4.7 Article

Green financing and resources utilization: A story of N-11 economies in the climate change era

Journal

ECONOMIC ANALYSIS AND POLICY
Volume 78, Issue -, Pages 1174-1184

Publisher

ELSEVIER
DOI: 10.1016/j.eap.2023.05.007

Keywords

Green finance; Natural resource rent; Sustainable environment; Advanced panel estimates; Next 11 countries

Categories

Ask authors/readers for more resources

This research examines the impact of green finance and natural resource rents on environmental sustainability in the Next Eleven (N-11) countries. The findings indicate that green financing contributes to a significant reduction in carbon emissions, while natural resource rents have detrimental effects on environmental sustainability. Therefore, it is recommended to implement green strategies and policies to promote green financing investments and regulate natural resource extraction for achieving environmental sustainability.
Fossil fuel consumption has witnessed a significant surge in recent decades, resulting in the depletion of nonrenewable energy resources and adverse environmental reper-cussions. This scenario necessitates addressing the high-energy demands of developing countries' energy-intensive sectors through an augmentation in renewable energy pro-duction capacity. Accordingly, the primary objective of this research is to scrutinize the influence of green finance and natural resource rents on environmental sustainability within the Next Eleven (N-11) countries from 2001 to 2018. To achieve this aim, the study employs several rigorous econometric techniques. Cross-sectional dependency is assessed using second-generation BP-LM, PS-LM, and Pesaran CD tests, while the unit root is examined using CIPS and CADF tests. Moreover, panel cointegration is assessed employing the Westerlund and Edgerton (2008) cointegration test. The most reliable Cup-FM and Cup-BC panel data estimators are utilized to ascertain long-run parameters precisely. The empirical findings of this research reveal that green financing contributes to a substantial reduction in carbon emissions. In contrast, natural resource rents exhibit detrimental effects on environmental sustainability. Consequently, the study advocates for the implementation of green strategies and policies to bolster green financing investments and regulate natural resource extraction. By doing so, the N-11 countries can work towards accomplishing their environmental sustainability objectives.(c) 2023 Economic Society of Australia, Queensland. Published by Elsevier B.V. All rights reserved.

Authors

I am an author on this paper
Click your name to claim this paper and add it to your profile.

Reviews

Primary Rating

4.7
Not enough ratings

Secondary Ratings

Novelty
-
Significance
-
Scientific rigor
-
Rate this paper

Recommended

No Data Available
No Data Available