Going away or going green in ASEAN countries: Testing the impact of green financing and energy on environmental sustainability

Abstract

The role of green finance is to develop green industry mechanisms in areas including transportation, building, water preservation, clean energy production, storage, and distribution, which ultimately results in emissions and waste reduction, biodiversity habitat protection, and pollution control. Therefore, recognizing the significance of green finance, this research investigates the asymmetric role of green finance and clean energy in the reduction of carbon emissions along with economic growth, foreign direct investment, and urbanization as control antecedents using the econometric model of “non-linear autoregressive distributed lag (NARDL)” for the period 2000–2020 in ASEAN nations. According to the NARDL outcomes, green finance, and clean energy positive shock enhances the ecological quality and negative shocks harm environmental quality. In addition, economic growth, and urbanization contribute to harmful pollutants. Therefore, the results recommend ASEAN nations’ governments, environmentalists, and policymakers, devise strong financial mechanisms, and develop long-term green investment strategies to attract green finance and investment opportunities to bridge the gap in clean energy.

Do Oil Price, Renewable Energy, and Financial Development Matter for Environmental Quality in Oman? Novel Insights from Augmented ARDL Approach

“…The coefficients of GDP in these models are positive and significant; however, the findings from the employed methods prove that a positive increase in the economic growth rate significantly increases the environmental pollution level. These empirical findings support the findings of [19,27,49], who illustrated that the GDP positively affected the CO2 rates. In addition, the findings from the ARDL method illustrate that the coefficient of NREC is positive and significant.…”

Nexus between Green Investment, Fiscal Policy, Environmental Tax, Energy Price, Natural Resources, and Clean Energy—A Step towards Sustainable Development by Fostering Clean Energy Inclusion

“…Several studies have examined the relationship between green investment and renewable energy consumption. It has been discovered that green finance stimulates a shift in energy consumption from fossil fuels to renewables by encouraging investment in sustainable energy [15,17,19,21,42]. For instance, in the case of China, the study [43] established that FinTech and green finance prompt green economic growth by expediting clean energy in the energy mix.…”

“…Clean energy has emerged as a major force in defining the global landscape, assuming unprecedented significance due to its profound implications for sustainable development, environmental preservation, and energy security [15]. Adopting renewable energy (RE, hereafter) sources, such as solar, wind, hydro, geothermal, and biomass, has become necessary to transition to a low-carbon economy in light of the global challenges posed by climate change and diminishing fossil fuel reserves [1].…”

Can Green Finance Mitigate China’s Carbon Emissions and Air Pollution? An Analysis of Spatial Spillover and Mediation Pathways

“…Considering the economic scale, GF promotes the transition of the economy in a green and low-carbon direction, which has a positive effect on environmental improvement [26]. In contrast, the expansion of the scale of production generated by the development of finance can exacerbate environmental pollution and carbon emissions in some countries and regions [27]. The economic structure is usually studied in terms of both ES and IS.…”

“…Combined with the previous literature review, we selected ES, IS, and technology (T) as mediation variables to explore the mediation pathways of GF in reducing CEI and AP. Additionally, some studies have shown that urbanization (U) [27], foreign direct investment (FDI) [40], global openness (OP) [41], market maturity (MAR) [42], and level of economic development (PGDP) [43] affect CEI and AP. We also controlled these variables to ensure the reliability of the research results.…”