Technological advancement and inclusive finance: Dual influences on environmental quality in OECD countries

Yunpeng Sun, Miao Wang, Usman Mehmood, Yujing Wang and Jiali Dan

Finance Research Letters, 2025, vol. 72, issue C

Abstract: Employing the Method of Moments Quantile Regression alongside fixed effects (FE) for robustness and incorporating an interaction term between technological advancement (TA) and financial inclusion (FIN), the results reveal that while TA enhances environmental quality, the FIN∗TA weakens this positive effect across quantiles. GDP and TO consistently show negative impacts on LCF. EP, however, emerges as a significant positive factor, particularly in more advanced economies. Incorporating the log(FIN2) demonstrates that financial inclusion's environmental benefits intensify in higher quantiles. Findings emphasize the importance of sustainable technological innovation, strategically integrating financial inclusion, regulating trade and economic activities, and enhancing energy productivity to achieve environmental sustainability.

Keywords: Inclusive finance; COP28; Technological advancements; MMQR; OECD nations (search for similar items in EconPapers)
JEL-codes: F18 G00 O00 O44 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:72:y:2025:i:c:s1544612324015253

DOI: 10.1016/j.frl.2024.106496

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