Role of sustainable finance, geopolitical risk and economic growth in renewable energy investment: Empirical evidence from China

Abstract

The global economic recession caused by COVID‐19 has posed a severe threat to the feasibility of renewable energy projects, hampering the United Nation (UN) sustainable development goals. Sustainable financing (SF) is a crucial instrument for promoting investment in renewable energy (IRE) sources, as it is regarded as a crucial aspect in achieving long‐term sustainability. This study sheds insight on the impact of SF, geopolitical risk (GPR), economic growth (EG), and environmental regulation (ER) on IRE sources by evaluating 10 years of data from 35 Chinese energy businesses from 2012 to 2021. The data analysis is done by utilizing quantile regression and dynamic analytic techniques, demonstrating that SF, EG, and ER have a significant positive effect on IRE sources. However, GPR has a significant detrimental impact on IRE in China. This is one of the early studies to examine the crucial role of SF, GPR, EG, and ER in IRE, which is critical for environmental sustainability. In addition, it provides policymakers and environmentalists with crucial insights for developing and executing environmental strategies that can deliver long‐term benefits and meet SD goals.

Modelling the green logistics and financial innovation on carbon neutrality goal, a fresh insight for BRICS‐T

“…Most developed nations are eliminating their non‐renewable sources with innovative financial approaches (Ali et al, 2022). Because of environmental regulations and less competitive pressures in the financial industry, the research revealed that FNI tends to encourage green initiatives (Lin et al, 2022). The present research evaluates, from the standpoint of the BRICS‐T economies, whether FNIs produce favourable or unfavourable (positive or negative) impacts.…”

Achieving environmental sustainability goals through capitalizing on renewable energy channels: Role of green finance, resources productivity and geopolitical situation in the MENA region

“…The distribution of green money has continually exhibited a bias towards investment in wind and biomass energy, offering significant benefits to the RE industry (An et al, 2023). GF aims to alleviate the financial strain of RE generation by offering economic incentives through direct or indirect means (Lin et al, 2022). In their study on China's sustainable growth and production-based CO 2 emissions spanning from 1998 to 2017 (Khan et al, 2020) investigated the influence of green investment.…”

Nexus of geoenvironment, resource management and regional sustainable development: Introduction

“…The first factor to emerge from this special issue was the geopolitical situation which refers to the state of economic, social and political affairs in a particular region (Lin et al, 2023; Wei et al, 2023). According to Lin et al (2023), geopolitical risk (GPR) is a major hurdle in promoting sustainable development projects, green investments and global stability and arises due to the interaction between nations and regions.…”

“…Feng and Fu (2023) The third factor highlighted by this special issue was the region's economic situation, including economic growth, inflation, trade ratio, job and income level and monetary and fiscal policies. Lin et al (2023) linked national economic growth with regional potential to invest in renewable energy sources. They explained that if a region's economy grows, more entities will invest in clean energy projects, which ultimately will help the region mitigate climate change challenges.…”

“…Another element proposed by multiple papers (Belgacem et al, 2023;Lin et al, 2023;Ma, 2023;Najam, 2023;Wei et al, 2023) in this special issue was promotion and capitalization of renewable or clean energy, which comes from resources that can be regenerated naturally and have little to no impact on the natural environment. Belgacem et al (2023) and Ma (2023) highlighted the importance of the transition of clean energy for sustainable development and explained how different factors, such as environmental regulations, stakeholders' awareness, R&D, etc.…”