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Technological advancement and inclusive finance: Dual influences on environmental quality in OECD countries

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Listed:
  • Sun, Yunpeng
  • Wang, Miao
  • Mehmood, Usman
  • Wang, Yujing
  • Dan, Jiali

Abstract

Employing the Method of Moments Quantile Regression alongside fixed effects (FE) for robustness and incorporating an interaction term between technological advancement (TA) and financial inclusion (FIN), the results reveal that while TA enhances environmental quality, the FIN∗TA weakens this positive effect across quantiles. GDP and TO consistently show negative impacts on LCF. EP, however, emerges as a significant positive factor, particularly in more advanced economies. Incorporating the log(FIN2) demonstrates that financial inclusion's environmental benefits intensify in higher quantiles. Findings emphasize the importance of sustainable technological innovation, strategically integrating financial inclusion, regulating trade and economic activities, and enhancing energy productivity to achieve environmental sustainability.

Suggested Citation

  • Sun, Yunpeng & Wang, Miao & Mehmood, Usman & Wang, Yujing & Dan, Jiali, 2025. "Technological advancement and inclusive finance: Dual influences on environmental quality in OECD countries," Finance Research Letters, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:finlet:v:72:y:2025:i:c:s1544612324015253
    DOI: 10.1016/j.frl.2024.106496
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    References listed on IDEAS

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    More about this item

    Keywords

    Inclusive finance; COP28; Technological advancements; MMQR; OECD nations;
    All these keywords.

    JEL classification:

    • O00 - Economic Development, Innovation, Technological Change, and Growth - - General - - - General
    • G00 - Financial Economics - - General - - - General
    • F18 - International Economics - - Trade - - - Trade and Environment
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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