On the nexus between energy efficiency, financial inclusion and environment: Evidence from emerging seven economies using novel research methods

Figures & data

Figure 1. Energy use in E7 economies between 1965 and 2017.

Source: B.P. Statistical Review (2018).

Table 1. Variables' description and sources.

Variable	Description	Source
Carbon dioxide (CO2) emission	Measured in kiloton (kt).	https://databank.worldbank.org/source/world-development-indicators#advancedDownloadOptions
Financial Inclusion (FINC)	Index computed by using variables such as commercial bank's institutions, branches, outstanding deposits (% of GDP), Numbers of ATMs per 100,000 adults, and outstanding loans from commercial banks (% GDP).	https://data.imf.org/
GDP	Measured at constant US 2010 prices.	https://databank.worldbank.org/source/world-development-indicators#advancedDownloadOptions
Energy productivity (E.P.)	GDP per unit of Total primary energy supply.	https://stats.oecd.org/#
Globalization	Index.	https://kof.ethz.ch/en/forecasts-and-indicators/indicators/kof-globalisation-index.html
Composite Risk Index (CRI)	cover all three political, economic, and financial risk indices.	https://www.prsgroup.com/explore-our-products/international-country-risk-guide/

Table 2. Normality check and descriptive statistics.

	CO2	EP	FININCL	GLOB	CRI	GDP
Mean	5.9805	3.9363	−8.04E-09	1.8108	1.8456	12.217
Median	5.7024	4.0043	−0.6135	1.8058	1.8492	12.160
Std. Dev.	0.4862	0.1775	1.5975	0.0290	0.0310	0.3040
Jarque-Bera	14.685	8.8614	29.253	0.8822	2.0457	22.007
Probability	0.0006	0.0119	0.0000	0.6433	0.3595	0.0000

Source: Authors own estimations.

Table 3. Slope heterogeneity and cross-section dependence.

Slope Heterogeneity Test	Model-1	Model-2
$\stackrel{\sim }{\Delta }$	3.853***	4.874***
${\stackrel{\sim }{\Delta }}^{\mathrm{Adjusted}}$	3.268***	4.133***
Cross-Section Dependence
CO2	EP	FINC
14.07***	7.469***	15.023***
GDP	CRI	Glob
17.103***	4.163***	6.583***

Note: Significance level is denoted by

*** ,

** and

* for 1%, 5% and 10%.

Source: Authors own estimations.

Table 4. Unit root testing (Pesaran, 2007).

Variables	$\text{Intercept and Trend}$
	$\mathrm{I}(0)$	$\mathrm{I}(1)$
${CO}_2$	−2.295	−3.651***
$EP$	−2.034	−2.852*
$\mathit{FINC}$	−1.713	−2.904*
$\mathit{Glob}$	−2.052	−3.921***
$\mathit{CRI}$	−2.300	−3.426***
$\mathit{GDP}$	−1.557	−2.922*

Note: Significance level is denoted by

*** ,

** and

* for 1%, 5% and 10%. I(0) is for level, and I(1) is for the first difference.

Source: Authors own estimations.

Table 5. Cointegration results (Westerlund-2007).

Statistics	Model-1	Model-2
Gt	−5.371***	−4.431***
Ga	−8.201***	−8.341***
Pt	−10.731***	−9.345***
Pa	−13.312***	−12.341***

Note: Significance level is denoted by

*** ,

** and

* for 1%, 5% and 10%.

Source: Authors own estimations.

Table 6. Panel quantile regression results.

$q_{0.25}$
$\mathbf{Variables}$	$\mathbf{Model}-1$	$\mathbf{Model}-2$
	$\mathbf{Coefficients}$$[\mathbf{Std}.\mathbf{Error}]$	$\mathbf{Coefficients}$$[\mathbf{Std}.\mathbf{Error}]$
$\mathit{FINC}$	0.197*** [0.093]	–
$\mathit{GDP}$	–	0.858** [0.373]
$EP$	−0.173*** [0.0199]	−0.147*** [0.0211]
$\mathit{Glob}$	0.946*** [0.122]	0.367*** [0.0672]
$\mathit{CRI}$	0.703*** [0.1023]	0.521*** [0.0791]
$\mathit{Constant}$	1.421*** [0.299]	1.722*** [0.201]
${\mathit{q}}_{0.50}$
$\mathit{FINC}$	0.211*** [0.0148]	–
$\mathit{GDP}$	–	1.077*** [0.0217]
$EP$	−0.170*** [0.0230]	−0.189*** [0.034]
$\mathit{Glob}$	0.208*** [0.0188]	0.374*** [0.0761]
$\mathit{CRI}$	0.426*** [0.0811]	0.572*** [0.0991]
$\mathit{Constant}$	1.0272*** [0.1724]	1.724*** [0.321]
${\mathit{q}}_{0.75}$
$\mathit{FINC}$	0.2112*** [0.0062]	–
$\mathit{GDP}$	–	1.075*** [0.0451]
$EP$	−0.182*** [0.0253]	−0.137*** [0.0023]
$\mathit{Glob}$	0.392*** [0.076]	0.788*** [0.1043]
$\mathit{CRI}$	0.622*** [0.1082]	0.564*** [0.0881]
$\mathit{Constant}$	1.8422*** [0.2641]	1.821*** [0.231]

Note: Significance level is denoted by

*** ,

** and

* for 1%, 5% and 10%.

Source: Authors own estimations.

Table 7. Causality check.

Dumitrescu Hurlin Panel Causality
${\mathbf{H}}_0$	$\mathbf{Wald}-\mathbf{Stats}$	$\overline{\mathbf{Z}}-\mathbf{Stats}$	p-value(s)
EP-CO2	6.62***	4.80	0.000
CO2-EP	5.82**	2.49	0.012
FINC-CO2	6.17***	2.76	0.005
CO2-FINC	5.33***	3.58	0.004
GDP-CO2	4.79*	1.70	0.088
CO2-GDP	5.44***	2.82	0.006
GLOB-CO2	7.79***	4.93	0.000
CO2-GLOB	3.41	0.64	0.517
CRI- CO2	6.09***	3.16	0.008
CO2-CRI	5.84**	2.50	0.012

Note: Significance level is denoted by

*** ,

** and

* for 1%, 5% and 10%.

Source: Authors own estimations.

B.P. Statistical Review. (2018). Statistical Review of World Energy Reports. https://www.bp.com/en/global/corporate/energy-economics/statistical-review-of-world-energy.html

 Google Scholar

Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross‐section dependence. Journal of Applied Econometrics, 22(2), 265–312. https://doi.org/10.1002/jae.951

 Web of Science ®Google Scholar