Dynamic linkages of financial inclusion, modernization, and environmental sustainability in South Asia: a panel data analysis.
Climate change
Financial development
Innovations
Mitigation measure
Sustainable development
Journal
Environmental science and pollution research international
ISSN: 1614-7499
Titre abrégé: Environ Sci Pollut Res Int
Pays: Germany
ID NLM: 9441769
Informations de publication
Date de publication:
Mar 2022
Mar 2022
Historique:
received:
03
06
2021
accepted:
16
09
2021
pubmed:
16
10
2021
medline:
12
2
2022
entrez:
15
10
2021
Statut:
ppublish
Résumé
This study explores the dynamic linkages of financial inclusion, modernization, and environmental sustainability in South Asia during the period 1998-2019. Two distinct composite indexes for financial inclusion and modernization are developed by using principal component analysis (PCA) based on normalized indicators. To examine the dynamic linkages, we adopted panel regression models that are not only robust but also heteroskedasticity consistent. We find that financial inclusion, modernization, per capita GDP, and FDI appear to lead to higher CO2 emissions in the South Asian region. Meanwhile, increased economic integration and trade openness appear to have negative dynamics for carbon emissions. These empirical findings are unbiased and robust to different reasonable modifications to panel data model specifications. This study comes up with the conclusion that presently there is no policy coherence and coordination between growing financial inclusion, modernization, and carbon mitigation strategies in South Asia. Thus, the prospect of financial inclusion and modernization should be cohesive into comprehensive climate change mitigation strategies at regional, national, and global levels, specifically to mitigate the adverse dynamics of higher carbon emissions associated with modern development.
Identifiants
pubmed: 34651270
doi: 10.1007/s11356-021-16648-7
pii: 10.1007/s11356-021-16648-7
doi:
Substances chimiques
Carbon Dioxide
142M471B3J
Carbon
7440-44-0
Types de publication
Journal Article
Langues
eng
Sous-ensembles de citation
IM
Pagination
16588-16596Informations de copyright
© 2021. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.
Références
Abbasi F, Riaz K (2016) CO2 emissions and financial development in an emerging economy: an augmented VAR approach. Energy Policy 90:102–114
doi: 10.1016/j.enpol.2015.12.017
Acaravci A, Ozturk I (2010) On the relationship between energy consumption, CO2 emissions and economic growth in Europe. Energy 35:5412–5420
doi: 10.1016/j.energy.2010.07.009
Adamu TM, Haq I, Shafiq M (2019) Analyzing the impact of energy, export variety, and FDI on environmental degradation in the context of environmental Kuznets curve hypothesis: a case study of India. Energies 12(6):1076
doi: 10.3390/en12061076
Al-Saidi M, Elagib NA (2018) Ecological modernization and responses for a low-carbon future in the Gulf Cooperation Council countries. Wiley Interdiscip Rev Clim Chang 9(4):e528
doi: 10.1002/wcc.528
Apergis N, Tang CF (2013) Is the energy-led growth hypothesis valid? New evidence from a sample of 85 countries. Energy Econ 38:24–31
doi: 10.1016/j.eneco.2013.02.007
Arellano M, Bond SR (1991) Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Rev Econ Stud 58:277–297
doi: 10.2307/2297968
Awodumi OB, Adewuyi AO (2020) The role of non-renewable energy consumption in economic growth and carbon emission: evidence from oil producing economies in Africa. Energy Strateg Rev 27:100434
doi: 10.1016/j.esr.2019.100434
Begum RA, Sohag K, Abdullah SMS, Jaafar M (2015) CO2 emissions, energy consumption, economic and population growth in Malaysia. Renew Sust Energ Rev 41:594–601
doi: 10.1016/j.rser.2014.07.205
Cheng Y, Awan U, Ahmad S, Tan Z (2021) How do technological innovation and fiscal decentralization affect the environment? A story of the fourth industrial revolution and sustainable growth. Technological Forecasting and Social Change 162:120398
Chibba M (2009) Financial inclusion, poverty reduction and the millennium development goals. Eur J Dev Res 21(2):213–230
doi: 10.1057/ejdr.2008.17
Dietz T, Rosa EA, (1997). Environmental impacts of population and consumption. Environ Sig Cons. 92–99.
