The Effects of Financial Inclusion and Institutional Quality on the Environmental Sustainability: Evidence from Top 30 High Greenhouse Gas Emitter Countries
DOI:
https://doi.org/10.62843/jssr.v5i3.582Keywords:
Financial Inclusion, Institutional Quality, Environmental Sustainability, Greenhouse, EmissionAbstract
The study investigates the effects of financial inclusion (FIN) and institutional quality (INQ) on the environmental sustainability (ES) in the highest 30 greenhouse gas (GHG) emitter countries from 2004 to 2021. The study created composite indexes from the facets of the FIN and INQ, using principal component analysis (PCA). In the preliminary analysis the study conducted cross-sectional dependency (CSD), slope homogeneity, structural breaks and unit root test for ultimate review of the dataset. The study adopted 3rd generation cross-sectional autoregressive distributed lag model (CS-ARDL) to estimate long and short run relationships. The empirical findings of the study reveal that the FIN is significantly reducing environmental pressures. However, the INQ increases environmental dilapidation. Further, the findings of the interactive nexus of FIN and INQ on the ES is not momentous. Finally, the study recommends valuable policy suggestions for the policymakers of the developing and developed world for endorsing their ES.
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