Does green finance investment and technological innovation improve renewable energy efficiency and sustainable development goals

Sustainable goals are achieved by utilizing private firms' investment in renewable energy sources. Globally, the demand for alternative sources of Renewable Energy (RE) and green finance (GF) has prompted an increase in research on these topics. This research applies a novel technique panel cointegration and causality model to evaluate the causes of green finance development in China between 1990 and 2020. This study adds information on the relationship between green finance and financial inclusion in the form of private firms' investments. The findings show that green finance and financial inclusion (FI) are beneficial to development globally and more granular. For every 1% growth in RE sources, there will be a 0.522% rise in trademark filings and a 0.1243% rise in private sector investment filings. The trademark and patent are promoted by 0.062% when financial inclusion is improved by 0.031%. Investment, commerce, and human progress have a calming effect on the connection discussed above. A variety of robustness tests supports our model results. This study's policy recommendations include decentralizing the energy industry to allow for more private sector participation; financial incentives for enterprises to use RE. It is clear from these findings that our study contributes significantly to the field of empirical research and also gives crucial policy recommendations. (c) 2022 Elsevier Ltd. All rights reserved.

Automated summary

This study evaluates the causes of green finance development in China between 1990 and 2020 using panel cointegration and causality model, and finds that green finance and financial inclusion are beneficial to global and more granular development. The growth of renewable energy sources also leads to an increase in trademark and private sector investment filings.