Dogan E, Turkekul B (2016) CO2 emissions, real output, energy consumption, trade, urbanization and financial development: testing the EKC hypothesis for the USA. Environ Sci Pollut Res 23:1203–1213
doi: 10.1007/s11356-015-5323-8
Ehigiamusoe KU, Lean HH (2019) Effects of energy consumption, economic growth, and financial development on carbon emissions: evidence from heterogeneous income groups. Environ SciPollut Res 26:22611–22624. https://doi.org/10.1007/s11356-019-05309-5
doi: 10.1007/s11356-019-05309-5
Ehigiamusoe KU, Lean HH, Smyth R (2020) The moderating role of energy consumption in the carbon emissions-income nexus in middle-income countries. Appl Energy 261:114215
doi: 10.1016/j.apenergy.2019.114215
Gormus S, Aydin M (2020) Revisiting the environmental Kuznets curve hypothesis using innovation: new evidence from the top 10 innovative economies. Environ SciPollut Res In. https://www.ipcc.ch/report/ar5/wg3/ .
Iddrisu I, Bhattacharyya SC (2015) Sustainable energy development index: a multi-dimensional indicator for measuring sustainable energy development. Renew Sust Energ Rev 50:513–530
doi: 10.1016/j.rser.2015.05.032
Jinxia D (2010) The Beijing games, national identity and modernization in China. Int J Hist Sport 27:2798–2820
doi: 10.1080/09523367.2010.508275
Lee JY (2020) Investing in carbon emissions reduction in the EOQ model. Journal of the Operational Research Society 71(8):1289–1300
Le T-H, Le H-C, Taghizadeh-Hesary F (2020) Does financial inclusion impact CO2 emissions? Evidence from Asia. Financ Res Lett 34:101451
doi: 10.1016/j.frl.2020.101451
Le TH, Chuc AT, Taghizadeh-Hesary F (2019) Financial inclusion and its impact on financial efficiency and sustainability: Empirical evidence from Asia. Borsa Istanbul Review 19(4):310–322
Li K, Lin B (2015) Impacts of urbanization and industrialization on energy consumption/CO2 emissions: does the level of development matter? Renew Sust Energ Rev 52:1107–1122
doi: 10.1016/j.rser.2015.07.185
Li S, Zhou C, Wang S, Hu J (2018) Dose urban landscape pattern affect CO2 emission efficiency? Empirical evidence from megacities in China. J Clean Prod 203:164–178
doi: 10.1016/j.jclepro.2018.08.194
Li S, Zhou C, Wang S (2019a) Does modernization affect carbon dioxide emissions? A panel data analysis. Sci Total Environ 663:426–435
doi: 10.1016/j.scitotenv.2019.01.373
Li S, Zhou C, Wang S, Gao S, Liu Z (2019b) Spatial heterogeneity in the determinants of urban form: an analysis of Chinese cities with a GWR approach. Sustainability 11:479
doi: 10.3390/su11020479
Liu X, Bae J (2018) Urbanization and industrialization impact of CO2 emissions in China. J Clean Prod 172:178–186
doi: 10.1016/j.jclepro.2017.10.156
Liu Y, Hao Y (2018) The dynamic links between CO2 emissions, energy consumption and economic development in the countries along “the Belt and Road”. Sci Total Environ 645:674–683
doi: 10.1016/j.scitotenv.2018.07.062
Lorente DB, Álvarez-Herránz A (2016) Economic growth and energy regulation in the environmental Kuznets curve. Environ Sci Pollut Res 23:16478–16494
doi: 10.1007/s11356-016-6773-3
Maji IK, Habibullah MS, Saari MY (2017) Financial development and sectoral CO2 emissions in Malaysia. Environ SciPollut Res 24:7160–7176. https://doi.org/10.1007/s11356-016-8326-1
doi: 10.1007/s11356-016-8326-1
MAJI IK, HABIBULLAH MS, Yusof-Saari M (2016) Emissions From Agricultural Sector and Financial Development in Nigeria: An Empirical Study. International Journal of Economics & Management, 10(1)
Mardani A, Streimikiene D, Nilashi M et al (2018) Energy consumption, economic growth, and CO2 emissions in G20 countries: application of adaptive neuro-fuzzy inference system. Energies 11(10):2771. https://doi.org/10.3390/en1110.2771
doi: 10.3390/en1110.2771
Mardani A, Streimikiene D, Cavallaro F, Loganathan N, Khoshnoudi M (2019) Carbon dioxide (CO2) emissions and economic growth: a systematic review of two decades of research from 1995 to 2017. Sci Total Environ 649:31–49
