Assessing the Influence of Financial Inclusion on Environmental Degradation in the ASEAN Region through the Panel PMG-ARDL Approach

The rise of financial inclusion in recent years has attracted the attention environmental economists to assess its role degradation. Therefore, this study was carried out with aim exploring impact on degradation ASEAN region using balanced panel data for period 2000–2019. First, unit root tests were employed examine each series stationarity. Findings depicted that all are stationary at first difference. Second, Westerlund and Edgerton’s error correction cointegration test handle heterogeneity cross-sectional dependence. Third, PMG-ARDL approach used explore long- short-term effects found inclusion, energy use, economic growth urbanization causing region. Furthermore, coefficient is 0.15, which statistically significant 5%. In short run, a 1% increase results 0.15% degradation, ceteris paribus. long CO2 have positive association 5% value 0.42. This implies 0.42% run. Finally, recommends must be incorporated into climate change adaptation efforts local, national regional levels address side increased emissions.