UNVEILING THE EFFECT OF DIGITAL FINANCIAL INCLUSION ON ENVIRONMENTAL DEGRADATION IN ASIAN ECONOMIES UNDER LCC HYPOTHESIS

Revisiting the environmental costs of digitalization: evidence from advanced economies

Digitalisation has greatly changed development approaches worldwide, including increasing efficiency and productivity in sectors. But the potential impact on the environment is unclear. This study examines the effects of digitalisation on the environment in G7 economies between 2000 and 2023. A composite digitalization index is built by applying principal component analysis (PCA) and the carbon dioxide (CO 2 ) emissions is used as a proxy for environmental degradation. The study uses PMG-ARDL model to provide strong empirical analysis and FMOLS model as a robustness test due to cross-sectional dependence, slope heterogeneity and mixed integration order. The results show that digitalisation helps to lower CO 2 emissions in G7 countries, supporting environmental sustainability through technological progress. The EKC is verified, as initial economic development leads to rising emissions and beyond a threshold, lower emissions. In addition, energy use is a major contributor to environmental damage, and FDI results a decline of emissions. The findings underline the importance of policymakers to incorporate environmental concerns in digital transformation policies. To achieve maximum environmental benefits from digitalization, it is important to promote energy-efficient digital infrastructure and provide incentives for green innovation. The study highlights the need to make sure digital development is aligned with sustainability goals.

The role of financial inclusion in achieving the Sustainable Development Goals: evidence from a fragile economy

This study aims to examine whether financial inclusion advances sustainable development in a fragile and institutionally constrained economy. Using Palestine as a case study, it assesses the association between financial inclusion and a composite measure of sustainable development capturing both economic and social dimensions of the Sustainable Development Goals (SDGs) over the period 2012–2024. This study adopts a quantitative econometric design grounded in technological and macroeconomic perspectives. Financial inclusion is measured using multiple banking and financial indicators, including nonperforming loans, the number of bank accounts, the number of bank branches and offices, automated teller machines (ATMs), total deposits and total credit facilities. Sustainable development is measured using a composite Z-score index. Fixed effects (FE) models are used for the main estimations, while one-year-lagged specifications are used as a robustness check. Results indicate a positive and statistically significant association between financial inclusion and sustainable development in Palestine. Evidence suggests that digital and credit-based channels (e.g. accounts, ATMs, deposits and credit facilities) contribute more consistently to economic and social progress than traditional physical outreach (bank-branch expansion), which appears weak and can be occasionally adverse. For fragile settings, the findings imply that policymakers and financial institutions should prioritize digital financial services and inclusive credit mechanisms to accelerate progress toward the SDGs. The results also indicate that expanding physical branch networks alone may be insufficient and should be complemented (or substituted where appropriate) by technology-enabled channels and access-to-credit policies. This study adds context-specific evidence from Palestine to the literature on the financial inclusion–sustainable development nexus in fragile economies. It contributes by operationalizing sustainable development as a composite Z-score index spanning economic and social indicators and by highlighting that, under institutional constraints, digital and credit-driven inclusion channels may yield stronger development payoffs than conventional branch expansion.

Fin tech innovation, financial inclusion, and sustainable economic development: evidence from Jordan

Drivers of Digital Financial Inclusion in Sri Lanka: Insights from the Global Findex Database - 2025

Digital financial inclusion improves the lives of marginalized people, enhances economic growth, and reduces poverty by ensuring sustainable development. It is important to study the key drivers of digital financial inclusion, as financial inclusion and digital gaps exist in Sri Lanka's socio-economic context and can limit equal access to and use of digital financial services. Therefore, the study intends to identify the key determinants of access and usage of digital financial services in Sri Lanka. To attain this objective, the study collected secondary data employing the Global Findex Database 2025. Data analysis was performed using binary logistic re-gressions by compiling two dimensions of access and usage of digital financial inclusion, and eight models were derived representing different indicators of these two dimensions. Thus, results revealed that females are less likely to have access to certain digital financial services, while no significant relationship is observed between gender and the usage of digital financial services. Further-more, the findings indicate that age has a negative and statistically significant effect on both access to and usage of digital financial services. Moreover, higher educational attainment and participation in the economically active population (workforce) increase the likelihood of accessing and using digital financial services. However, the results also show that residing in the rural sector has a significant negative relationship only with access to a digitally enabled account and the use of digital merchant payments, whereas its relationship with accessing and using debit and credit cards, as well as making or receiving digital payments, is statistically insig-nificant. Accordingly, the present study has generated new empirical findings for the academic literature by providing key strategies to advance digital financial inclusion in Sri Lanka.

Digital Financial Inclusion and Its Impact on Economic Growth in India: An Analytical Study Towards Viksit Bharat @2047

Digital financial inclusion has emerged as a transformative force driving inclusive economic growth in India. This study investigates the relationship between the expansion of digital financial services—particularly Unified Payments Interface (UPI), mobile banking, digital payments, and fintech innovations—and key macroeconomic outcomes including GDP growth, formal credit access, poverty reduction, and economic formalisation during the period 2016–2025. Drawing on secondary data from the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), Ministry of Statistics and Programme Implementation (MOSPI), and the World Bank Global Findex Database, the analysis demonstrates a strong positive association between digital transaction volumes and economic growth indicators. The findings reveal that the rapid scaling of digital payment infrastructure has facilitated formalisation of the economy, improved last-mile delivery of government benefits through Direct Benefit Transfer (DBT), expanded credit access for micro, small and medium enterprises (MSMEs), and supported consumption-led recovery in the post-pandemic period. Despite these gains, challenges including the rural–urban digital divide, cybersecurity risks, limited digital literacy, and uneven regional adoption continue to constrain the full potential of digital finance. The study concludes with policy recommendations aimed at strengthening digital infrastructure, enhancing financial literacy, and refining regulatory frameworks to accelerate India’s progress towards the vision of Viksit Bharat @2047.

FinTech for a sustainable India: digital financial innovation as a driver of low-carbon growth