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

By Nuobu Renzhi, Y. Baek. 2020

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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.

Subfields: Economics and Econometrics, Marketing

View Paper: https://www.semanticscholar.org/paper/c6414ae9c01fe3c04b66bda5b3696f133e51e2d0