Can financial inclusion be an effective mitigation measure? evidence from panel data analysis of the environmental Kuznets curve

Nuobu Renzhi and Yong Jun Baek

Finance Research Letters, 2020, vol. 37, issue C

Abstract: This study demonstrates the existence of financial inclusion-based environment Kuznets curve (EKC) by analyzing a panel of 103 countries during 2004–2014. The relationship between financial inclusion and CO2 emissions is found to be an inverted U-shape. This finding is robust to different measurements of the financial inclusion index constructed by principal composite analysis and modifications of the estimation model. The existence of a financial inclusion-based EKC provides an important policy insight that financial inclusion can be used as a mitigation measure. Therefore, policy makers should consider the synergy effect of financial inclusion in designing development and climate change policies.

Keywords: Financial inclusion; Environmental Kuznets curve; Mitigation measure; Climate change policy; Global panel data (search for similar items in EconPapers)
JEL-codes: O44 Q54 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (51)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:37:y:2020:i:c:s1544612319314849

DOI: 10.1016/j.frl.2020.101725

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