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Does natural resource rent and financial inclusion curb carbon emissions? Empirical evidence from E7 and G7 economies

Bibliographic Data

ID22236232
AuthorsShnehal Soni (Birla Institute of Technology and Science, Pilani - Goa Campus), R L Manogna (Birla Institute of Technology and Science, Pilani - Goa Campus, corresponding author)
Year2025
Volume12
Issue1
Publication date2025-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueHumanities and Social Sciences Communications (JOURNAL)
Journal identifiersISSN: 2662-9992 • E-ISSN: 2662-9992
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1057/s41599-025-04786-z
OpenAlexW4409017229
LanguageEN
Citations received1
References cited66

The study here analyzes the linkage between natural resource rent (NRR), financial inclusion, and carbon emissions taking foreign direct investment (FDI) and institutional quality as control variables in the emerging (E7) and developed (G7) economies during 2004–2021. Fully modified ordinary least squares (FMOLS) techniques and dynamic ordinary least squares (DOLS) are applied for estimating the model and the method of moments quantile regression (MMQR) is used for checking the robustness of the results. Findings indicated that NRR depicted a positive impact on carbon emissions in both emerging and developed economies and financial inclusion showed a negative impact on carbon emissions in emerging economies but lacked statistical significance with respect to developed economies. FDI inflows depicted a positive impact on carbon emissions with respect to all the economies taken together and with respect to institutional quality there was a varied impact of institutional factors on carbon emissions in both E7 and G7 nations. In order to lower carbon emissions, the policymakers should prioritize the establishment of regulatory frameworks that promote the delivery of sustainable financial services. They should focus on the enhancement of institutional quality and reduce the dependence on resource rents derived from fossil fuels

Business · Carbon fibers · Economics · Empirical evidence · Empirical research · Financial inclusion · Financial services · Natural gas · Natural resource · Natural resource economics · Chemistry · Energy and Environment Impacts · Energy, Environment, and Transportation Policies · Energy, Environment, Economic Growth · Ecology · Finance

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Unique citing works1
Citations per year1
Citation span2026 - 2026 (1)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 1
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