The role of green finance and energy innovation in neutralizing environmental pollution: Empirical evidence from the MINT economies

Catch-up growth with alpha and beta decoupling and their relationships between CO2 emissions by GDP, population, energy production, and consumption

This study explores the relationship between CO2 emissions by GDP, population, energy production, and consumption in the United States, China, Romania, and Thailand economies from 1990 to 2019. It evaluates the phenomenon of catch-up growth, which transpires when an lagging economy goes through an expansionary phase after a period of below-average performance. We used the stochastic model to illustrate in terms of alpha and beta decoupling techniques. The outcomes validated by positive and negative decoupling attitudes play a crucial role in predicting a rise in CO2 emissions owing to oil, gas, and coal use in comparison to Romania. Thailand and Romania have a more viable road to sustainability than the United States and China. The United States and China appear to have an antagonistic relationship, as suggested by decoupling attitudes. Thailand and Romania are considered to be highly environmentally sustainable countries on account of their minimal carbon emissions, efficient energy usage, and forward-thinking environmental policies. Accordingly, policy recommendations are offered based on CO2 emissions and effective mitigation policies, since this allows for determining which countries with high emissions need technological advances, best practices, and intersectoral policies.

The role of financial innovation in carbon intensity reduction: perspectives from energy structure transition and fiscal policies

Carbon emissions are important factors causing global warming, which requires global efforts to deal with. In this paper, we investigate the mechanism of financial innovation on reducing carbon emissions in China by constructing a financial innovation development index with factors of green finance as well as fintech development. Empirical results show that financial innovation contributes to reduce carbon intensity by promoting energy structure transition as well as public fiscal expenditure on energy conservation and environmental protection. Moreover, heterogeneity exists in the effect of financial innovation on carbon emission reduction. Financial innovation has a significant role in reducing carbon intensity in eastern regions, but has a relatively small influence on central and western regions. Furthermore, financial innovation has a lag effect on reducing carbon intensity.

Corporate political acuity and carbon - efficiency synergies

RESEARCH QUESTION

In the context of global low-carbon emission reduction, how to achieve green and high-quality development has become a major issue for the Communist Party of China (CPC) and the Chinese government recently. Based on the data of China's listed companies from 2013 to 2020, this paper uses Python to implement text analysis of annual reports, and explores the relationship between political acuity and carbon-efficiency synergies (CES) from the perspective of enterprise initiative.

RESEARCH FINDINGS

We found that (1) political acuity positively affects carbon-efficiency synergies. (2) Increased political acuity can reduce carbon emissions, but the effect on economic efficiency is not obvious. That is, low carbon takes the lead in raising the level of carbon-efficiency synergies. (3) Environmental regulations can positively regulate the relationship between political acuity and carbon-efficiency synergies. (4) Political acuity in southern China, carbon neutral and non-state-owned enterprises (NSOEs) will have a more pronounced effect on carbon-efficiency synergies.

ACADEMIC IMPLICATIONS

From the perspective of the root causes of political linkages, we find the synergies between formal and informal institutions, and the key factors for policy implementation.

POLICY IMPLICATIONS

This paper is helpful for enterprises to improve the synergies of emission reduction and efficiency promotion, and has practical implications for the government to promote green and high-quality development.

The impact of green credit on environmental quality: empirical evidence from China

As an innovative financial instrument, green credit is a new driving force for environmental governance. To study the impact of green credit on environmental quality, this paper uses the provincial panel data from 2007 to 2020 to construct a panel model for analysis based on the comprehensive environmental quality index. At the same time, it discusses the mechanism and regional heterogeneity of green credit affecting environmental quality. The results show that green credit significantly improves the overall quality of the environment, which has a significant effect on air quality and green quality but has no significant impact on water quality and soil quality. Green credit improves environmental quality by improving green technology innovation and promoting industrial structure upgrading. At the same time, there is obvious heterogeneity in the environmental effect of green credit. Among them, the environmental quality improvement effect of the eastern region and the carbon emission pilot area is more evident than that of the central and western regions and the non-carbon emission pilot area. This paper has important implications for promoting the development of green credit and giving full play to the environmental effects of green credit to achieve sustainable goals.

