Financial Inclusion and Its Influence on Renewable Energy Consumption-Environmental Performance: The Role of ICTs in China
Abstract
Abstract Financial inclusion means that individuals and businesses can easily avail financial goods and services at an affordable cost. It is widely recognized that financial inclusion can help preserve the environment by increasing the consumption of renewable energy sources. Hence, our aim is to investigate whether financial inclusion has any effect on renewable energy consumption and environmental quality in China. To get the estimates of the variables, we have preferred the ARDL model. The estimates of the model confirm that a rise in the number of ATMs and total insurance has a positive impact on renewable energy consumption in China in long-run. Conversely, an increase in the number of ATMs and total insurance negatively affects CO2 emissions in China. In general, we can say that financial inclusion increases renewable energy consumption and reduces CO2 emissions in China. Therefore, by using financial inclusion, policymakers should try to divert the resources towards environmentally friendly consumption and production activities.