Synergies between Trade Openness, Financial Inclusions, and Climate Change Mitigation in China

Author(s)

Sarvinoz Mukhtorova , Bo Yu ,

Download Full PDF Pages: 14-24 | Views: 14 | Downloads: 5 | DOI: 10.5281/zenodo.14784962

Volume 14 - January 2025 (01)

Abstract

The objective of the study is to appraise the role of financial inclusions in green initiatives, technological advances, and renewable energy sources in CO2 emission-reduction. The study also examined the relationships between sustainable financing, sustainable technology advances, renewable energy, and CO2 reduction using sophisticated panel data estimation CUP-FM, CUP-BC, and DSU methods. NARDL's nonlinear framework, CADF and CIPS have been applied for error correction-based panel cointegration and second serration panel unit root tests the data set from 2005 to 2023 of eighteen countries. Sustainable finance methods support sustainable projects including energy-efficient technologies and increase the asymmetric coefficients. The results reveal that sustainable technological innovation boosts economic growth, and helps in CO2 emissions reduction. Renewal energy reduces CO2 footprints and improves financial inclusions in low-carbon economies. More research is being done on eco-friendly solutions and how they encourage awareness and sustainability. According to the study results, government investments in green energy technology and renewable energy production sources can effectively reduce CO2 emissions, thus contributing to a future that prioritizes these goals. 

Keywords

Financial inclusions, trade openness, renewal energy, NARDL, CUP-FM, DSUR, CUP-BC

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