1 research outputs found
On the nexus between energy efficiency, financial inclusion and environment: Evidence from emerging seven economies using novel research methods
Emerging seven (E7) are some of the rising economies in the
world and are expected to be economically strengthened in the
coming few decades due to rapid economic growth. Besides,
financial inclusion and globalization are also rising in these economies, which compel them to adopt energy saving techniques to
lower carbon (CO2) emissions in the region. This study aims to
explore the influence of these variables on CO2 emissions in E7
economies over the period from 2004 to 2019. Various panel
econometric approaches reveal that all the variables are stationary
at first difference. Also, the long-run cointegration association
exists between them. The non-normal distribution of data leads
to the adoption of the panel quantile estimator for the long run
estimations across three quantiles (i.e., q0.25, q0.50, and q0.75). The
empirical findings illustrate that energy efficiency is negatively
associated to CO2 emissions in all the quantiles. However, financial inclusion, economic growth, globalization, and composite risk
index are the prominent factors of CO2 emissions. Such factors
are the primary reasons for environmental degradation in the
region. The estimated panel causality test results confirm the
feedback effect for the variables except for globalization, which
runs toward CO2 emissions. Based on findings, this study suggests
policies regarding the encouragement of energy efficiency and
alteration of economic growth from non-renewable energy sources to renewables. Devotion of financial inclusion towards green
finance and green bonds promotion and reducing composite risk
to promote environmental sustainability