Investing for a Greener Future: Asymmetric Nexus between Green Finance and Renewable Energy Technology Innovation

Abstract

Green finance and renewable energy technology innovation play a pivotal role in paving the way towards a low‐carbon economy. They hold immense potential to drive meaningful change and ensure a greener future for generations to come. The present study analyzes an asymmetric connection between green finance and renewable energy technology innovation in the top‐10 green finance promoter economies. Prior research utilized panel data approaches to achieve consistent results about the linkage between the variables. However, this investigation introduces a novel “Quantile‐on‐Quantile” method that provides detailed, country‐specific insights into time‐series dependence. Our findings suggest a positive association between green finance and renewable energy technology innovation in most economies at specific data distribution segments. Moreover, the data highlights that the degree of asymmetries in the relationships between the variables vary among countries, underscoring the significance of policymakers keeping a close eye on changes in green finance and renewable energy technologies.This article is protected by copyright. All rights reserved.