Money talks, green walks: Does financial inclusion promote green sustainability in Africa?

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F25%3A10490446" target="_blank" >RIV/00216208:11230/25:10490446 - isvavai.cz</a>

Výsledek na webu

<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=yUijx.1Mcb" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=yUijx.1Mcb</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.gfj.2024.101070" target="_blank" >10.1016/j.gfj.2024.101070</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Money talks, green walks: Does financial inclusion promote green sustainability in Africa?

Popis výsledku v původním jazyce

This study explores the dynamic relationship between financial inclusion and green sustainabilityacross 38 African countries. We construct an environmental pollution index and a financial inclusion index covering the period 2000-2021 to account for the several dimensions within bothindicators and employ them in the System GMM approach. We also test for intra-regional heterogeneity in Africa. Our empirical results show that financial inclusion, while economicallybeneficial, poses a significant risk of environmental degradation and has a distinctive inverted Ushaped relationship. A direct link between increases in financial inclusion and pollution alters at aturning point, beyond which further financial inclusion increases enhance green sustainability.The same pattern is observed for aggregate output. The results hold even when we control for ascore of macro-level determinants. Our analysis highlights intra-regional heterogeneity, revealingdifferences in impact across income levels and regional groups within Sub-Saharan Africa. Theseresults remain robust for alternative proxies of green sustainability. We offer valuable insights forpolicymakers to promote sustainability through inclusive financial practices and policies in SubSaharan Africa.

Název v anglickém jazyce

Money talks, green walks: Does financial inclusion promote green sustainability in Africa?

Popis výsledku anglicky

This study explores the dynamic relationship between financial inclusion and green sustainabilityacross 38 African countries. We construct an environmental pollution index and a financial inclusion index covering the period 2000-2021 to account for the several dimensions within bothindicators and employ them in the System GMM approach. We also test for intra-regional heterogeneity in Africa. Our empirical results show that financial inclusion, while economicallybeneficial, poses a significant risk of environmental degradation and has a distinctive inverted Ushaped relationship. A direct link between increases in financial inclusion and pollution alters at aturning point, beyond which further financial inclusion increases enhance green sustainability.The same pattern is observed for aggregate output. The results hold even when we control for ascore of macro-level determinants. Our analysis highlights intra-regional heterogeneity, revealingdifferences in impact across income levels and regional groups within Sub-Saharan Africa. Theseresults remain robust for alternative proxies of green sustainability. We offer valuable insights forpolicymakers to promote sustainability through inclusive financial practices and policies in SubSaharan Africa.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50201 - Economic Theory

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2025

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Global Finance Journal

ISSN

1044-0283

e-ISSN

1873-5665

Svazek periodika

64

Číslo periodika v rámci svazku

March 2025

Stát vydavatele periodika

US - Spojené státy americké

Počet stran výsledku

27

Strana od-do

1-27

Kód UT WoS článku

001403569700001

EID výsledku v databázi Scopus

2-s2.0-85212859104