Abstract
This paper seeks to examine the effect of financial inclusion on energy efficiency financing to limit energy poverty in OECD. The study uses 1998-2018 for the OECD economy to connect the nexus between financial inclusion, energy efficiency and poverty indices, country-wise GDP, and financial inclusion index. The findings show that a financial inclusion 1% increase improves 14% energy efficiency, and this energy efficiency lowers energy poverty by 28%. These results are deduced via the entropy technique and compatible with prior research on energy efficiency and poverty. This study illustrates the different policy changes that may be implemented based on the resultant deductions. The energy efficiency indices are affected by FI substantially, albeit in various ways. Unsustainable financial inclusion increases energy costs, but not to the level of energy use and environmental severe pollution. The increasing concern about environmental contamination should show in the energy industry of OECD.
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