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BUILT BYCerebrohives
BooksUNNECO 512

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FINANCIAL INCLUSION AND ENVIRONMENTAL SUSTAINABILITY NEXUS IN  ECOWAS: A NEW EMPIRICAL EVIDENCE

ECO 512: FINANCIAL INCLUSION AND ENVIRONMENTAL SUSTAINABILITY NEXUS IN ECOWAS: A NEW EMPIRICAL EVIDENCE

ByAnthony Orji
SchoolUniversity of Nigeria, Nsukka
DepartmentEconomics
CategoryAcademic JournalsResearch Papers
Levels200100300400500600Post Graduate
₦ 3000
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Description

United Nations Environmental Program (UNEP) pointed out that although Africa makes a small

contribution to climate change, it is yet the most vulnerable to its consequences. This vulnerability results

from the region's lack of finance to protect itself from the impact of climate change. Hence, this study

empirically revisits the debate on the impact of financial inclusion on environmental sustainability in

West Africa with emphasis on the 16 ECOWAS member nations. The variables of interest are Total

greenhouse gas emissions, commercial bank branches, Depositors with Commercial Banks, Non-

renewable energy consumption, Renewable energy consumption, and population. The Westerlund (2007)

co-integration test, Panel corrected standard errors (PCSE), and the Common Correlated Effects Mean

Group (CCEMG) were utilized to achieve the study's objective. The result reveals that commercial bank

branches have a positive and insignificant impact on Total greenhouse gas emissions.In contrast,

Depositors with Commercial Banks negatively and significantly impact Total greenhouse gas emissions.

Accordingly, the study concludes that financial inclusion positively impacts environmental sustainability

in West Africa. As a result, the study suggests that banks in the region switch to green energy across all of

their branches. Additionally, initiatives should be made to promote saving and loaning savings to companies and investors dedicated to environmentally friendly investments and reducing greenhouse gas 

emissions in the region