Financial inclusion and environmental sustainability

Peterson Ozili

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyses the association between financial inclusion and environmental sustainability. The study uses Pearson correlation analysis to analyse the association between financial inclusion and environmental sustainability. The level of financial inclusion was measured using two supply-side financial inclusion indicators: the number of ATMs per 100,000 adults and the number of commercial bank branches per 100,000 adults. Environmental sustainability was measured using two indicators: the environmental policy stringency index and the environmentally adjusted multifactor productivity growth index. The study finds that financial inclusion is positively correlated with environmental sustainability particularly in non-EU countries. The result implies that financial inclusion programs and efforts in non-EU countries complement environmental sustainability efforts toward achieving the United Nations sustainable development goals (SDGs). The findings also reveal a significant and negative association between environmental policy stringency and environmentally adjusted multifactor productivity growth particularly in EU member-countries and European countries, implying that strict environmental protection policies may harm green growth in EU and European countries.

Keywords: Environment; sustainability; sustainable development; financial inclusion; access to finance; supply-side financial inclusion (search for similar items in EconPapers)
JEL-codes: G21 Q01 Q54 Q56 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-ene, nep-env, nep-fle, nep-mfd and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:116586

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