doi: 10.1016/j.scitotenv.2018.08.229
Odhiambo NM, (2020). “Financial development, income inequality and carbon emissions in sub-Saharan African countries: a panel data analysis”, Energy Exploration & Exploitation; Forthcoming
Özokcu S, Özdemir Ö (2017) Economic growth, energy, and environmental Kuznets curve. Renew Sust Energ Rev 72:639–647. https://doi.org/10.1016/j.rser.2017.01.059
doi: 10.1016/j.rser.2017.01.059
Pan C, Xi T, Zheng X, Shan H (2017) Iterative Innovation Design Methods for Internet Products in the Era of Big Data. DEStech Transactions on Computer Science and Engineering, (csae)
Paramati SR, Mo D, Huang R (2020) The role of financial deepening and green technology on carbon emissions: evidence from major OECD economies. Financ Res Lett 41:101794
doi: 10.1016/j.frl.2020.101794
Pui K, Othman J (2019) The influence of economic, technical, and social aspects on energy-associated CO2 emissions in Malaysia: an extended Kaya identity approach. Energy 181:468–493
doi: 10.1016/j.energy.2019.05.168
Renzhi N, Baek YJ (2020) Can financial inclusion be an effective mitigation measure? Evidence from panel data analysis of the environmental Kuznets curve. Financ Res Lett 37:101725. https://doi.org/10.1016/j.frl.2020.101725
doi: 10.1016/j.frl.2020.101725
Rosker JS (2014) China’s modernization: from daring reforms to a modern Confucian revival of traditional values. Anthropol Notebooks 20:89–102
Salehnia N, Alavijeh NK, Salehnia N (2020) Testing porter and pollution haven hypothesis via economic variables and CO2 emissions: a cross-country review with panel quantile regression method. Environ Sci Pollut Res Int 27(25):31527–31542
doi: 10.1007/s11356-020-09302-1
Saqib M, Benhmad F (2021) Updated meta-analysis of environmental Kuznets curve: where do we stand? Environ Impact Assess Rev 86:106503. https://doi.org/10.1016/j.eiar.2020.106503
doi: 10.1016/j.eiar.2020.106503
Saud S, Chen S, Haseeb A, Khan K, Imran M (2019) The nexus between financial development, income level, and environment in Central and Eastern European countries: a perspective on belt and road initiative. Environ Sci Pollut Res Int 26(16):16053–16075
doi: 10.1007/s11356-019-05004-5
Schandl H, Hatfield-Dodds S, Wiedmann T, Geschke A, Cai Y, West J, Newth D, Baynes T, Lenzen M, Owen A (2016) Decoupling global environmental pressure and economic growth: scenarios for energy use, materials use and carbon emissions. J Clean Prod 132:45–56
doi: 10.1016/j.jclepro.2015.06.100
Shahbaz M, Tiwari AK, Nasir M (2013) The effects of financial development, economic growth, coal consumption and trade openness on CO2 emissions in South Africa. Energy Policy 61:1452–1459
doi: 10.1016/j.enpol.2013.07.006
Sun H, Mohsin M, Alharthi M, Abbas Q (2019) Measuring environmental sustainability performance of South Asia. J Clean Prod 119519:119519. https://doi.org/10.1016/j.jclepro.2019.119519
doi: 10.1016/j.jclepro.2019.119519
World Bank, (2018). Financial inclusion. Retrieved on November 26, 2019. Available at: https://www.worldbank.org/en/topic/financialinclusion/overview#1 .
World Bank (2020) World development indicators 2019. DataBank, World Bank. https://databank.worldbank.org/data/home.aspx . Accessed 23 February 2020
Yahaya MH, Ahmad K (2018) Financial Inclusion through efficient zakat distribution for poverty alleviation in Malaysia: Using fintech & mobile banking. In Proceeding of the 5th International Conference on Management and Muamalah pp. 15–31
Zhang W, Xu H (2017) Effects of land urbanization and land finance on carbon emissions: a panel data analysis for Chinese provinces. Land Use Policy 63:493–500. https://doi.org/10.1016/j.landusepol.2017.02.006
doi: 10.1016/j.landusepol.2017.02.006
Zhang D, Zhang Z, Managi S (2019) A bibliometric analysis on green finance: current status, development, and future directions. Financ Res Lett 29:425–430
doi: 10.1016/j.frl.2019.02.003