Green finance,financial inclusion,and trade adjusted carbon emissions: Unravelling the path to sustainable development in the BRICST region

Abstract

The policymakers in emerging economies have accelerated their efforts to move toward sustainable development due to the associated challenges of environmental degradation and disparities in economic growth. The present study is an effort in that direction; it looks at trade-adjusted carbon emissions (TACE) to help policymakers develop a relevant policy response to mitigate climate change in the BRICST (comprising Brazil, Russia, India, China, South Africa, and Turkey) regions. The study investigates the impact of financial inclusion, green finance, and sustainable economic development on carbon emissions adjusted for trade. The study utilizes the panel dataset of the BRICST regions from 2000 to 2023 by employing the econometric methods of the Method of Moments Quantile Regression (MMQR) approach. It recommends green finance, financial inclusion, and sustainable economic development to curb TACE. The research findings indicate a noteworthy correlation between green finance, financial inclusion, sustainable economic development and TACE. The study recommends policy measures for the BRICST regions that align with the Sustainable Development Goals, focusing on green finance, financial inclusion, and sustainability. By promoting renewable energy, enhancing financial access, and encouraging international cooperation, these strategies aim to reduce TACE and foster sustainable development.