Do Financialization and Innovation Enhance Environmental Sustainability in Sub‐Saharan Africa?
Аннотация
ABSTRACT This study addresses the perception of Sub‐Saharan Africa (SSA) as a region with limited financial capabilities and technological advancement to enhance environmental sustainability. Conducted across 24 SSA countries from 2000 to 2021, the research employs instrumental IV and panel quantile regressions. It shows that financialization, when coupled with innovation‐driven activities, positively impacts environmental sustainability. The findings reveal refined relationships, indicating that the impact of financialization on environmental sustainability varies based on contextual factors. Notably, positive effects are observed, particularly in terms of enhancing access to credit and promoting innovation initiatives. The study underscores the importance of addressing emissions and promoting environmental sustainability in SSA through strengthened financial systems and innovation promotion. By highlighting the potential for decoupling economic growth from environmental degradation, the research provides valuable insights for policymaking and sustainable development efforts in the region.