The Role of Education in Shaping Sustainable Finance and Environment Relationships in MENA Countries

Education can play a vital role in moderating the Financial Development (FD), Energy Consumption (EC), and the environment nexus as per the Sustainable Development Goals 7 and 13. Thus, the aim of this research is to explore such linkages in the framework of the Environmental Kuznets Curve (EKC) in 15 MENA economies for the period 1999-2022. For this purpose, Cross-Sectional Dependence (CD) econometric techniques are applied. The CD is validated in the individual series and in the hypothesized models as well. The cointegration is also validated in the models. Moreover, the EKC is supported in the MENA region in the regression results. In the long and short run, FD and education reduce carbon emissions, and EC raises them. Moreover, education moderates the connection between FD and emissions. Thus, education helps to enhance the environmental benefits of FD. However, education could not moderate the impact of EC on emissions. These results suggest enhancing financial and environmental literacy to support a sustainable environment in the MENA region.