The impact of green finance, economic growth and energy usage on CO₂ emission in Vietnam – a multivariate time series analysis

Abstract

PurposeThis study aims to examine the relationship between green finance, economic growth, renewable energy consumption (energy efficiency), energy import and CO2 emission in Vietnam using multivariate time series analysis.Design/methodology/approachThe data were collected from 1986 to 2018 since Vietnam initiated the economic reforms, namely “Doi Moi” in 1986. The concept and methods of cointegration, Granger causality and error correction model (ECM) were employed to establish the relationship between the variables of interest.FindingsOur results confirmed the existence of cointegration among the variables. The Granger causality test revealed unidirectional causality running from renewable energy consumption to CO2 emission and green investment to CO2 emission.Originality/valueThis study results confirm the existence of cointegration among the variables. The results of the study imply that policies on economic development impose a significant impact on pollution in Vietnam. This study has described Vietnam, its economic development, green manufacturing practices, its environmental health and level of carbon dioxide emission which was enhanced due to COVID-19.

The green bond market and its use for energy efficiency finance in Africa

“…However, underinvested renewable energy enterprises may not pick up through green financing. It is essential to know that energy efficiency has a direct impact on environmental performance and productivity (Iqbal et al, 2021;Tran, 2021;Awawdeh et al, 2021;Zhang et al, 2021). Sarkar and Singh (2010) argued that financing and implementing energy efficiency projects in developing economies often pose challenges due to inadequate liquidity and the nonavailability of energy-saving technologies.…”

“…Another important stride of green finance is that it improves firms' financial efficiency (Yi et al, 2021). However, Tran (2021) shared different opinions on the nexus and affirmed that green finance or investment is insufficient to reduce CO 2 emissions. Cao et al (2021) also found that digital finance positively affects energy and environmental performance through improvement in technical efficiency, while a significant effect is on scale efficiency.…”

“…It is essential to know that energy efficiency has a direct impact on environmental performance and productivity (Iqbal et al. , 2021; Tran, 2021; Awawdeh et al. , 2021; Zhang et al.…”

“…, 2021). However, Tran (2021) shared different opinions on the nexus and affirmed that green finance or investment is insufficient to reduce CO 2 emissions.…”

Economics of Climate Change: Global Trends, Country Specifics and Digital Perspectives of Climate Action

“…Available papers, including Doni and Johannsdottir (2021), note that in the context of the COVID-19 pandemic and crisis in 2020-2021 the pace of implementation of SDG13 (combating climate change) has slowed down. In particular, this could be due to limited placement opportunities for ESG investments (Gao et al, 2021;Ngo et al, 2021;Tran, 2021).…”