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Financial inclusion and carbon emissions in Asia: Implications for environmental sustainability.
- Source :
- Economic & Political Studies; Mar2024, Vol. 12 Issue 1, p88-104, 17p
- Publication Year :
- 2024
-
Abstract
- This study explores how carbon emissions are affected by financial inclusion. Using a balanced panel data set of 26 Asian countries, we compute a composite index, through the principal component analysis (PCA) technique, of financial inclusion based on a set of attributes related to financial inclusion. Our main analysis also delineates the subsamples of developed and developing Asian economies. The results reveal a long (short)-run positive (negative) impact of financial inclusion on carbon emissions across the Asian countries. This finding is also true for the developed country subsample, implying nonlinearity in short- and long-run relationships. For the developing countries, a more pronounced long-run positive impact compared to developed countries is found. Furthermore, the pairwise causality test results indicate the existence of bi-directional causality between financial inclusion and carbon emissions. These findings have important policy implications, especially in the context of the strategic integration of financial inclusion and climate change strategies. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 20954816
- Volume :
- 12
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Economic & Political Studies
- Publication Type :
- Academic Journal
- Accession number :
- 175302260
- Full Text :
- https://doi.org/10.1080/20954816.2023.2273003