Assessing the Influence of Financial Inclusion on Environmental Degradation in the ASEAN Region through the Panel PMG-ARDL Approach
Abstract
:1. Introduction
2. Literature Review
3. Materials and Methods
4. Results and Discussions
5. Conclusions and Policy Implications
6. Limitations and Prospects of the Study
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Abbreviations | Variables | Unit | Data Source |
---|---|---|---|
CO2 | Carbon emissions | Metric tons per capita | World Bank (2021) |
FI | This index is comprised of the following components: Automated teller machine (ATM)
| Index per 100,000 adults per 100,000 adults GDP (%) Volume to GDP (%) | World Bank (2021) World Bank (2021) World Bank (2021) World Bank (2021) |
GDP | Gross Domestic Product | (Million measured at constant 2015 US$) | World Bank (2021) |
EU | Energy use | (kg of oil equivalent per capita) | World Bank (2021) |
URB | Urbanization | In thousands | United Nations (2021) |
Countries | Variables | Mean | Median | Std. Dev. |
---|---|---|---|---|
Brunei | CO2 | 16.14 | 16.64 | 2.272 |
FI | 3.57 | 3.66 | 0.407 | |
EU | 8067.52 | 8511.59 | 1155.81 | |
GDP | 12,763.94 | 12,838.67 | 565.59 | |
URB | 290.05 | 288.05 | 31.99 | |
Cambodia | CO2 | 0.36 | 0.33 | 0.19 |
FI | 0.83 | 0.64 | 0.71 | |
EU | 136.71 | 131.22 | 27.44 | |
GDP | 13,345.4 | 12,391.3 | 5427.6 | |
URB | 2958.65 | 2856.84 | 522.54 | |
Indonesia | CO2 | 1.73 | 1.68 | 0.25 |
FI | 1.84 | 1.34 | 0.79 | |
EU | 106.15 | 104.7 | 14.12 | |
GDP | 670,318 | 638,563.5 | 208,498.2 | |
URB | 119,393 | 119,325 | 19,527.2 | |
Malaysia | CO2 | 6.8 | 7.04 | 0.79 |
FI | 3.8 | 3.72 | 0.23 | |
EU | 131.84 | 133.3 | 6.14 | |
GDP | 239,190.8 | 226,277.7 | 68,136.07 | |
URB | 19,648.2 | 19,639.1 | 3315.5 | |
Myanmar | CO2 | 0.28 | 0.22 | 0.15 |
FI | 0.31 | 0.18 | 0.33 | |
EU | 128.77 | 95.98 | 53.81 | |
GDP | 41,426.89 | 40,598.24 | 19,772.39 | |
URB | 14,488.5 | 14,389.4 | 1293.45 | |
Philippines | CO2 | 0.98 | 0.9 | 0.17 |
FI | 1.75 | 1.55 | 0.32 | |
EU | 81.29 | 73.17 | 14.91 | |
GDP | 240,040.9 | 220,810.8 | 78,340.55 | |
URB | 42,834.5 | 42,134.2 | 4584.4 | |
Singapore | CO2 | 8.69 | 8.39 | 0.77 |
FI | 4.57 | 4.52 | 0.23 | |
EU | 71.73 | 63.5 | 17.31 | |
GDP | 238,928.3 | 231,408.5 | 72,621.77 | |
URB | 4959.6 | 5020 | 620.98 | |
Thailand | CO2 | 3.4 | 3.45 | 0.38 |
FI | 4.14 | 4.05 | 1.1 | |
EU | 171.21 | 121.05 | 223.96 | |
GDP | 339,837.2 | 335,966.6 | 73,101.38 | |
URB | 28,212 | 28,964 | 4908.09 | |
Vietnam | CO2 | 1.56 | 1.57 | 0.65 |
FI | 0.74 | 0.69 | 0.28 | |
EU | 123.62 | 123.49 | 3.99 | |
GDP | 148,062.4 | 140,618.1 | 52,959.23 | |
URB | 26,956 | 26,486 | 5036.67 |
Variable | ATMs | Bank Branches | Bank Deposits | Life Insurance Premium |
---|---|---|---|---|
Correlation Matrix | ||||