Trade openness, human capital, natural resource, and carbon emission nexus: a CS-ARDL assessment for Central Asian economies

There is a call for global efforts to preserve the ecological systems that can sustain economies and people's lives. However, carbon emission (CEM) threatens the sustainability of humanity and ecological systems. This analysis looked into the influence of energy use (ERU), human capital (HCI), trade openness (TOP), natural resource (NRR), population, and economic growth (ENG) on CEM. The paper gathered panel data from the Central Asia region from 1990 to 2020. The CS-ARDL was applied to establish the long-term interaction among the indicators. The paper's findings indicated the presence of the environmental Kuznets curve (EKC) in the Central Asia regions. Also, the empirical evidence highlighted that energy use, natural resources, and trade openness cause higher levels of CEM. However, the research verified that CEM can be improved through human capital and urban population growth. The study also found that HCI moderates the interaction between NRR and CEM. The causality assessment indicated a one-way interplay between ENG, ERU, NRR, and CEM. The study proposes that to support ecological stability in these regions, policy-makers should concentrate on developing human capital, investing in renewable energy sources, and utilizing contemporary technologies to harness natural resources in the economies of Central Asia.

Leveraging green finance and technological innovations for sustainable urban development: A comparative study of Chinese mega-cities

Being worlds' largest population, China is the biggest consumer of natural resources and causes the highest Carbon emissions due to its energy needs for economic development. This research aims to analyze the relationship between green finance, natural resources, carbon releases, and foreign direct investment on China's efforts towards durable economic sustainability. Difference-in-Difference frameworks are utilized to analyze the statistics acquired from 270 Chinese cities between 2002 and 2022. The findings indicate that the financial implications of carbon emissions significantly affect China's sustainable green economy. However, the short-term growth of the green economy is enhanced by the use of natural resources and the advancement of green financial markets. The results of this study provide empirical evidence that supports the theory positing a linear association among carbon releases, economic expansion, and natural resources. This study provides guidance to policymakers to make policies for enhanced and efficient use of natural resources. This may potentially contribute to the promotion of long-term sustainability in China and the facilitation of green growth.

Research on the interplay between green finance and manufacturing sustainability outcomes: insights for low-carbon economy in the post-COVID-19 era

In the quest to strengthen resilient and sustainable recovery in the post-COVID-19 era, there is a huge requirement for manufacturing firms to adopt green finance which is dominated by green bond issuance. Nevertheless, published studies that provide insights on factors that influence the issuance of green bonds within manufacturing firms in the post-COVID-19 era and the impact on sustainable outcomes are currently non-existent. Therefore, this study analyzed the interrelationships that exist between the influencing factors of green bond issuance within manufacturing firms using decision-making trial and evaluation laboratory (DEMATEL) and data from Nigerian manufacturing firms. Then, a structural model of their importance levels was illustrated using interpretive structural modeling (ISM) while their impact on manufacturing sustainability outcomes was estimated with the aid of evaluation based on distance from average solution (EDAS). The study results highlight the key influencing factors of green bond issuance as environmental competencies, policy framing, low corruption, public awareness, and government support thereby signifying the criticality of strong institutions in facilitating green finance in the post-pandemic era. Besides, the study results demonstrate that green finance can significantly strengthen manufacturing sustainability in the post-COVID-19 era via green bonds by enhancing sustainable waste management, technological growth, and quality improvement as well as reducing carbon emissions. The study findings can provide a reference to decision-makers in manufacturing enterprises to predict scenarios and enact policies that facilitate the success of green finance in the post-COVID-19 era to further develop a low-carbon economy and increase competitive edge.

