Does sustainable financial inclusion and energy efficiency ensure green environment? Evidence from B.R.I.C.S. countries. Issue 1 (31st December 2022)

• Record Type: Journal Article
• Authors: Dou, Dandan; Li, Liying
• Is Part Of: Ekonomska istraživanja. Volume 35:Issue 1(2022)
• Page Start: 5599
• Page End: 5614
• Publication Date: 2022-12-31
• Subjects: sustainable financial inclusion (F.I.) -- energy efficiency -- low emissions -- B.R.I.C.S; F3 -- F6 -- P5; Economics -- Research -- Periodicals; Economics -- Research; Electronic journals; 330.072
• DOI: 10.1080/1331677X.2022.2032785
• Languages: English
• ISSNs: 1331-677X

Abstract

Abstract: Continuous rise in a global economy with a 3–4% annual growth rate poses a severe risk to environmental sustainability due to high energy demand. Since the Paris climate accord, countries worldwide have implemented numerous strategies to attain the target of carbon neutrality. With the rising environmental challenges, it is important to consider global financial inclusion (F.I.) policies. This study uses panel data for the B.R.I.C.S. countries to investigate the impact of F.I. and energy efficiency in limiting trade adjusted emissions (T.A.E.) taking technological innovation and trade as control variables. This study uses panel data consisting small sample size and large time period; therefore, keeping in mind the potential econometric problems, this study uses AMG method, which can efficiently deal with endogeneity problems and small sample bias. We find a positive impact of F.I. and energy efficiency on CO2 emissions. Moreover, we find that technological innovation, exports and output amplify CO2 emissions.