Does financial inclusion and education limit CO2 emissions in China? A new perspective

A study on the potential of higher education in reducing carbon intensity

The Chinese government has established definitive goals to reach a "carbon peak" by 2030 and achieve "carbon neutrality" by 2060. Investigating the attainment of these emission reduction objectives while simultaneously fostering regional economic growth and enhancing living standards holds critical importance. This study examines the link between higher education and carbon intensity across China's thirty provincial-level administrative regions, employing fixed effects models on provincial panel data spanning 2001-2020. The findings, validated through robustness tests and a mediation effect model, elucidate the mechanisms by which higher education influences carbon intensity. Notably, the results reveal that enhancing higher education markedly lowers carbon intensity; specifically, a 1% increase in the logarithmic transformation of per capita investment in higher education in a province decreases its carbon intensity by 0.219%. Additionally, higher education's output similarly contributes to reductions in carbon intensity. The influence of higher education on reducing carbon intensity is particularly pronounced in the central and western regions of China. Moreover, higher education facilitates the reduction of carbon intensity through mechanisms such as promoting environmental consciousness, advancing industrial structure, and encouraging technological innovation.

Financial inclusion and environmental pollution in sub-Saharan Africa: moderating effects of economic growth and renewable energy

A thriving literature exists about the role of financial inclusion in socio-economic development. Nevertheless, the environmental effects of financial inclusion are largely unknown in the literature, especially in sub-Saharan African countries. Therefore, this study explores the association between financial inclusion and CO2 emissions utilizing data from 23 sub-Saharan Africa for the period 2004-2019. Based on different estimation methods such as dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS), canonical correlation regression (CCR), and an instrumental variable generalized-method of moment (IV-GMM), the results show that financial inclusion is responsible for a substantial increase in CO2 emissions. In addition, financial inclusion moderates economic growth, resulting in higher CO2 emissions. Alternatively, financial inclusion moderates renewable energy use to lower CO2 emissions. The outcomes also verify the presence of the Environmental Kuznets Curve hypothesis (EKC). This study proposes uniting financial inclusion and environmental policies as a strategy for reducing CO2 emissions in sub-Saharan Africa.

Financial inclusion, environmental degradation, and the moderating role of ICT: a global perspective

This study aims to investigate the global perspective on the relationship between financial inclusion and environmental degradation, taking into account the potential moderating role of information and communication technology (ICT). The research utilizes panel data from 131 countries, covering the period of 1995 to 2019. The findings show that financial inclusion has significant and positive impact on carbon emissions, implying that as financial inclusion increases, so do carbon emissions. Moreover, our findings reveal a significant negative moderating effect of the ICT on the relationship between financial inclusion and carbon emissions. This implies that the impact of financial inclusion on carbon emissions is contingent upon the level of ICT development. The robustness of these findings is confirmed through the use of alternative proxies for the explanatory and moderating variables, as well as alternative estimation methods. The outcomes of this study carry significant implications for both policy and practice.

Financial inclusion and environmental pollution in Türkiye: Fresh evidence from load capacity curve using AARDL method

Sustainability is an important concept for the whole world. Generally, in order to measure the sustainability of the environment, carbon dioxide emissions and ecological footprint indicators are used. However, these variables do not reflect the supply side of natural resources. Therefore, load capacity factor is an important environmental indicator for a sustainability. Environmental assessment based on the load capacity factor is more meaningful. Besides, improved access to financial services can contribute to environmental sustainability. The effect of financial inclusion on the load capacity factor in Türkiye has not been examined in the current literature. In this context, this study analyzes the impact of financial inclusion, hydropower energy consumption, and life expectancy at birth on environmental sustainability from a different perspective by focusing on load capacity factor. To this end, this study used the newly developed Augmented ARDL method to determine the cointegration relationship between the series and measure the values of the long-term coefficients. Based on the Augmented ARDL method, there is a cointegration relationship between the series. In the long run, hydropower energy consumption reduces pollution, while financial inclusion decreases load capacity factor. The effect of life expectancy at birth on pollution is not significant. Moreover, the results reveal that the load capacity curve hypothesis is valid in Türkiye. As a result, the Turkish government should promote renewable energy sources, especially hydropower energy consumption, align financial services with pollution reduction measures, and contribute to the creation of an environmentally conscious society.