Does green finance reduce environmental pollution?-a study based on China's provincial panel data

As a bridge between economy and ecology, green finance is vital in improving environmental quality and promoting sustainable development. Based on the building of an environmental pollution index system, this paper constructs the [Formula: see text] model to deeply explore the specific impact of green finance on environmental pollution using China's provincial panel data from 2007 to 2020. This paper constructs an intermediary model to test the impact mechanism of green finance on reducing environmental pollution and discusses the regional heterogeneity of green finance in reducing environmental pollution. The results show that (1) green finance can significantly reduce environmental pollution, among which green credit has a pronounced effect on reducing environmental pollution, green investment has a relatively small effect, and green securities have not significant effect. (2) Green finance has the best inhibitory effect on solid pollution, less inhibitory effect on air pollution, and no significant improvement effect on water pollution. (3) Green technology innovation, industrial structure upgrading, and environmental regulation play an intermediary role in the process of green finance reducing environmental pollution and improving environmental quality. (4) The effect of green finance in the eastern and carbon emission pilot areas is significantly better than in the central and western regions and non-carbon emission pilot areas respectively. According to the research results of this paper, suggestions are put forward to promote the development of green finance, which is of great significance to reducing environmental pollution and achieving sustainable development goals.

Unveiling the relationship of ESG, fintech, green finance, innovation and sustainability: case of Gulf countries

Technological advancement and innovations not only transformed businesses but also optimize numerous functional areas of financial services. Besides, green finance and fintech are also essential tools to achieve sustainable development agendas. Thus, it is imperative to document the evidence that how conducive such factors are to achieve 2030 sustainable development goals. The study, in this regard, is aimed to scrutinize innovation, green finance, financial technologies, and ESG factors altogether in order to determine their effectiveness on sustainable development in Gulf countries in the time span of 2000-2020. The study opts for methods of moments quantile regression (MMQR) and claim that green finance, green innovation, and fintech helps in achieving sustainable development goals. However, among ESG factors, social and governance role is negative in the sampled economies. Findings are interesting for policy makers and government institutions because it assists them to improve governance evaluation system and classification standards so that countries may no longer experience hindrance when indulging in sustainable development actions.

Renewable energy, technological innovation, carbon emission, and life expectancy nexus: experience from the NAFTA economies

One essential component that reflects the development of society and the economy of most countries is life expectancy (LEXP). Nevertheless, LEXP can be influenced by varying factors, including socioeconomic and medical factors. Therefore, this analysis's focal point and motivation is to explore how socioeconomic factors such as economic growth, technological innovation, carbon emission, human capital, and renewable energy affect LEXP. The study utilized panel data from 1990 to 2020 from the North American Free Trade Agreement (NAFTA), which consists of the USA, Mexico, and Canada. The initial test confirmed that the research series were stationary and cointegrated. Therefore, the research applied the cross-sectional autoregressive distributed lag (CS-ARDL) model to predict the paper's short- and long-term estimates. The empirical estimated model concluded that human capital, renewable energy, technological innovation, and economic growth boost life expectancy. Contrarily, the outcome espoused that carbon emission has an inverse association with LEXP. The causality test confirmed a unidirectional interaction between human capital, economic growth, technological innovation, and life expectancy. On the other hand, there is a bidirectional connection between carbon emission, renewable energy, and life expectancy. The research suggests that stakeholders and policy-makers strengthen and enforce air quality standards to reduce pollution from industrial emissions and vehicle exhaust and encourage using cleaner technologies to promote LEXP. The research outcome is empirically and theoretically consistent, providing an essential breakthrough for environment-health-energy and economic development policies.

