Financial Inclusion, Technology Innovation and CO2 Emissions: International Evidence

This research examines the elaborate association between FI, CO2 emissions, and the moderating role of technological innovation across 83 countries. The study, which includes the years 2003 to 2022, uses data from the WDI to investigate the dynamics and consequences of these interrelated factors. The major goal is to determine the influence of FI on CO2 emissions, taking into consideration the moderating role of technical progress. Through principal component analysis, the study seeks to understand the underlying mechanisms driving these associations by employing various statistical approaches such as correlation analysis and Driscoll-Kraay standard errors. Initial data show a significant link between FI and CO2 emissions, but the degree of the association varies by nation. Furthermore, technological innovation has been shown to have a significant moderating effect, increasing the effect of FI on CO2 emissions. Based on these findings, the research suggests policies that make use of the associations between FI and technological innovation in order to promote sustainable development. Overall, this study advances our consideration of the complex relationship between FI, CO2 emissions, and technological innovation, providing significant insights for policymakers and stakeholders working for environmental sustainability and economic inclusiveness.