Does Financial Inclusion Enhance Energy Efficiency?? Moderating Roles of Education and Foreign Direct Investment

Guixian Tian (), Muhammad Wasif Zafar (), Avik Sinha and Mehmet Akif Destek ()
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Guixian Tian: Ningbo University of Finance and Economics
Muhammad Wasif Zafar: National University of Computer and Emerging Sciences
Mehmet Akif Destek: Gaziantep University

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2025, vol. 180, issue 2, No 18, 1065 pages

Abstract: Abstract This research aims to investigate the effect of financial inclusion on energy efficiency in Global South. In order to accomplish this, two distinct financial inclusion indicators (Number of commercial bank branches per 100,000 adults and Number of ATMs per 100,000 adults) are utilized, and the effects of various inclusion indicators on energy efficiency are compared. In addition, variables such as inflation, foreign direct investments, and education, which are assumed to affect energy efficiency, are included as independent variables in the empirical model to avoid omitted variable bias; thus, both the direct effects and moderating effects of these variables are examined. According to the findings of the study, which analyzed the period from 2004 to 2020 using panel data methods of the second generation, an increase in financial inclusion indicators, education, and foreign direct investments increases energy efficiency, while an increase in inflation decreases energy efficiency. In addition, we discovered that the expansion of bank branches reduces inflation’s detrimental effect on energy efficiency and augments the positive effect of greater knowledge on energy efficiency.

Keywords: Financial inclusion; Energy efficiency; Global south; Education (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11205-025-03705-8

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