Does green innovation promote environmental efficiency from a global perspective? A hybrid approach (fuzzy DEA-SEM-ANN)

Green innovation is crucial for reducing carbon dioxide (CO2) emissions and promoting environmental efficiency worldwide. However, there is a lack of scholarly research investigating the relationship between environmentally friendly innovations and improved environmental performance. To fill this knowledge gap, a comprehensive study was conducted using data from 64 countries spanning 2010 to 2018. The study employed a hybrid approach, combining fuzzy DEA, structural equation modeling (SEM), and artificial neural networks (ANN) to analyze the nexus between green innovation and environmental efficiency. The SEM analysis revealed that green innovation, green trade, green employment, and green investment significantly impact environmental efficiency. The ANN model achieves a perfect prediction rate for environmental efficiency and green growth, emphasizing the importance of incorporating various sources of green innovation to achieve long-term environmental goals. The study's findings have significant implications for policymakers and governments, highlighting the value of environmentally friendly technologies and the need to allocate resources toward their development. Regional collaboration and integrating green innovation throughout the development process are essential for achieving environmental efficiency. By embracing green innovation, nations can capitalize on its potential benefits while mitigating pollution and promoting sustainable development. Overall, this research serves as a cornerstone for decision-makers, providing insights into the importance of green innovation and guiding efforts to foster environmentally conscious technologies globally.

Incentive or constraint? Comprehensive impacts of green credit policy on industrial energy intensity

Green credit policy (GCP) has dual attributes of being both an "environmental regulation" and a "financial instrument". Understanding its role in facilitating industrial green transformation is crucial. However, there is limited theoretical and empirical evidence on the impact of GCP on industrial green transformation. This research fills this gap by comprehensively investigating the impacts and mechanisms of GCP on industrial energy intensity (EI) in China, considering both incentive and constraint effects. Theoretically, the environmental and financial impacts of GCP are merged into a unified analytical framework based on a heterogeneous enterprise model. Empirically, diverse empirical methods, including difference-in-differences (DID), difference-in-differences-in-differences (DDD), and mediating effects models, are adopted to examine whether GCP can promote green innovation or accelerate financial constraints. Results show that (1) GCP significantly decreases EI, especially among high-polluting enterprises (HPEs). The impact of incentives is far greater than that of constraints. (2) Regarding the incentive effect, energy substitution and innovation offsets exert a primary influence on reducing EI. (3) The constraint effect is caused primarily by rising financing and pollution abatement costs. (4) Heterogeneity analysis shows that the inhibiting effect of GCP is more significant in non-state-owned enterprises, underdeveloped financial markets, and abundant energy endowments. This paper provides a theoretical framework and new empirical evidence for policymakers to design effective policies for promoting industrial green transformation.

Green finance drives renewable energy development: empirical evidence from 53 countries worldwide

Green finance is profoundly affecting the energy transition, and at the global level, renewable energy has entered a leapfrog development phase. Unlike the research object that existing studies focus on, this paper selects 53 countries and regions that have launched green finance businesses as research sample, and empirically assesses the effect of green finance on the development of renewable energy based on cross-country panel data spanning 2000 to 2021. The results show that renewable energy development is positively impacted by green finance, and the marginal impact of green finance is gradually growing as renewable energy development level improves; the contribution of green finance to renewable energy development holds only in developed countries, emerging economies, countries with high green financial development levels, and countries with strong environmental regulations, but not in relatively backward developing countries, countries with low green financial development levels, and countries with weak environmental regulations; sectors of renewable energy that rely more heavily on external financing are more likely to be promoted by green finance; green finance supports renewable energy development mainly through promoting investment in renewable energy fixed assets and innovation in technology of the sector. This study provides an empirical and theoretical basis for green finance to promote renewable energy development.

Green finance, the low-carbon energy transition, and environmental pollution: evidence from China

With 2008-2020 China's provincial panel data as the research object, we use the entropy weight method to compute green finance and pollution, and we empirically study the scope of the spillover effects and threshold impacts of green finance on environmental pollution using the spatial Durbin model and threshold regression model. The findings are as follows: first, under different spatial weight matrices, green finance has a spatial spillover effect on pollution. And the effect boundary is approximately 500 km. Second, with the low-carbon energy transition, technological progress, and green finance as threshold variables, there are a single threshold, single threshold, and double threshold, respectively, that have significant threshold effects. Third, the spillover and threshold effects of green finance on pollution differ by region. The indirect effect is negative in the eastern region and positive in the central and western regions. There is a single threshold effect of low-carbon energy transition and green finance in the western region, a single threshold effect of green finance in the central region, and a single threshold effect of technological progress in the eastern region. On this basis, we put forward. specific policy recommendations.

