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Impact of financial inclusion, economic growth, natural resource rents, and natural energy use on carbon emissions: the MMQR approach

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Abstract

The association among natural resources, financial inclusion, and ecological neutrality has witnessed a lively debate in recent decades. However, insufficient empirical evidence exists to establish a clear link between financial inclusion and CO2 emissions in top-emitting nations. To fill this gap, this study is focused on the world’s top-ten carbon emitter countries from 2004 to 2018 using the novel “Method of Moment Quantile-Regression”. The empirical results of this study show that capitalizing renewable energy contributes to enhancing environmental quality. Conversely, the outcomes show that financial inclusion is positively connected with ecological pollution. The results also indicated that natural resource rent negatively affects ecological quality. This study validates the “pollution haven theory” hypotheses in the nations examined, specifically emphasizing the element of financial inclusion. In this context, the outcomes imply that policy makers in these countries must design green financial policies that promote sustainable communities by supporting the investment in renewable green technologies.

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Notes

  1. “https://www.worldometers.info/co2-emissions/co2-emissions-by-country/”.

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  1. Business School, Finance Department, The University of Edinburgh, Earls Ct Rd, London, W8 6QH, UK

    Teining Shang

  2. Department of Accounting, Dhofar University, Salalah, Sultanate of Oman

    Ahmed Samour

  3. Faculty of Management Sciences, University of Central Punjab, Pakistan, Lahore, Pakistan

    Jawad Abbas

  4. Banking and Finance Department, Near East University, Nicosia, North Cyprus, Turkey

    Mumtaz Ali & Turgut Tursoy

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Shang, T., Samour, A., Abbas, J. et al. Impact of financial inclusion, economic growth, natural resource rents, and natural energy use on carbon emissions: the MMQR approach. Environ Dev Sustain (2024). https://doi.org/10.1007/s10668-024-04513-9

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