When would the dark clouds of financial inclusion be over, and the environment becomes clean? The role of national governance

Undoubtedly, financial inclusion (FIN) contributes to economic development by enabling individuals and businesses, particularly small and medium enterprises, to access financial services. Financial inclusion may also have environmental implications; however, limited studies have looked into the nexus between financial inclusion and environmental quality. Also, the possible impacts of technological innovation and green openness remain unexplored in this nexus. In this context, this article probes the relationship between financial inclusion, technological innovation, green openness, and CO2 emissions in BRICS countries while controlling for economic growth and energy consumption. Using the panel times series data from 2004 to 2018, this study uses advanced econometric techniques for empirical analysis robust to cross-sectional dependency and slope heterogeneity. The empirical results unveiled that FIN contributes to environmental degradation in BRICS countries. In contrast, technological innovation and green openness pose mitigating effects on emissions, thus promoting environmental sustainability. Environmental degradation is evidenced to enhance due to rising economic growth and energy utilization. Financial inclusion, technological innovation, and green openness Granger cause CO2 emissions, but not the other way around. Further, technological innovation, green openness, and financial inclusion Granger cause each other. Based on the empirical results, this study recommends that BRICS countries should promote technological innovation, green openness, and at the same time, integrate financial inclusion with environmental policies to achieve climate-related goals.

supporting

confidence: 85%

Section: Literature Reviewmentioning

confidence: 99%

Financial Inclusion, Technological Innovations, and Environmental Quality: Analyzing the Role of Green Openness

Ahmad

Ahmed

Bai

et al. 2022

“…Ethics in basic research were taken into account when defining the research goals and collecting data from agricultural communities, and the research goal was clearly explained to agricultural communities (Resnik et al, 2015). Furthermore, agricultural communities were made aware that the information they provided would only be used for research and that they were not obligated to provide any answers (Bell et al, 2005;Rasool et al, 2017;Mustafa et al, 2022;Rehman et al, 2022;Ullah et al, 2022;Atchike et al, 2022). This instrument contained a brief introduction to the study's purpose, followed by a demographic questionnaire to determine the participants' ages, occupations, and other relevant information.…”

Section: Methodology Study Area and Datamentioning

confidence: 99%

Agricultural Communities’ Risk Assessment and the Effects of Climate Change: A Pathway Toward Green Productivity and Sustainable Development

Sohail

Mustafa

Ali

et al. 2022

This study was carried out to assess agricultural communities’ understanding of climate change, the adaptation measures being undertaken against climate change, and industrial wastewater irrigation. It was considered important to check agricultural communities’ understanding of climate change, as the majority of the study area belongs to the farming and industry sector. This study was based on primary data collected through a survey in the study area. The results of present study showed that agricultural communities with sufficient resources and assets consider themselves to be safer and more capable of coping with the negative effects of climate change. Agricultural communities used different techniques to deal with the impacts of climate change in present study area. This study produced findings about agricultural households’ adaptation tactics that are unique and will aid policymakers in assisting agricultural communities in their day-to-day activities and farming practices, as well as in the implementation of proper monitoring and public policies to ensure integration and sustainability. This research is based on the sustainable livelihoods approach (SLA), which investigates how livelihood assets support agricultural communities by combining household adoption/adaptation strategies and livelihood outcomes.

“…Even though the quantile regression method is robust to outliers, however, it remains unsuccessful across the individual heterogeneity unobserved in a panel. For this reason, the method of moments quantile regression (MMQR) is applied in this study to identify the conditional heterogenous covariance influence of environmental quality (CO 2 emissions), which allows the individual effects to the entire distribution (Ike et al, 2020;Rehman et al, 2021;Rehman et al, 2022).…”

Section: Empirical Modelingmentioning

confidence: 99%

Investigating the Role of Education, Foreign Investment, and Economic Development for Sustainable Environment in BRI Countries: Application of Method of Movements Quantile Regression

Yan

Zhou

et al. 2022

Environmental pollution comes from several sectors of activities. It is almost conceivable that the education sector subsidies to the disruption of the environmental quality. The study employs panel cointegration techniques and method of moments quantile regression (MMQR) to inspect the influence of income, education (scholarly enrollment and expenditure), and foreign direct investment on carbon dioxide (CO2) emissions for a panel of 46 Belt and Road initiative (BRI) countries spanning the period 1996–2016. The estimation shows that the hypothesis of environmental Kuznets is established for both the models. Using fully modified ordinary least squares (OLS), fixed effects OLS and dynamic OLS, long-run elasticities show that real income increases the emissions. At the same time, foreign direct investment and education contribute toward decreasing the emissions in the long run. Using the approach of MMQR, the estimated coefficients confirm that only economic growth positively affects pollution. However, education and foreign direct investment negatively influence CO2 emissions with different quantile levels. As policy recommendations, governments of the BRI region should improve the educational services by installing new technologies, equipment, and supplies, which leads to mitigation of the emission levels.