Green Finance and Environmental Sustainability: Evidence from Developing Economies
Keywords:
Green Finance, Environmental Sustainability, Developing EconomiesAbstract
The current research aims to investigate the effect of green finance on environmental sustainability in 13 establishing countries over the period of 2005-2020 through static panel estimation models. Green finance is measured via financial support for research and development on clean energy. Whereas, environmental sustainability is computed through carbon emissions. Consistent with previous empirical studies, green finance significantly reduces the carbon emission in developing economies. The findings are in line innovation growth theory. Overall, the study underscores the crucial responsibility of green finance in attaining sustainable development and calls for aligning financial mechanisms with broader environmental goals to address global challenges.
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