Introduction. Financial literacy has been recognized worldwide as a significant element of stability and economic and financial growth. With the evolution of financial instruments, the growing importance of financial inclusion, its correlation with financial literacy, and the effects they have on sustainability, the concept of financial literacy is dramatically changing and getting more inclusive, spreading the focus on sustainability, sustainable consumption, and environmental preservation. Aim and tasks. The aim of the study is to examine the connection between the population's financial literacy level and greenhouse gas emissions. The working hypothesis claims that there is a relationship between financial literacy and the carbon footprint. Results. The correlation and regression analyses were the main tools in the study, while the dataset for 2014 covered 137 countries, with the main dependent variables being carbon emissions per capita, per unit of gross domestic product, and per unit of energy. The partial correlation coefficients between financial literacy rating and carbon footprint variables were insignificant when controlled for economic development, represented by per capita gross domestic product. Estimated econometric models with financial literacy in quadratic form were adequate and showed a significant connection between financial literacy and carbon emissions per capita and per gross domestic product at the 5% level. The relationship with carbon emissions per unit of energy was significant at the 10% level. In all three models, the relationships followed an inverse U-shape, with low financial literacy increasing the carbon footprint and higher financial literacy decreasing it. The turning numbers for financial literacy were 35.8% for carbon emissions per capita, 41.4% for emissions per unit of gross domestic product, and 32.4% for emissions per unit of energy. Conclusions. Financial literacy was indeed associated with carbon emissions in a complex, non-linear way. The effect of energy consumption on carbon emissions was stronger than financial literacy and appeared to be the driving force for the increase in carbon emissions. With low financial literacy observed in underdeveloped countries, the situation was not favorable for the environment. As financial literacy increased, welfare, income, and consumption increased too, leading to an increase in greenhouse gas emissions, i.e., a bigger CO2 footprint. Once a certain stage of economic development was reached, the relationship was reversed, i.e., in developed countries, financial literacy worked towards reducing the carbon footprint and protecting the environment.
Domestic trade is an essential contributor to economic growth and an indicator of the people’s welfare. It is vulnerable to the COVID-19 crisis due to the pandemic itself and the government’s measures against it. An accurate estimation of the pandemic influence on domestic trade is needed for effective economic intervention in support of the economic recovery and improvement of the well-being of the population. The aim of this paper is to estimate the magnitude and timing of the COVID-19 impact on domestic trade in Bulgaria. The data used in the study covered the period 2000–2020 with monthly data for the indicator “Turnover for wholesale and retail trade and repair of motor vehicles and motorcycles in Bulgaria.” This paper employed unit root tests, autocorrelation function analysis, building, estimating, forecasting ARIMA and ARCH models, and intervention analysis. The results revealed that Bulgarian domestic trade followed the difference-stationary process as unit root tests failed to reject the random walk hypothesis. The COVID-19 impact on domestic trade proved to be long-lasting and has permanently decreased its level since March 2020. The timing of the impact coincided with the government’s measures against the pandemic. The drop in the volume of domestic trade was substantial and estimated at 19.3%. Following the nature of domestic trade, determined and decisive intervention is necessary if the Bulgarian government seeks to expand domestic demand and successfully procure economic recovery.
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