THE FINANCIAL INCLUSION-ENVIRONMENTAL QUALITY NEXUS: DO INFORMATION AND COMMUNICATION TECHNOLOGIES MAKE A DIFFERENCE?

Environmental degradation occurs during the initial phase of development. However, after a turning point, the benefits of economic growth supported by the accelerated development of information and communication technology (ICT) can be used for environmental conservation. This research examines the relationship between financial inclusion, ICT, and environmental quality, including the development of ICT in influencing the relationship between financial inclusion and environmental quality. To obtain the research objectives, we used secondary data for the period 2010 to 2021 from 34 provinces in Indonesia using the panel data regression method. This finding is robust for different measures of the financial inclusion index constructed by a modified estimation model. The insights to financial inclusion and emission can be a reference for regulations that financial inclusion and ICT can be used as mitigation measures for environmental quality. Therefore, policymakers should consider the synergistic effect of financial inclusion and ICT in designing development and climate change policies.