Investigating the environmental externalities of digital financial inclusion and the COVID-19 pandemic: an environmental sustainability perspective

Financial inclusion enhances economic growth by facilitating businesses and individuals to access financial resources. Financial inclusion also contributes to environmental sustainability; however, very few studies have explored the link between financial inclusion and the environment. Also, the impact of the COVID-19 pandemic on environmental performance remains unexplored. From this perspective, this study probes the objective of whether financial inclusion and environmental performance co-move in COVID-19 in highly polluted economies. This objective is tested with the help of 2SLS and GMM approaches. The study also gets assistance from a panel quantile regression approach for empirical tasks. The results show that financial inclusion and the COVID-19 pandemic have a negative impact on CO2 emissions. Based on these findings, the study suggests that highly polluted economies should promote financial inclusion and assimilate environmental policies with financial inclusion policies to attain environment-related goals.

Relationship between financial inclusion and carbon emissions: International evidence

The nexus between financial inclusion and carbon emissions is becoming an increasingly important topic, given the augmented awareness of the negative impacts of climate change and carbon emissions on the environment and human health. In this study, we examine the impact of financial inclusion on carbon emissions using the STIRPAT framework for 102 countries from 2004 to 2020. We measure financial inclusion as a composite index, using principal component analysis (PCA) from five financial inclusion proxies. Our robust panel regression estimations suggest an N-Shaped relationship between financial inclusion and carbon emissions. The N-shaped Environmental Kuznets Curve (EKC) implies that the impact of financial inclusion on carbon emission is nonlinear and changes from an inverted U-shaped to a U-shaped. This finding is strong in developing countries and weak in advanced countries. It is also robust across our two normalized measures of financial inclusion as well as across different estimation techniques. These findings suggest adapting a universal environmental strategy that enhances financial inclusion through strong and accessible financial systems, particularly for low-income countries. Our results further suggest that government authorities and policymakers need to develop well-directed and inclusive financial policies that consider the varying levels of governance, regulations, and income across countries.

Financial outreach, financial innovation, and sustainable development in Africa

There has been a call on policy makers in the African continent to formulate and implement initiatives that help to realise some of the Sustainable Development Goals (SDGs), due to the low performance of the continent in terms of meeting the targets of the SDGs. Because of this, the study sought to investigate how banks' financial outreach and intermediation contribute to sustainable development in the continent. Information was collected on 34 African economies for a period of 11 years spanning from 2010 to 2020. The study employed the two-step system generalised method of moments technique to estimate the findings. It was discovered that financial outreach has a significant positive and negative relationship with sustainable development, depending on the indicator used to measure outreach. On various dimensions, financial outreach had a negative influence on carbon dioxide emissions, a positive impact on economic sustainability, and an inverse relationship with social sustainability. It was also revealed that financial innovation has a significant negative link with sustainable development in Africa. Additionally, the findings revealed that both financial outreach and innovation serve as moderating variables in the finance/development nexus. The study recommends that governments and policy makers in various African countries work together with financial service providers to ensure fair, flexible, and alluring interest rates on loans to the underprivileged, disadvantaged ones in society, and vulnerable businesses to smooth their consumption and boost their businesses.

