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https://doi.org/10.1080/1331677X.2023.2192764

Linkages between renewable energy, financial development, and environmental sustainability in Asian countries

Huaying Yu
Rabia Nazir
Jianjie Huang
Haiwei Li


Puni tekst: engleski pdf 1.659 Kb

preuzimanja: 141

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Sažetak

Financial development and green technologies are imperative to
accomplish sustainable development goals in developed and developing
economies. Therefore, this study examines the dynamic influence
of renewable energy consumption, financial development,
and green technology innovations on carbon dioxide emissions
using selected Asian countries’ data from 1990 to 2019. It applies
the Cross-Sectional Augmented Distributed Lag model to address
the slope heterogeneity and the cross-sectional dependency issues
in our panel. The long-run results revealed that financial development
increases carbon emissions while green innovation and
renewable energy consumption reduce emissions. Nevertheless,
the emissions mitigating effects of both variables significantly varied,
and green innovation possesses a more substantial impact on
emissions reduction. The short-run results also produce similar outcomes;
however, their coefficient’s magnitude is relatively lower.
Moreover, the error correction term is significantly negative, suggesting
a 25% speed of adjustment in case of any deviation from
steady-state equilibrium. These results suggest integrating renewable
energy and green technology innovation into the financial
sector to neutralise its negative consequences

Ključne riječi

Renewable energy; green innovation; financial development; environmental sustainability

Hrčak ID:

314867

URI

https://hrcak.srce.hr/314867

Datum izdavanja:

25.5.2023.

Posjeta: 347 *