The influence of green finance availability to retailers on purchase intention: a consumer perspective with the moderating role of consciousness

As the global warming crisis is increasing daily, it is crucial to find ways to reduce the carbon footprint generated by activities like the production, consumption, and distribution of goods and services. This empirical study has looked at one approach through which environment-friendly production and consumption can be encouraged. The developed model has studied the relationship between retailers' access to green finance and consumer purchase intention of green products by incorporating the role of environmental, status, and future consciousness. Theoretical foundations for this model have been taken from the theory of planned behaviour (TPB) and theory of reasoned action (TRA), which have extensively discussed the role of consciousness and societal norms while making purchase intentions. To gain insights about the purchasing behaviour of consumers, this study collected data from the Jiangsu province of China, where a non-probability convenience sampling technique was used to distribute a questionnaire to 400 respondents between February 2022 and August 2022. The collected data was analysed using Structural Equation Modeling (SEM) in SmartPLS in order to study the relationship between independent and dependent variables. Results of this study show that retailers' access to green finance positively impacts consumer purchase intention towards green products, and adding a consciousness perspective in the model strengthens this relationship. Moreover, the theory of planned behaviour and the theory of reasoned action were validated through this study, providing insights for policymakers on the importance of promoting green finance to influence green product purchase intention. Overall, this study shows that policymakers should give green financing to retailers and environmental and future awareness to consumers to encourage environment-friendly behaviour.

Towards environmental degradation mitigation: The role of regulatory quality, technological innovation and government effectiveness in the CEMAC countries

The study explores the interaction between regulatory quality, economic growth, technological innovation, energy consumption, government spending on research and development, and environmental degradation (EVD) in the Economic and Monetary Community of Central Africa (CEMAC) region. The study applied the econometric approach CS-ARDL to estimate the short and long-term interaction between the regressors and the explanatory variable. The study period covers from 1990 to 2020. To summarize the findings of this research, (1) the study discovered a positive relationship between energy consumption, government effectiveness, regulatory quality, and environmental degradation. (2) Economic growth, government spending on research and development, and technological innovation, on the other hand, extensively dissipates EVD in the CEMAC economies. (3) The causality analysis espoused a bidirectional connection between energy consumption, technological innovation, and EVD. (4) Lastly, a unidirectional interplay exists between economic growth, government effectiveness, regulatory quality, and EVD. This study also serves as a reference point for policymakers and governmental institutions to invest in cleaner technologies and increase government research and development spending to mitigate environmental degradation in these areas.

Exploring the nexus link of environmental technology innovation, urbanization, financial development, and energy consumption on environmental pollution: Evidence from 27 emerging economies

The core intent of the present study seeks to probe the connection linking environmental technology innovation (ENVTI), economic growth (ECG), financial development (FID), trade openness (TROP), urbanization (URB) and energy consumption (ENC) on environmental pollution (ENVP) by employing 27 chosen African economies panel data. These variables merit critical attention when implementing decarbonization policies and significantly safeguarding a country's well-being in pursuit of massive industrialization and economic expansion. The fully modified ordinary least squares (FMOLS), the dynamic ordinary least square (DOLS), and the pooled mean group (PMG) estimation techniques were utilized to analyze the series from 2000 through 2020. This research used the FMOLS for long-run connections interaction of the variables, while the DOLS and PMG were used for robustness checks. Further, the Pedroni, Kao, and Westerlund cointegration approaches were employed to determine cointegration in the series. Also, the cross-sectional Im, Pesaran, and Shin (CIPS) and the cross-sectional augmented Dickey-Fuller (CADF) unit root testing approaches were utilized to check the stationarity of the series. Again, the stochastic impact on regression, population, affluence, and technology (STIRPAT) model, and the environmental Kuznets curve (EKC) was used as the theoretical framework supporting this research. The findings of the long-run analysis give credence to the EKC assumption demonstrating that a significant long-term ECG will support the decrease in ENVP when nations experience increases in the level of income. Further, this study found that ENVTI and URB are conducive to reducing ENVP in the long run. The current research finding is sensitive to the respective nations' income levels. This empirical research furnishes prudent policies tailored for the respective countries' pursuit of ECG and reducing ENVP.