Empirical nexus between financial inclusion and carbon emissions: Evidence from heterogeneous financial economies and regions

We aim to investigate the empirical nexus between carbon emissions and financial inclusion for a panel of 74 countries from 2004 to 2020 based on the environment kuznets curve (EKC). Using the advanced panel data analysis framework of Driscoll-Kraay, Generalised linear model, and Prais-Winsten test for the entire sample and heterogeneous subsamples, we document an inverted U-shape relationship between carbon emissions and inclusive financial system. Notably, an inverted U-shape relationship is established in developed, emerging and frontier economies except in standalone economies. Furthermore, the analysis of region-wise subsamples reveals that nonlinear relationship varies across regions. The heterogeneous response of financial inclusion in curtailing environmental degradation provides vital policy insights. It suggests that financial inclusion can be used as a mitigation measure based on well-structured and robust regulatory and legal frameworks. These frameworks would create synergy effects of financial inclusion in designing policies and addressing issues related to sustainable development and climate change.

A PLS-SEM approach to determine farmers' awareness about climate change mitigation and adaptation strategies: pathway toward sustainable environment and agricultural productivity

This research was conducted in a significant agricultural region to gauge farmers' knowledge of climate change adaption strategies. We employed a semi-structured questionnaire based on the literature; it was broken up into sections, and used certain statistical techniques (PLS-SEM) to examine the results. Farmers who had sufficient assets and resources thought they were safer and could withstand the adverse effects of climate change. A total of 900 completed questionnaires were gathered to investigate the link between the control, moderator, and DV variables in the future. As a consequence, the PLS-SEM path analysis findings showed that our model is fit. PLS-SEM direct path analysis revealed AM > FACC, UA- > FACC, SA- > FACC, FS- > FACC, PR- > FACC, and SI- > FACC are significant. The established hypotheses H1-H6 are strengthened by these findings. We also examined the respondents' ages and genders to use as controls; whereas gender showed no correlation with FACC, there was a strong link between age and the dependent variable. There is no statistically significant correlation between gender and climate change awareness, but older people tend to have a broader understanding of the topic and its consequences. Education significantly moderates the relationship of farmer's awareness (climate change) associated with AM, UA, SA, FS, PR, and SI. depicts the moderation role of education on the relationship between AM*Education- > FACC, UA*Education- > FACC, SA*Education- > FACC, FS*Education- > FACC, PR*Education- > FACC, and SI*Education- > FACC. H2a and H5a in this study showed significant correlations with education as a moderator; however, H1a, H3a, H4, and H6a did not demonstrate any moderator relationships. There is a medium to strong correlation between various factors, and the correlation values of a few chosen variables are significant when compared to all other variables in the current study. Highly significant correlations were found between PR, SA, SI, and UA with FACC. Governmental policies and effective monitoring systems will be developed as a result of the research to enable integrated and sustainable water development.

Nonlinear and nonparametric causal relationship between financial inclusion and sustainable environment in South Asia

This study analyzes the causal connection between financial inclusion and carbon emission in selected South Asian countries through a quantile technique-based linear Granger and non-parametric causality test. The analysis of the study covers quarterly data from 1980 Q1 to 2019 Q4. However, the linear Granger causality assessment outcome does not indicate any causal relationship between financial inclusion and carbon emission. In contrast, results from non-parametric assessment reveal a non-linear connection between the variables. The non-parametric test results of the South Asian countries exhibit that financial inclusion leads to carbon emission, which instigates the deterioration of the environment, except for Bhutan. Subsequently, creating awareness by promoting renewable energy resources is essential while investing in fuel-efficient technology to reduce the dependence on fossil fuels. The results of this study provide significant information to the governments and policymakers in emerging countries to improve financial literacy among people to reduce the risk of global warming by encouraging investment in energy-efficient resources.