AT | 1 | |||
BB | 0.69 | 1 | ||
BD | 0.68 | 0.46 | 1 | |
LIP | 0.55 | 0.19 | 0.76 | 1 |
Component Analysis | ||||
Component | Eigenvalue | % Variance | Cumulative proportion % | First principal Component |
1 | 2.68 | 0.67 | 0.67 | (0.55) AT |
2 | 0.90 | 0.22 | 0.89 | (0.43) BB |
3 | 0.24 | 0.06 | 0.95 | (0.55) BD |
4 | 0.18 | 0.05 | 1 | (0.47) LIP |
Series | Breitung and Das Test | CIPS Test | CADF Test | |||
---|---|---|---|---|---|---|
Level | First Diff | Level | First Diff | Level | First Diff | |
Intercept | ||||||
CO2 | −2.42 | −3.23 ** | −1.09 | −2.75 ** | −1.76 | −2.07 ** |
FI | −1.86 | 3.33 ** | −2.06 | 3.11 ** | −1.70 | −2.83 ** |
EU | −2.08 | −2.79 ** | −1.71 | −2.92 ** | −2.21 | −2.95 ** |
GDP | −2.08 | −2.79 ** | −2.14 | −3.10 ** | −2.41 | −3.21 ** |
URB | −2.26 | −2.97 ** | −2.27 | −3.71 ** | −2.91 | −4.17 ** |
Intercept and trend | ||||||
CO2 | −1.18 | −4.15 ** | −2.13 | 3.48 ** | −0.93 | −2.45 ** |
FI | −1.94 | 2.84 ** | −2.92 | 4.03 ** | −2.23 | 3.37 ** |
EU | −2.23 | −3.37 ** | −2.37 | 3.68 ** | −1.86 | −3.29 ** |
GDP | −1.03 | −2.93 ** | −1.86 | −3.85 ** | −2.05 | −3.41 ** |
URB | −1.49 | −3.52 ** | −1.10 | −2.69 ** | −2.36 | −3.94 ** |
Statistics | Values | Z-Values | Prob. |
---|---|---|---|
Gt | −3.21 * | −5.97 | <0.01 |
Ga | −15.51 * | −8.49 | <0.01 |
Pt | −9.21 * | −5.12 | <0.01 |
Pa | −12.34 * | −10.01 | <0.01 |
Diagnostic Tests | Test Statistics | p-Values |
---|---|---|
Hausman test | 1.41 | 0.12 |
Normality test | 0.89 | 0.71 |
Ramsey RESET test | 1.52 | 0.63 |
Variables | Parameters | t-Values | Std. Error | Prob. |
---|---|---|---|---|
LFI | 0.42 | 6.12 * | 0.07 | <0.01 |
LEU | 0.67 | 7.75 * | 0.08 | <0.01 |
LGDP | 1.08 | 9.01 * | 0.11 | <0.01 |
LURB | 1.36 | 5.69 * | 0.24 | <0.01 |
∆LFI | 0.01 | 0.15 ** | 0.07 | <0.05 |
∆LEU | 0.28 | 1.04 | 0.26 | 0.29 |
∆LGDP | 0.75 | 1.60 ** | 0.47 | <0.05 |
∆LURB | 5.008 | 1.81 ** | 0.75 | <0.05 |
Constant | −2.26 | −2.73 ** | 0.82 | <0.05 |
ECT | −0.33 | −2.85 * | 0.11 | <0.01 |
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Ahmad, S.; Khan, D.; Magda, R. Assessing the Influence of Financial Inclusion on Environmental Degradation in the ASEAN Region through the Panel PMG-ARDL Approach. Sustainability 2022, 14, 7058. https://doi.org/10.3390/su14127058
Ahmad S, Khan D, Magda R. Assessing the Influence of Financial Inclusion on Environmental Degradation in the ASEAN Region through the Panel PMG-ARDL Approach. Sustainability. 2022; 14(12):7058. https://doi.org/10.3390/su14127058
Chicago/Turabian StyleAhmad, Seemab, Dilawar Khan, and Róbert Magda. 2022. "Assessing the Influence of Financial Inclusion on Environmental Degradation in the ASEAN Region through the Panel PMG-ARDL Approach" Sustainability 14, no. 12: 7058. https://doi.org/10.3390/su14127058