Uncovering the potential impacts of financial inclusion and human development on ecological sustainability in the presence of natural resources and government stability: Evidence from G-20 nations

Abstract

The present research investigates the interconnection among human development, natural resources, financial inclusion, and ecological footprint in the context of G20. From 2000 to 2020, we utilized second-generation panel techniques of method of momentum quantile regression (MMQR) and augmented mean group (AMG). The observed data supports the existence of cross-sectional interdependence, panel co-integration, and stationary characteristics among the variables. Furthermore, the findings obtained from the MMQR analysis demonstrate that both financial inclusion and human development exert a noteworthy mitigating effect on the ecological footprint in the G20 nations. Natural resources are associated with environmental pollution and not aligned with the sustainability agenda. Moreover, the study period witnessed a decrease in the EF due to the enhancement of government effectiveness. Similarly, it is recommended that raising awareness among community members and implementing regulatory measures by governments could yield favorable outcomes. Furthermore, the study emphasizes the constraints and potential avenues for future research.