Realizing the 2050 Paris climate agreement in West Africa: the role of financial inclusion and green investments

International organizations have emphasized the importance of global economies supporting efforts to combat climate change. The Paris Agreement or Agenda 2050 urges nations to ensure that the increase in global temperature is limited to 1.5 degrees C. Studies have analyzed the factors that contribute to harmful emissions, particularly carbon dioxide emissions, in order to limit temperature rise. However, since there are other equally harmful pollutants, this study evaluates the impact of financial inclusion and green investment on reducing greenhouse gas emissions. The study uses data from West Africa, where environmental pollution has significantly increased. The study employed regression analysis while controlling for economic growth, foreign direct investment (FDI), and energy consumption. The study's key findings reveal that financial inclusion and green investment have a monotonic effect on reducing greenhouse gas emissions. Additionally, the study confirms the environmental Kuznets curve hypothesis and the pollution haven effect for the region. Technological innovation reduces pollution, but green investment and financial inclusion reinforce this effect. Therefore, the study recommends that governments in the sub-region commit to supporting green investment and environmentally friendly technological innovations. It is also crucial to strictly enforce laws regulating the operations of multinational corporations in the region.

Automated summary

International organizations emphasize the importance of global economies supporting climate change efforts. The Paris Agreement and Agenda 2050 urge nations to limit the global temperature increase to 1.5 degrees C. This study evaluates the impact of financial inclusion and green investment on reducing greenhouse gas emissions, using data from West Africa. The study finds that financial inclusion and green investment have a monotonic effect on reducing emissions, confirming the environmental Kuznets curve hypothesis and the pollution haven effect for the region.