Nonlinear and Nonparametric Causal Relationship Between Financial Inclusion, Energy Efciency, and Sustainable Environment in Developed Economies
A sustainable environment is as important as the economy’s growth, but, unfortunately, economic growth is environmentally unsustainable. Hence, there is a need to adopt efcient ways to help maintain a sustainable environment. The present research is designed to evaluate the association between fnan...
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| Main Authors: | , , , , |
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| Format: | Article |
| Language: | en |
| Published: |
Springer Nature
2024
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/48271/1/s13132-023-01198-9.pdf http://ir.unimas.my/id/eprint/48271/ https://link.springer.com/article/10.1007/s13132-023-01198-9 https://doi.org/10.1007/s13132-023-01198-9 |
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| Summary: | A sustainable environment is as important as the economy’s growth, but, unfortunately, economic growth is environmentally unsustainable. Hence, there is a need
to adopt efcient ways to help maintain a sustainable environment. The present research is designed to evaluate the association between fnancial inclusion, energy
efciency, and a sustainable environment in developed economies. The World Bank has regarded fnancial inclusion as a crucial element for attaining seven Sustainable
Development Goals. So, there is a need to examine the causal association between fnancial inclusion, energy efciency, and a sustainable environment. We employed the linear Granger causality test, Brock-Dechert-Scheinkman test for nonlinearity, and parameter stability testing. These techniques confrmed the presence of a nonlinear association and structural breaks between proposed variables. Later, the nonparametric causality in the quantiles technique has been employed for the analysis. The fndings reveal that fnancial inclusions play a crucial role in maintaining a sustainable environment, but it is necessary to adopt energy efciency policies to mitigate emissions. Furthermore, the recommendations for policymakers, government, and future scholars are discussed in the paper. |
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