Influence of Transport Infrastructure Quality and Green Finance on Air Quality in Emerging Economies

Abstract

The issue of air pollution resulting from particle matter PM2.5 continues to attract global concern. This study shows the influence of Transport infrastructure quality and Green Finance on Air Quality in Emerging Economies from 1998–2022. Utilizing a panel Auto-Regressive Distributed Lag (ARDL) model and analyze the impacts of Transport infrastructure quality, Green Finance, and GDP Per capita growth renewable energy consumption on PM2.5. The Environmental Kuznets Curve (EKC) hypothesis serves as the theoretical framework. The results show that transport infrastructure quality significantly deteriorates air quality, while green finance initiatives improve it. Specifically, CO2 emissions from transport, consumption of petroleum and emissions form petroleum and other liquid fuels worsens the PM2.5levels, whereas renewable energy consumption and mitigate Air pollution. Urbanization and population growth also contribute to worsen air quality. An increase in per capita gross domestic product (GDP) will increase PM2.5 emissions in short run and long run (GDP)2 has positive impact in long run and short run so, it gradually decreases PM2.5 level. GDP and (GDP)2 has inverse relationship it shows that EKC theory is validated. Green Finance has positive impact on air quality. We should encourage government to improve Transport Infrastructure Quality to reduce PM2.5 level and promote the use of electric vehicles instead of combustion engines and environmentally friendly policies to improve air quality and public health because transport infrastructure quality is not good in Emerging economies.