Pro-environmental behavior–Renewable energy transitions nexus: Exploring the role of higher education and information and communications technology diffusion

The most accepted solution to deal with the problems of global warming and climate change is to transform the energy sector by moving toward renewable energy. Therefore, the primary focus of the analysis is to examine the role of renewable energy consumption, higher education, and ICT in improving environmental quality and green growth in China. We have employed the quantile ARDL model to obtain the short-and long-run estimates. According to the findings of QARDL, the long-run estimated coefficients of renewable energy consumption and higher education are positively significant in most quantiles. However, in the long run, the estimates attached to ICT are insignificant in the CO2 emissions model in most quantiles. On the other hand, the estimates of renewable energy consumption are significantly positive from the 50th quantile and onward in the green growth model, confirming that the higher the renewable energy in the economy, closer it will get to the target of green economic growth. The long-run estimates of higher education and ICT are positively significant at most quantiles in the green growth model. In the short run, renewable energy consumption turned out to be the most critical determinant of CO2 emissions and green growth.

Examining the effects of information and communications technology on green growth and environmental performance, socio-economic and environmental cost of technology generation: A pathway toward environment sustainability

Human capital and ICT have a significant role in determining human development. The impacts of ICT and human capital on green growth and environmental sustainability should be explored for sustainable economic development. This research contributes to the literature on the role of ICTs and human capital in the determination of green growth and environmental performance. Based on time-series data 1990-2019, the study intends to investigate the impact of ICTs and human capital on environmental and green growth performance for China. The study reports that ICTs tend to reduce CO2 emissions and improve green growth in the long-run. However, education reduces CO2 emissions in the long-run but does not produce any significant impact on green growth in the long-run. It is suggested that government should invest in environmental efficiency and environmental technologies simultaneously with human capital that could significantly contribute to pollution reduction. Lastly, policies to increase human capital should be implemented simultaneously with policies to promote ICTs contribution in order to confirm green growth and environmental protection.

Environmental concern in the era of digital fiscal inclusion: The evolving role of human capital and ICT in China

To achieve environmental sustainability, the role of human capital and financial inclusion has been debated in limited empirical studies. Employing a reliable ARDL model approach, this study examines the dynamic link between human capital and ICT, financial inclusion, and CO2 emissions using the China economy dataset over the period 1998–2020. The vivacious side of human capital shows that literacy rate and average year of schooling curb CO2 emissions in long run. The results of human capital are also based on facts in magnitude as well as in direction. Also, empirics unfold that digital financial inclusion significantly increases CO2 emissions. Based on these novel findings, a wide set of economic policies are repaired for environmental quality. Environmental education should be considered at early levels of education. The authorities and policymakers should fix energy-related issues through education. The China government should stimulate the educational sector to conduct a clean and green revolution that acts as a mechanism for a green and clean economy. This study's finding is more effective than the previous unlike empirical studies for policy-making because of the advanced econometric method.

Environmental Emission Validation Analysis Using a Dual-Fuel Engine

The research work presents the results of testing using an internal combustion engine ignition/compression using diesel and LPG mixtures without preheating. The energy performance of regulated brake emissions and changes in fuel consumption for a compression ignition engine is investigated in this study. It is assured that the engine's operation is not harmed as a result of the installation of this mix. The engine produces torque and power when it is working according to the design parameters. In tests with these combinations, results with a thermal efficiency of 10% were obtained, which was higher than the 5% obtained in diesel tests. It is used in compression ignition engines to offer a fuel source for the generation of electrical energy.

A systematic PLS-SEM approach on assessment of indigenous knowledge in adapting to floods; A way forward to sustainable agriculture

