The role of financial inclusion and technological innovation in stimulating environmental sustainability in the European countries: A new perspective based on load capacity factor

Given the alarming level of climate change, policymakers across the globe are seeking strategies to mitigate environmental pollution to achieve sustainable development. In this context, renewable energy and technological advancements have emerged as an effective way to lower pollution and attain sus...

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Main Authors: Ahmed Samour, Riza Radmehr, Ernest Baba Ali, Samira Shayanmehr, Elvis Kwame Ofori, Jana Ivanič Porhajašová, Mária Babošová, Miroslava Kačániová, Stephen Kelechi Dimnwobi
Format: Article
Language:English
Published: Elsevier 2024-11-01
Series:Heliyon
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Online Access:http://www.sciencedirect.com/science/article/pii/S240584402416001X
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author Ahmed Samour
Riza Radmehr
Ernest Baba Ali
Samira Shayanmehr
Elvis Kwame Ofori
Jana Ivanič Porhajašová
Mária Babošová
Miroslava Kačániová
Stephen Kelechi Dimnwobi
author_facet Ahmed Samour
Riza Radmehr
Ernest Baba Ali
Samira Shayanmehr
Elvis Kwame Ofori
Jana Ivanič Porhajašová
Mária Babošová
Miroslava Kačániová
Stephen Kelechi Dimnwobi
author_sort Ahmed Samour
collection DOAJ
description Given the alarming level of climate change, policymakers across the globe are seeking strategies to mitigate environmental pollution to achieve sustainable development. In this context, renewable energy and technological advancements have emerged as an effective way to lower pollution and attain sustainable development. This study evaluates the effect of financial inclusion, technological innovation, and renewable energy on the load capacity factor (LCF) in European countries from 2004 to 2018. LCF is considered the most comprehensive indicator of ecological sustainability, combining both the biocapacity factor and ecological footprint. Hence, the present work fills the literature gap by exploring, for the first time, the effect of financial inclusion on the LCF. Applying the advanced Method of Moment Quantile Regression (MMQR), the study demonstrates that technological innovation and economic growth have adverse effects on LCF while renewable energy and financial inclusion promote LCF. The study indicates that technological innovation and economic growth undermine ecological excellence in European nations while green energy and financial inclusion enhance it. Moreover, the findings of the causality analysis reveal a causal association between financial inclusion, renewable energy, and LCF. Our study recommends prioritizing financial inclusion alongside investments in renewable energy to enhance ecological sustainability.
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spelling doaj-art-d2d55226056349229e7fe2b8f560b1872025-08-20T02:07:31ZengElsevierHeliyon2405-84402024-11-011022e3997010.1016/j.heliyon.2024.e39970The role of financial inclusion and technological innovation in stimulating environmental sustainability in the European countries: A new perspective based on load capacity factorAhmed Samour0Riza Radmehr1Ernest Baba Ali2Samira Shayanmehr3Elvis Kwame Ofori4Jana Ivanič Porhajašová5Mária Babošová6Miroslava Kačániová7Stephen Kelechi Dimnwobi8Accounting Department, Dhofar University, Salalah, Sultanate of OmanDepartment of Agricultural Economics, Oklahoma State University, USADepartment of Agricultural Economics, University for Development Studies, Tamale P.O. Box TL1350, GhanaDepartment of Agricultural Economics, Ferdowsi University of Mashhad, IranDepartment of Management Science and Engineering, School of Management Engineering, Zhengzhou University, ChinaSlovak University of Agriculture in Nitra, Faculty of Agrobiology and Food Resources, Institute of Plant and Environmental Sciences, SlovakiaSlovak University of Agriculture in Nitra, Faculty of Horticulture and Landscape Engineering, Institute of Horticulture, SlovakiaUniversity of Economics and Human Sciences in Warsaw, School of Medical and Health Sciences, Okopowa 59, Warszawa, 01 043, Poland; Department of Economics, Nnamdi Azikiwe University, Awka, Nigeria and Strategy, Execution and Evaluation (SEE) Office, Awka, NigeriaDepartment of Agricultural Economics, University for Development Studies, Tamale P.O. Box TL1350, GhanaGiven the alarming level of climate change, policymakers across the globe are seeking strategies to mitigate environmental pollution to achieve sustainable development. In this context, renewable energy and technological advancements have emerged as an effective way to lower pollution and attain sustainable development. This study evaluates the effect of financial inclusion, technological innovation, and renewable energy on the load capacity factor (LCF) in European countries from 2004 to 2018. LCF is considered the most comprehensive indicator of ecological sustainability, combining both the biocapacity factor and ecological footprint. Hence, the present work fills the literature gap by exploring, for the first time, the effect of financial inclusion on the LCF. Applying the advanced Method of Moment Quantile Regression (MMQR), the study demonstrates that technological innovation and economic growth have adverse effects on LCF while renewable energy and financial inclusion promote LCF. The study indicates that technological innovation and economic growth undermine ecological excellence in European nations while green energy and financial inclusion enhance it. Moreover, the findings of the causality analysis reveal a causal association between financial inclusion, renewable energy, and LCF. Our study recommends prioritizing financial inclusion alongside investments in renewable energy to enhance ecological sustainability.http://www.sciencedirect.com/science/article/pii/S240584402416001XEnvironmental sustainabilityLCFFinancial inclusionMMQREuropean countries
spellingShingle Ahmed Samour
Riza Radmehr
Ernest Baba Ali
Samira Shayanmehr
Elvis Kwame Ofori
Jana Ivanič Porhajašová
Mária Babošová
Miroslava Kačániová
Stephen Kelechi Dimnwobi
The role of financial inclusion and technological innovation in stimulating environmental sustainability in the European countries: A new perspective based on load capacity factor
Heliyon
Environmental sustainability
LCF
Financial inclusion
MMQR
European countries
title The role of financial inclusion and technological innovation in stimulating environmental sustainability in the European countries: A new perspective based on load capacity factor
title_full The role of financial inclusion and technological innovation in stimulating environmental sustainability in the European countries: A new perspective based on load capacity factor
title_fullStr The role of financial inclusion and technological innovation in stimulating environmental sustainability in the European countries: A new perspective based on load capacity factor
title_full_unstemmed The role of financial inclusion and technological innovation in stimulating environmental sustainability in the European countries: A new perspective based on load capacity factor
title_short The role of financial inclusion and technological innovation in stimulating environmental sustainability in the European countries: A new perspective based on load capacity factor
title_sort role of financial inclusion and technological innovation in stimulating environmental sustainability in the european countries a new perspective based on load capacity factor
topic Environmental sustainability
LCF
Financial inclusion
MMQR
European countries
url http://www.sciencedirect.com/science/article/pii/S240584402416001X
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