Decoupling the role of renewable energy, green finance and political stability in achieving the sustainable development goal 13: Empirical insight from emerging economies

Abstract

The quest for attaining ‘sustainable development goals (SDGs)’, especially ‘SDG‐13’, which addresses the policy towards lessening the risk of climate change, is impossible without abating CO2 emissions, which are a major contributor to climate change globally. Thus, this study inspects the decisive role played by renewable energy use, green finance, and political stability in achieving SDG‐13 by abating CO2 emissions for 14 emerging economies from 1990 to 2021. We have used the cross‐sectional autoregressive distributed lag and method of moments quantile regression estimators to analyse the impact of explanatory variables on the dependent variable, considering the probable endogeneity issue in the model. The outcome of the study signifies that renewable energy consumption and green finance substantially reduce CO2 emissions, whereas political stability is observed to have a positive impact on CO2 emissions. Moreover, the moderation effect of political stability and green finance is found to substantially reducing carbon emissions. This study thus suggests that emerging economies need a stronger political system to promote green financing and renewable energy consumption to attain SDGs by addressing climate change policy.

Towards energy sustainability: Exploring the nexus between global value chain participation and energy security in developing and developed countries

“…There is a lower likelihood of unexpected changes in policy that could disrupt energy supplies in politically stable countries because of the greater consistency with which energy policies are established and implemented [ 63 ]. In addition, political stability encourages both local and international investments in energy infrastructure [ 64 ], which in turn increases the reliability and diversity of energy sources. On the other hand, political instability may hinder energy production, distribution, and transportation as a result of conflicts, protests, or regime transitions [ 65 , 66 ].…”

Do green finance, green technology innovation, and institutional quality help achieve environmental sustainability? Evidence from the developing economies

“…Similarly, Sahoo et al (2023) highlighted the influential role of green innovations in abating carbon emissions and attaining green growth for developing countries. Green technology innovation helps industries in cleaner production, waste management, and energy conservation, leading to economic growth while combating the detrimental effects of rising emissions levels (Behera, Behera, & Sethi, 2024; Shao et al, 2021). Likewise, Destek and Manga (2021) examined the effects of technological innovation on the quality of the environment in emerging economies from 1995 to 2016.…”

“…Finally, this study assesses the moderating impacts by including the interaction terms, that is, green finance with green technology innovation and institutional quality with green finance, in limiting CO 2 emissions. Strong institutional quality helps in the effective mobilization of resources for various development activities, especially the implementation of effective environmental laws, such as “feed‐in tariffs and tax benefits,” which helps in attracting financial investments for green energy projects to promote a sustainable environment (Behera, Behera, & Sethi, 2024). On the other hand, green finance augments innovations and aids the increase in the share of clean energy in the energy mix, which provides clean, safe, affordable, and reliable energy to enrich the environmental quality (Dong et al, 2020).…”

Assessment of the coupling coordination relationship between the green financial system and the sustainable development system across China

“…A growing body of research has explored the relationship between green finance and SDGs, mainly focusing on the following aspects: (1) the relationship between green finance and individual sub-goals, including poverty, infrastructure, energy security, environmental protection, agricultural development, education, and economic development, among others 11 – 21 . (2) The impact of green finance on SDGs, including its effects on environmental sustainability, energy sustainability, agricultural sustainability, education sustainability, economic sustainability and other Sustainable Development Goals 2 , 13 , 21 , 22 . (3) The indirect channels through which green finance affects the SDGs.…”