The present study was conducted in one of the major agriculture areas to check farmers indigenous knowledge about the impacts of floods on their farming lives, food security, sustainable development, and risk assessment. In the current study, primary data was used to analyze the situation. A semi-structured questionnaire was distributed among farmers. We have collected a cross-sectional dataset and applied the PLS-SEM dual-stage hybrid model to test the proposed hypotheses and rank the social, economic, and technological factors according to their normalized importance. Results revealed that farmers' knowledge associated with adaption strategies, food security, risk assessment, and livelihood assets are the most significant predictors. Farmers need to have sufficient knowledge about floods, and it can help them to adopt proper measurements. A PLS-SEM dual-stage hybrid model was used to check the relationship among all variables, which showed a significant relationship among DV, IV, and control variables. PLS-SEM direct path analysis revealed that AS (b = -0.155; p 0.001), FS (b = 0.343; p 0.001), LA (b = 0.273; p 0.001), RA (b = 0.147; p 0.006), and for FKF have statistically significant values of beta, while SD (b = -0.079NS) is not significant. These results offer support to hypotheses H1 through H4 and H5 being rejected. On the other hand, age does not have any relationship with farmers' knowledge of floods. Our study results have important policy suggestions for governments and other stakeholders to consider in order to make useful policies for the ecosystem. The study will aid in the implementation of effective monitoring and public policies to promote integrated and sustainable development, as well as how to minimize the impacts of floods on farmers' lives and save the ecosystem and food.

Financial inclusion and its influence on economic-environmental performance: demand and supply perspectives

In this study, we want to test the impact of financial inclusion on the economic growth and the environmental quality of OBOR economies. We have selected four different proxies of financial inclusion, two from the perspective of the supply side and two from the perspective of the demand side. For empirical analysis, we have applied 2SLS and GMM methods. In the economic growth model, among the variables of financial inclusion, only the variable of ATMS is positively significant in the 2SLS approach; however, when we apply the GMM approach, two variables, i.e., ATMS and branches, are positively significant implying that supply-side financial inclusion is vital for economic growth in OBOR countries. On the other side, the variables of financial inclusion, whether supply side or demand side, exerted a positive impact on the CO2 emissions irrespective of the estimation techniques, i.e., 2SLS and GMM. These findings imply that financial inclusion, in general, causes CO2 emissions to rise.

Financial inclusion and environmental sustainability in Ghana: application of the dynamic ARDL estimator

Numerous explorations have been conducted on the determinants of Ghana's environmental quality. However, to the best of my knowledge, there has been no research on the connection between financial inclusion and environmental sustainability in the country. This study was therefore conducted to help fill that gap. In attaining the aforestated goal, econometric techniques that yield valid and reliable outcomes were engaged. From the results, all the series were first differenced stationary and cointegrated in the long run. The DARDL estimator with the support of the conventional ARDL estimator was adopted to explore the marginal effects of the predictors on the explained variable, and from the results, financial inclusion worsened environmental sustainability in the nation via high carbon emissions. Also, foreign direct investments degraded the country's ecological quality validating the pollution haven hypothesis. Finally, trade openness, population growth, and energy consumption were detrimental to environmental sustainability in the nation. On the causal directions amidst the series, unidirectional causalities from financial inclusion and trade openness to carbon effusions were disclosed. Also, feedback causalities between foreign direct investments and carbon emissions; between population growth and carbon effluents; and between energy consumption and carbon exudates were unfolded. The study recommended among others that, financial establishments should not fund the production of carbon-intensive goods, but those that are friendly to the environment. The government can also help to improve environmental sustainability by establishing regulations to mandate financial entities to engage in eco-friendly activities.

Revealing the Effects of Corporate Governance on Green Investment and Innovation: Do Law and Policy Matter?

Green investment (GI) and innovation performance are key factors of sustainable green development. GI and innovation have become a trendy solution to minimize environmental issues in the previous few decades. We investigate the effects of corporate governance, environmental law, and environmental policy stringency on GI and environmental innovation (EI) using Chinese time-series data from 1998 to 2020. Short and long-run findings indicate that corporate governance has a positive and significant impact on GI and innovation in China. However, environmental law has positive and significant effects on GI and innovation in the short run and long run. Furthermore, environmental policy stringency has an insignificant impact on GI but stimulates green innovation both in the short and long run. The study also reveals that education has a significant positive impact on green innovation both in the short and long-run. The short and long-run results propose essential policy implications.