How does environmental regulation influence green technological innovation? Moderating effect of green finance

The main factor behind green economic development is green technology innovation (GTI). Environmental regulation and green finance (GF), as important ways to promote ecological civilization construction, run through the entire procedure of GTI. The purpose of this study is to investigate the influence of heterogeneous environmental regulation on GTI and the moderating effect of GF on GTI from both theoretical and empirical perspectives, to provide useful ideas for China's economic reform path selection and environmental governance system optimization. This paper uses information from 30 provinces between 2002 and 2019, and a bidirectional fixed model was constructed. The results show that: First, regulatory environmental regulation (ER₁), legal environmental regulation (ER₂), and economic environmental regulation (ER₃) all have greatly boosted the degree of GTI in each province. Second, GF acts as a highly effective moderator between heterogeneous environmental regulation and GTI. Finally, this article investigates how GF can act as a moderator in various circumstances. The beneficial moderating effect of it is found to be more pronounced in inland areas, areas with weak spending on research and development, and areas with high energy consumption. These research results provide valuable references for accelerating the green development process in China.

Financial reform and haze pollution: A quasi-natural experiment of the financial reform pilot zones in China

Financial reform becomes a new tool for environmental governance because it can indirectly affect the environment by promoting economic and financial agglomeration and technological innovation. Despite China's aggressive financial reform pilot (FRP) policy since 2012, little is known about whether and how such policy affects haze pollution (HP). We exploit geographic and temporal variations in China's FRP policy and compile a dataset covering 284 cities over the period from 2003 to 2019. Employing a difference-in-differences (DID) approach, we document that China's FRP policy has a negative causal effect on HP in the pilot cities. The estimates obtained from an instrumental variable constructed by religious temples also support the haze-abatement effect of such policy. This effect is largely driven by advances in technological innovation and increases in economic agglomeration, while financial agglomeration is proven to have little effect. Finally, our estimate is particularly pronounced in cities with high levels of economic development, financial development and technological innovation, and that in large-sized and non-mineral resourced cities. Overall, our findings shed light on the importance of financial reform in environmental governance in a developing country.

Comparing the impacts of carbon tax and carbon emission trading, which regulation is more effective?

While many literatures have examined the influence of environmental regulation policy, which environmental regulation policy is more effective is still controversial. Taking China and two different economic regions as samples, we explore the effect of two popular environmental regulation policies, that is carbon tax and carbon emission trading, by a multi-regional environmental dynamic computable general equilibrium model. The results show that for the economic development, the carbon emission trading outperforms the carbon tax for the carbon emission trading will generate the lower economic cost. But for the emission reductions, the carbon tax outperforms the carbon emission trading for the total emissions from 2020 to 2030 are smallest when introducing carbon tax policy. We further study the effect of environmental regulation on different industries. It is found that the environmental regulation has a more obvious effect on energy industry, heavy industry and transport service industry.

