Environmental sustainability via sustainable development: The role of green innovation, clean energy and financial inclusion.

Achieving environmental sustainability remains a remarkable challenge for countries around the globe, as it fundamentally requires an equilibrium between economic growth and environmental quality. Researchers have identified various factors to attain environmental sustainability. Among these factors, financial inclusion has received immense attention from academics and research. In this context, this study investigates the role of financial inclusion, economic and financial risks, green energy, and environmentally friendly innovation in shaping sustainable development (a combination of CO2 emissions, the material footprint, income, life expectancy and education) in emerging economies. The study is carried out by selecting ten (10) emerging economies. The time period of the study ranged from 2004 to 2020. To capture the impacts of independent variables on sustainable development, we use a novel sustainable development index that integrates human development and ecological impact. This study uses the moments quantile regression (MMQR) method to estimate the empirical model. We find that financial inclusion is important in shaping sustainable development. The positive associations identified between financial inclusion and sustainable development underscore its significance as a catalyst for economic growth with environmental sustainability. The findings affirm the applicability of financial inclusion in promoting sustainable development in emerging nations.