Environmental sustainability amidst financial inclusion in five fragile economies: Evidence from lens of environmental Kuznets curve

Barut A., Kaya E., Bekun F. V., Cengiz S.

Energy, cilt.269, 2023 (SCI-Expanded) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 269
  • Basım Tarihi: 2023
  • Doi Numarası: 10.1016/j.energy.2023.126802
  • Dergi Adı: Energy
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, PASCAL, Aerospace Database, Applied Science & Technology Source, Aquatic Science & Fisheries Abstracts (ASFA), CAB Abstracts, Communication Abstracts, Computer & Applied Sciences, Environment Index, INSPEC, Metadex, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Anahtar Kelimeler: Carbon-reduction, Environmental sustainability, Environmental sustianability index, Fragile economies, Panel econometrics, SDGs
  • İstanbul Gelişim Üniversitesi Adresli: Evet

Özet

© 2023 Elsevier LtdEconomic growth comes with it environmental trade-off on environmental sustainability. This occurrence is evidence on a global scale as it stems from human anthropogenic activities driven by the consumption of energy sources from fossil-fuel origin. On this premise, the present study focuses on five fragile economies with huge energy and sustainability targets to explore the nexus between economic growth and the environment. The present study is distinct from previous studies in scope by the construct and inclusion of a financial inclusion index with the aid of Principal component analysis (PCA), human development to the economic growth-environment argument. To this end to reach evidence-based outcomes second generational panel analysis is employed. The Durbin-Hansen cointegration test traces the long-run equilibrium relationship between the study variables. Subsequently, an augmented mean group (AMG) estimator is employed to explore the relationship between the outlined variables. Furthermore, the present study finds support for the pollution haven hypothesis for the selected fragile economies. The plausible explanation is due to weak trade and environmental treaties in the examined countries. However, the renewable energy human development index help mitigates environmental degradation. Thus, the present study advocates the need for energy transition and investment into new technological innovation in research and development to attain sustainable development goals and environmental sustainability resonated in UNSDGs-11,12 and 13. Additionally, financial inclusion plays a vital role in the five fragile energy-environment mixes. The current study presents vital policy directives in the concluding section for individual countries and the entire bloc for more effective policy direction.