Impact of financial inclusion, economic growth, natural resource rents, and natural energy use on carbon emissions: the MMQR approach

The association among natural resources, financial inclusion, and ecological neutrality has witnessed a lively debate in recent decades. However, insufficient empirical evidence exists to establish a clear link between financial inclusion and CO2 emissions in top-emitting nations. To fill this gap, this study is focused on the world’s top-ten carbon emitter countries from 2004 to 2018 using the novel “Method of Moment Quantile-Regression”. The empirical results of this study show that capitalizing renewable energy contributes to enhancing environmental quality. Conversely, the outcomes show that financial inclusion is positively connected with ecological pollution. The results also indicated that natural resource rent negatively affects ecological quality. This study validates the “pollution haven theory” hypotheses in the nations examined, specifically emphasizing the element of financial inclusion. In this context, the outcomes imply that policy makers in these countries must design green financial policies that promote sustainable communities by supporting the investment in renewable green technologies.