Does education matter in China? Myths about financial inclusion and energy consumption

China is the most polluted economy in the world, facing the challenges of increased CO2 emissions. In this way, energy consumption is a key factor in CO2 emissions. To this end, this study empirically examines the effects of financial inclusion and education on energy consumption by employing the ARDL approach for China during the period 1995–2019. The results suggest that financial inclusion has a positive effect on renewable energy consumption, but a negative impact on renewable energy and total energy consumption. The results show that education reduces non-renewable consumption and increases renewable energy consumption in the long term. Long-run and short-run findings are also consistent and robust in the sensitivity analysis. Based on findings, China should invest in the education sector and increase financial inclusion to reduce energy consumption to meet environmental sustainability.