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Does financial inclusion and education limit CO2 emissions in China? A new perspective

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Abstract

China is the second-largest economy in the world after the USA and the largest contributor of CO2 emissions in the globe followed by the USA. In this study, we have included two factors that could affect the CO2 emissions in China i.e. financial inclusion and education. Five different proxies of financial inclusion have been estimated through the ARDL technique and four of them have confirmed the favorable impact of financial inclusion on the environmental quality in China. Similarly, the role of education proved to be beneficial in reducing CO2 emissions in China. Among the control variables, GDP and population also exerted a negative impact on CO2 emissions, whereas, the research and development activities encourage carbon emissions. Our findings suggest that financial inclusion and education can play an important role in the fight against global warming. Funds should be transferred to those firms, businesses, and individuals who are involved in eco-innovations. Government should try to educate people on the environment and the harmful effects of global warming. Knowledge helps to build up technology that is more energy-efficient; hence, innovation through knowledge should be promoted to fortify the positive impacts of education on the eco-system.

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Availability of data and materials

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

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Authors and Affiliations

  1. Graduate Institute for Taiwan Studies, Xiamen University, Xiamen, 361005, China

    Nan Liu

  2. College of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang, 550025, China

    Nan Liu & Cencen Hong

  3. Wang Yanan Institute for Studies in Economics, Xiamen University, Xiamen, China

    Cencen Hong

  4. School of Public Administration, Xiangtan University, Hunan, China

    Muhammad Tayyab Sohail

Authors
  1. Nan Liu
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  2. Cencen Hong
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  3. Muhammad Tayyab Sohail
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Contributions

This idea was given by Nan Liu. Nan Liu, Cencen Hong analyzed the data and wrote the complete paper. While Muhammad Tayyab Sohail read and approved the final version.

Corresponding authors

Correspondence to Cencen Hong or Muhammad Tayyab Sohail.

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The authors declare no competing interests.

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Liu, N., Hong, C. & Sohail, M.T. Does financial inclusion and education limit CO2 emissions in China? A new perspective. Environ Sci Pollut Res 29, 18452–18459 (2022). https://doi.org/10.1007/s11356-021-17032-1

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  • DOI: https://doi.org/10.1007/s11356-021-17032-1

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