Toward green growth in China: The role of green finance investment, technological capital, and renewable energy consumption

Green growth path dependence momentum under the prism of COP26: the role of financial deepening, ICT development, and export diversification

Financial deepening is important in resource allocation for more productive enterprises, leading to sustainable green growth. Moreover, rapid development in the digital economy and export diversification significantly affect green growth. From this perspective, our study explores the impact of financial deepening, ICT development, and export diversification on green growth in China's economies from 1996 to 2021. The study explores the linkage between financial deepening, ICT development, export diversification, and green growth by employing the nonlinear autoregressive distributed lag (NARDL) approach. The results obtained in the long run are as follows: positive shock in financial deepening brings positive change in green growth, whereas negative shock in financial deepening reduces green growth. In the long run, positive shock in ICT enhances green growth, but negative shock in ICT does not impact green growth. Moreover, positive shock in export diversification brings positive change in green growth, whereas negative shock in export diversification reports an insignificant impact on green growth. Based on findings, it is suggested that financial deepening, ICT development, and export diversification are conducive to sustainable green growth.

Green development in BRICS: unraveling the effects of environmental technology, R&D spending, and green investment in the context of COP21

The BRICS countries are renowned for their rapidly developing economies and growing populations. However, the environmental challenges associated with their economic growth have raised concerns about sustainability and the need for green growth strategies. In recent times, empirics have started to analyze the determinants of green growth, but very few have focused on environmental technological capital, R&D, and green investment. This study examines the impact of environmental technological capital, R&D, and green investment on green growth in BRICS economies from 1995 to 2020 using a panel ARDL model. The study found that green investment, environmental technology, and R&D positively facilitate green growth in the BRICS economies in the long run. The long-run country-wise estimate of green investment is positively significant in Brazil and Russia. On the other side, the estimated coefficient of environmental technology is positive in Brazil, India, and China. However, the estimated coefficient of R&D is positive in China only. In the short run, the results are a mix, whether group-wise or country-wise. Based on the results, the study will recommend policy suggestions for green R&D, development of environmental technology, and green investment that help in enhancing green growth.

Financial fragility, human resource management, and transition to renewable energy in Asian economies: a comparative analysis

The main hurdle in deploying renewable energy projects is the high initial cost, making it difficult for businesses and individuals to afford it. The fragility of the financial sector and human resource management further slows the pace of renewable energy demand. Therefore, we aim to investigate the impact of financial fragility and human resource management on renewable energy consumption over time horizon 1997-2020. To that end, the analysis employed the ARDL-PMG model. For Asia as a whole and all other sub-regions, including South East Asia, East Asia, South Asia, and Western Asia, the estimates for bank non-performing loans are notably negative. In general, these findings imply that a rise in financial fragility significantly reduces renewable energy consumption in the long run. In the short run, the estimates attached to both bank non-performing loans and bank costs are negatively significant in Asia and sub-regions of Western Asia only. The results for the human resources show that it exerts a significant and positive influence on renewable energy demand in Asia as a whole, South Asia, East Asia, and Western Asia. The estimates attached to human resources are statistically insignificant in all models in the short run. In the end, some important public strategies and their implementations have been discussed.

Do green financial and non-financial policies achieve the carbon neutrality target?

Due to the pressing need to combat climate change, reaching carbon neutrality-defined as having net-zero greenhouse gas emissions-has elevated to the status of a worldwide priority. While non-financial policies concentrate on regulation and incentives to promote environmentally friendly behavior, green financial policies strive to move investment toward low-carbon and sustainable initiatives. Therefore, the study aims to examine how green financial and non-financial policies affect carbon neutrality in China from 1995 to 2021. For analyzing the linear and nonlinear estimates, the study has employed the autoregressive distributed lag (ARDL) and nonlinear autoregressive distributed lag (NARDL) frameworks. The findings suggest that in the linear framework, green finance policies and environmental policy stringency encourage renewable energy consumption and discourage CO2 emissions. In the nonlinear framework, the positive shocks in the green finance policies and environmental policy stringency increase renewable energy consumption, and the negative shock in both types of policies discourages renewable energy consumption. In the CO2 model, a positive shock in green finance policies and environmental policy stringency reduces CO2 emissions, and a negative change in both these policies is insignificant. Since the positive and negative changes in both these policies significantly and differently impact renewable energy consumption and CO2 emissions; thus, policymakers should take into account positive and negative changes in both these policies while formulating policies for carbon neutrality targets in China.

Evaluating policy-driven capital for renewable energy investments in the presence of cross-sectional dependence: perspectives from financial institutions and markets

Access to financing is crucial for renewable energy projects due to their high initial capital costs and long payback times. In this regard, well-performing financial institutions and markets can provide the necessary capital for investments in renewable energy sources. This study emphasizes the impact of financial institutions and markets on renewable energy investment using data from various regions (Asia, Africa, Europe, and America). The CS-ARDL model is employed for analysis during 1998-2021. The findings of the CS-ARDL highlight that financial institutions, financial markets, greenhouse gas emissions, and GDP help promote investments in renewable energy in the long run for all samples, including global, Asian, American, African, and European. However, the estimates of ICT and Trade have insignificant effects on investments in renewable energy. In the short run, most of the factors do not show any significant effect on renewable energy investments. Therefore, policymakers should try to increase the role of financial institutions and markets in promoting renewable by inducing them to ease their policies for grant of loans to invest in renewable energy sources.