Published on: April 2026
CRITICAL ROLE OF FINANCIAL INCLUSION IN GREEN GROWTH
Thapaneey
Dr. Rashmi Manhas
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Abstract
This research examines the relationship between financial inclusion and green growth across 47 low- and middle-income countries from 2000 to 2024. Employing a mixed-methods design — combining two-way fixed-effects panel regressions with six in-depth country case studies — the study demonstrates that financial inclusion is a critical enabler of green economic transformation, not merely a poverty-reduction instrument. Empirical results reveal that a 10 per cent improvement in financial inclusion scores corresponds to a 6.8 per cent reduction in carbon intensity, a 4.3 per cent increase in community-level renewable energy adoption, and productivity gains of up to 23 per cent among micro-enterprises with access to green finance. Seven key transmission channels are identified, including green credit, climate-risk insurance, digital payments for clean energy, and financial literacy for sustainable consumption. Digital financial technologies significantly expand green-finance reach in underserved regions, while persistent gender inequalities continue to constrain inclusive green growth. The study recommends integrating environmental criteria into national financial-inclusion frameworks, developing tailored green microfinance products, and fostering multi-stakeholder collaboration. The estimated annual investment potential through inclusive green-finance mechanisms reaches USD 2.3 trillion by 2030 — a transformative contribution toward the Sustainable Development Goals and the Paris Agreement.
How to Cite this Paper
Thapaneey, (2026). Critical Role of Financial Inclusion in Green Growth. International Journal of Creative and Open Research in Engineering and Management, <i>02</i>(04). https://doi.org/10.55041/ijcope.v2i4.855
Thapaneey, . "Critical Role of Financial Inclusion in Green Growth." International Journal of Creative and Open Research in Engineering and Management, vol. 02, no. 04, 2026, pp. . doi:https://doi.org/10.55041/ijcope.v2i4.855.
Thapaneey, . "Critical Role of Financial Inclusion in Green Growth." International Journal of Creative and Open Research in Engineering and Management 02, no. 04 (2026). https://doi.org/https://doi.org/10.55041/ijcope.v2i4.855.
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- •Published on: Apr 28 2026
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