Does financial inclusion limit carbon dioxide emissions? Analyzing the role of globalization and renewable electricity output

Abstract On the role of financial inclusion in terms of promoting a sustainable environment, very limited number of studies are available in the existing literature. These studies do not directly address or link financial inclusion with carbon dioxide emissions. Therefore, this study aims to specifically investigate the effects of financial inclusion on carbon dioxide emissions along with the role of globalization and renewable electricity generation for the case of the emerging seven economies over the 2004–2016 period. This study uses panel quantile regression analysis for estimations, which takes into account the non‐normality issue of the data. The long‐run relationships among carbon dioxide emissions, financial inclusion, renewable electricity generation, globalization, and economic growth are confirmed by Kao and Johansen panel cointegration…