Financial inclusion and its influence on renewable energy consumption-environmental performance: the role of ICTs in China

Financial inclusion means that individuals and businesses can easily avail financial goods and services at an affordable cost. It is widely recognized that financial inclusion can help preserve the environment by increasing the consumption of renewable energy sources. Hence, our basic aim is to investigate whether financial inclusion has any effect on renewable energy consumption and environmental quality in China. To get the estimates of the variables, we have preferred the ARDL model. The estimates of the model confirm that a rise in the number of ATMs and total insurance has a positive impact on renewable energy consumption in China in the long run. Conversely, an increase in the number of ATMs and total insurance negatively affects CO₂ emissions in China. In general, we can say that financial inclusion increases renewable energy consumption and reduces CO₂ emissions in China. Therefore, by using financial inclusion, policymakers should try to divert the resources towards environmentally friendly consumption and production activities.

Environmental Impact of Urbanization, Bank Credits, and Energy Use in the UAE—A Tourism-Induced EKC Model

The United Arab Emirates (UAE) has developed rapidly into one of the highest per capita income nations globally. The travel and tourism sector is a central contributor to the Gross Domestic Product (GDP), employment, foreign exchange earnings, and the country’s economic diversification strategy. However, the rapid growth of the sector and increase in international tourist arrivals are also major contributors to carbon emissions and long-term environmental challenges. In this context, we employed a tourism-induced Environmental Kuznets Curve (EKC) model for the UAE from 1984 to 2019. The study applied an Autoregressive Distributed Lag (ARDL) model to determine the marginal impact of tourist arrivals and related variables, namely, bank credits to the private sector, urbanization, and energy use, on CO2 emissions. The Pesaran bounds test indicated redundancy of short run estimates. The long-run coefficients confirmed the EKC hypothesis of inverted U-shape for carbon emissions and per capita income, along with environmental degradation due to tourist arrivals and financial development. Notably, urbanization and energy use highlighted the positive steps taken by the government. Granger causality tests indicated a unidirectional association from GDP, bank credits, and energy consumption to carbon emissions. Importantly, tourist arrivals and urbanization had bidirectional causality with carbon dioxide levels. This study is the first to apply the tourism-induced EKC model to the UAE, and the findings have important implications for policymakers and practitioners. The causality results highlight the need to balance tourism targets and sustainable economic growth through the adoption of ‘green’ standards. The results also indicate the potential importance of financial sector efforts to boost green investments and implement clean energy-related technologies.

Assessing the Influence of Financial Inclusion on Environmental Degradation in the ASEAN Region through the Panel PMG-ARDL Approach

The rise of financial inclusion in recent years has attracted the attention of environmental economists to assess its role in environmental degradation. Therefore, this study was carried out with the aim of exploring the impact of financial inclusion on environmental degradation in the ASEAN region using balanced panel data for the period 2000–2019. First, panel unit root tests were employed to examine each data series for stationarity. Findings of the panel unit root tests depicted that all data series are stationary at the first difference. Second, Westerlund and Edgerton’s error correction panel cointegration test was employed to handle heterogeneity and cross-sectional dependence. Third, the PMG-ARDL approach was used to explore the long- and short-term effects of financial inclusion on environmental degradation. Findings of the PMG-ARDL found that financial inclusion, energy use, economic growth and urbanization are causing environmental degradation in the ASEAN region. Furthermore, the financial inclusion coefficient is 0.15, which is statistically significant at 5%. In the short run, a 1% increase in financial inclusion results in a 0.15% increase in environmental degradation, ceteris paribus. In the long run, financial inclusion and CO2 have a positive association that is statistically significant at 5% and has a coefficient value of 0.42. This implies that a 1% increase in financial inclusion results in a 0.42% increase in environmental degradation in the long run. Finally, this study recommends that financial inclusion must be incorporated into climate change adaptation efforts at the local, national and regional levels to address the side effects of increased CO2 emissions.