Financial Inclusion and Threshold Effects in Carbon Emissions

Nidhaleddine Ben Cheikh () and Christophe Rault ()
Additional contact information
Nidhaleddine Ben Cheikh: ESSCA School of Management
Christophe Rault: University of Orléans

No 1713, Working Papers from Economic Research Forum

Abstract: Although financial inclusion would induce greater pollutant emissions through economic activity, improved access to financial services may facilitate investment in clean technologies. This study investigates whether financial inclusion has influenced the dynamics of carbon dioxide (CO2) emissions over the last decade using a sample of 70 countries. We implement panel threshold techniques to explore possible regime shifts in environmental quality. Our results reveal that the influence of increased financial access on air pollution depends on the economic development stage. While financial inclusion can increase CO2 emissions in lower-income regimes, environmental quality appears to be enhanced, with more inclusiveness at later developmental stages. Less-developed countries require more robust environmental policies to align their financial inclusion initiatives with sustainable economic development.

Pages: 25
Date: 2024-08-20, Revised 2024-08-20
New Economics Papers: this item is included in nep-ene, nep-env, nep-fle and nep-pay
References: Add references at CitEc
Citations:

Published by The Economic Research Forum (ERF)

Downloads: (external link)
https://erf.org.eg/publications/financial-inclusio ... -carbon-emissions-2/ (application/pdf)
https://bit.ly/3TbKfaC (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:erg:wpaper:1713

Access Statistics for this paper

More papers in Working Papers from Economic Research Forum Contact information at EDIRC.
Bibliographic data for series maintained by Namees Nabeel ().