Abstract
Sustainable development and addressing climate change are among the most pressing issues faced by countries around the world. This research investigates the dynamic associations between financial inclusion, globalization and CO2 emissions of G20 nations from 2005 to 2018, considering the effects of industrial structure, corruption, green energy utilization and economic growth as control variables. In this study, both financial inclusion and globalization index were measured using principal component analysis (PCA). This study examines long-term associations using cross-sectional augmented autoregressive distributed lag (CS-ARDL) technique that offers more accurate outcomes. In addition, the VECM Granger causality method was applied to find causal relationships between study variables. Findings show that in financial inclusion, globalization has positive significant effect on carbon emissions. Moreover, corruption and economic have positive impact on carbon emissions, and renewable energy shows negative impact on environmental quality. The findings of this research are critical for achieving sustainable development and pollution control goals. Governments need to work to bring into line the financial inclusion goals with renewable energy consumption habits and environmental strategies.
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This research received funding from the Humanities and Social Sciences Foundation of the Chinese Ministry of Education under grant no. 12YJA630162 and Shanghai University Young Teacher Training Funding Program under grant no. AW12220200109.
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Yuan Tian: conceptualization, data curation, methodology, writing—original draft. Luxi Li: data curation, visualization, supervision, visualization, editing and software.
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Tian, Y., Li, L. Impact of financial inclusion and globalization on environmental quality: evidence from G20 economies. Environ Sci Pollut Res 29, 61265–61276 (2022). https://doi.org/10.1007/s11356-022-19618-9
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DOI: https://doi.org/10.1007/s11356-022-19618-9