental policies.

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Dynamic linkages between financial inclusion and carbon emissions: Evidence from selected OECD countries

Cited by 148 publications

References 49 publications

Environmental concerns of financial inclusion and economic policy uncertainty in the era of globalization: evidence from low & high globalized OECD economies

Environmental concerns of financial inclusion and economic policy uncertainty in the era of globalization: evidence from low & high globalized OECD economies

Financial Inclusion and Carbon Reduction: Evidence From Chinese Counties

The Trade-Off Between Economic Performance and Environmental Quality: Does Financial Inclusion Asymmetrically Matter for Emerging Asian Economies?

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