The coordination of collective and individual solutions in risk-resistant scenarios

ABSTRACT

Human societies are constantly coping with global risks. In the face of these risks, people typically have two options, that is, to respond together as a whole (collective solution) or to respond independently (individual solution). Based on these two solutions, individuals have a variety of behavioral strategies. On the other hand, various regulatory bodies supported by the population limit people's choices and punish individuals who do not contribute to collective solutions. So with different risks, how do the two solutions, the various individual strategies, and the constraints from regulators affect the group's response to risk? This paper proposes an extended public goods game model involving opportunists and the regulator to explore the effectiveness of collective and individual solutions against risks. The results show that requiring individuals to invest more in the collective solution reduces the group' s success in resisting risk. To improve the group's ability to resist risk, investment in individual solution should be at least no less than that in collective solution. The establishment fund and punishment intensity of the regulatory agency have no significant effect on the success of collective and individual solutions. This inspires us to contemplate the role and measures of various types of authorities in coping with global risks.

The causal relationship between green finance and geopolitical risk: Implications for environmental management

This study investigates the time-varying causal relationship between geopolitical risk and green finance during the period of 1 March 2012-February 16, 2022. By using the novel time-varying causality testing framework, our findings shed light on the nexus between geopolitical risk and green finance in informing environmental management decisions. First, we find that time heterogeneity does exist in the causal relations between geopolitical risk and green finance. Second, geopolitical risk has a more prolonged impact on the volatility of green bonds and renewable energy than the return. Yet, geopolitical risk tends to influence the return of clean energy more persistently than volatility. Third, we observe that geopolitical risk has a more sustained impact on the return and volatility of renewable energy than clean energy. This might be due to the distinct nature of the production of clean energy and renewable energy, thereby providing implications for effective environmental management. Lastly, this paper demonstrates that the impact of geopolitical risk on the return of European clean energy has diminished since the onset of 2015. The volatility of the European clean energy sector is not affected by global geopolitical risk, underscoring the necessity of promoting the development of this sector to reduce the dependence on fossil fuels and enhance energy independence.

Sustainable finance and renewable energy: Promoters of carbon neutrality in the United States

This investigation explores whether sustainable finance and renewable energy could facilitate U.S. carbon neutrality. We perform the time-varying parameter-stochastic volatility-vector auto-regression (TVP-SV-VAR) model to obtain the changing relations among U.S. sustainable finance (SF), renewable energy (RE) and carbon dioxide emission (CO2). The empirical outcomes reveal a short-term negative effect from RE to CO2, indicating that renewable energy consumption could promote U.S. carbon neutrality. This effect is asymmetrical, and it could be observed that RE increase has a greater effect on CO2 than RE reduction. Also, the development of sustainable finance could facilitate U.S. carbon neutrality, and the direct impact is longer and more significant than RE, but the indirect effect of SF on CO2 by influencing RE is hysteretic. Besides, the asymmetric effect reveals that the negative direct impact of SF increase on CO2 is smaller than SF reduction, and the latter's indirect effect is more rapid than the former. Against the backdrop of global warming and frequent extreme weather, the above conclusions have meaningful practical applications for the U.S. to achieve carbon neutrality targets through developing sustainable finance and renewable energy.

Assessing environmental concern and its association with carbon trade balances in N11 Do financial development and urban growth matter?

Expanding of complex global supply chains enhances the role of global trade in the deterioration of the environment by production redeployment across nations, which is tightly connected to emission transmission or the carbon trade balance. Although much earlier studies have assessed the link between emissions of carbon dioxide (CO₂) and their influenced variables in the past few years, no substantial attention is available in the literature review concerning the influence of carbon trade balance on the environment in N11 economies. Therefore, via economic progress, renewable/fossil energies consumption, financial development, and urbanization growth as control variables, the influence of the carbon trade balance on emissions of CO₂ in N11 countries is explored from 1990 to 2020. The Co-integration and causality relationships using Panel PMG ARDL and Granger causality techniques are investigated to reach our goal. All of the variables investigated degrade the environment in the long run, whereas renewables alleviate CO₂. As a result, carbon emission countries' regulators should step up their efforts to support green energy subsidies and carbon taxes, as well as, when supply chains outsource emission-intensive production units to partner nations, they should encourage positive externalities of innovative green technologies.