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

The role of ICT investment, digital financial inclusion, and environmental tax in promoting sustainable energy development in the MENA region: Evidences with Dynamic Common Correlated Effects (DCE) and instrumental variable-adjusted DCE

His research investigates the interplay among investment in Information and Communication Technology [ICT], digital financial inclusion, environmental tax policies, and their impact on the progression of sustainable energy development within the Middle East and North Africa [MENA] region. Recognizing the distinctive hurdles impeding sustainable energy advancement, effective policy formulation and implementation in MENA necessitate a comprehensive understanding of these variables. Employing a Dynamic Common Correlated Effects [DCE] model alongside an instrumental variable-adjusted DCE approach, this study explores the relationship between ICT investment, digital financial inclusion, environmental tax, and sustainable energy development. The DCE model facilitates the analysis of dynamic effects and potential correlations, while the instrumental variable-adjusted DCE model addresses issues pertaining to endogeneity. The results indicate that both ICT investment and the promotion of digital financial inclusion significantly and positively impact sustainable energy development in the MENA region. Additionally, the study underscores the importance of environmental tax implementation in fostering sustainable energy advancement, highlighting the critical role of environmental policy interventions. Based on these findings, governmental prioritization of ICT investment and initiatives for digital financial service integration is recommended to bolster sustainable energy growth in MENA. Furthermore, the adoption of efficient environmental tax measures is essential to incentivize sustainable energy practices and mitigate environmental degradation. These policy recommendations aim to create a conducive environment for sustainable energy progression in the MENA region, contributing to both economic prosperity and environmental conservation.

Linkages between ICT diffusion, renewable energy consumption, and carbon emissions: a comparative analysis of SAARC, MENA, and OECD countries

This paper examines the linkages between information and communication technology (ICT) diffusion, renewable energy consumption (REC), and carbon (CO2) emissions across three distinct regions: the South Asian Association for Regional Cooperation (SAARC), Middle East and North Africa (MENA), and Organization for Economic Cooperation and Development (OECD) nations. We explore the causal pathways linking these variables and perform a comparative assessment of region-specific patterns with their policy implications. Utilizing a panel dataset of 28 countries from 1998 to 2019, we employ panel ARDL, FMOLS, DOLS, and D-H causality tests. The comprehensive analysis of the sample reveals that ICT development enhances CO2 emissions, whereas REC reduces emissions. However, the comparative analysis suggests a positive linkage between ICT diffusion and CO2 emissions in MENA and OECD countries but a negative linkage in SAARC countries. Further, REC substantially reduces emissions in MENA and OECD countries but has an insignificant effect in SAARC countries. Our findings corroborate the first-order effect of ICT (negative environmental impact) in MENA and OECD countries, with contextual variations attributed to economic structure, financial sector growth, trade openness, and industrialization. These findings offer pivotal insights for policymakers to leverage ICT capabilities and REC to attain sustainable development and mitigate climate change consequences.

The role of digital finance for the growth of renewable energy: evidence from China

Developing renewable energy (RE) is the inevitable choice for China to achieve its climate goals. However, financing RE investments remains challenging. Meanwhile, China's digital finance (DF) is profoundly influencing the trajectory of the energy transition. This study empirically investigates the role of DF on the growth of RE, what aspects of DF matter, and its geographical attenuation process, taking both spatial and temporal dimensions into consideration. The empirical results show that DF and its coverage breadth and usage depth can facilitate RE development in both local and neighboring regions, with a comparatively limited effect of digitalization level. The impact of DF on the growth of RE is heterogeneous and has been declining over time. Specifically, this effect is observable only in the eastern regions. The spillover effects of DF on RE development vary in different spatial thresholds, which has clear boundary effects and geographical decay characteristics.

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.

How do financial inclusion and renewable energy collaborate with Environmental quality? Evidence for top ten countries in technological advancement

The environmental situation of our planet is seriously degraded due to the massive spread of greenhouse gases. Several aspects can influence the quality of the environment. The present study debates the effect of financial inclusion (FI) and renewable energy consumption (REC) on the emissions of carbon dioxide (CO₂) emissions of the top ten countries in technological advancement (TTCTA) over the period 2004-2019. Other deterministic factors are included in the empirical study such as real gross domestic product (GDP), non-renewable energy consumption (NREC), and technological advancement (ATECH) to check their influence on environmental indicators. PMG-ARDL approach, cointegration techniques, and Granger causality tests are applied for the empirics part. In the long run, the outcomes show that real GDP, REC, and technological advancement contribute to decreasing CO₂ emissions, while NREC and FI contribute to increasing emissions levels. In the short run, only GDP and NREC significantly deteriorate the environmental quality. Granger shows a long-run bidirectional causality between CO₂ emissions, economic growth, REC, NREC, and ATECH.