Impact of Financial Inclusion, Globalization, Renewable Energy, ICT, and Economic Growth on CO2 Emission in OBOR Countries

Abstract

This study examines the short-term and long-term effects of various important determinants such as financial inclusion (FI), information and communication technology (ICT), renewable energy (RE), globalization (GOB), and economic growth (EG) on CO2 emissions in the top 10 emitter countries in the OBOR region based on the collected data for the years 2004 to 2019. This study employed the CS-ARDL technique. Findings demonstrate a strong relationship between FI, ICT, and CO2 emissions in both the long-term and short-term. Renewable sources of energy have been found to have a CO2 emission reduction effect, both in the long and short term. In the long run, there is a negative connection between globalization and CO2 emissions; however, in the short run, this connection is inconsequential, while economic growth (EG) has a positive association with CO2 emission. The development of ICT infrastructure carries the potential to directly mitigate the detrimental effects of CO2 emissions while also playing an important role in raising people’s environmental consciousness. OBOR countries should welcome and encourage clean and green foreign investment that provides technical skills, environmental technology development, and carbon-free processes.