Is green finance really “green”? Examining the long-run relationship between green finance, renewable energy and environmental performance in developing countries

Bakry, Walid; Mallik, Girijasankar; Nghiem, Xuan-Hoa; Sinha, Avik; Vo, Xuan Vinh

doi:10.1016/j.renene.2023.03.020

Cited by 91 publications

(26 citation statements)

References 149 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…6. The dampening effects of green finance and the Russia–Ukrainian war on CO2 emissions have been confirmed by Bakry et al . (2023a) for developing countries and Cui et al .…”

Section: Notesmentioning

confidence: 59%

“…https://www.itu.int/net4/ITU-D/idi/2017/index.html 5. For a review of additional benefits of renewable energy, see Bakry et al (2023a).…”

Section: Limitation and Future Studiesmentioning

confidence: 99%

“…6. The dampening effects of green finance and the Russia-Ukrainian war on CO2 emissions have been confirmed by Bakry et al (2023a) for developing countries and Cui et al (2023) for several countries only. However, there has been no study on the impact of green finance and other unexpected events on CO2 emissions in the OECD.…”

mentioning

confidence: 92%

See 2 more Smart Citations

Does technological progress make OECD countries greener? New evidence from panel CS-ARDL

Nghiem

Bakry

Al‐Malkawi

et al. 2023

MEQ

Self Cite

View full text Add to dashboard Cite

PurposeThis paper aims to examine the impact of information and telecommunication technologies (ICT-proxied by mobile phone subscription and Internet usage) on carbon dioxide (CO2) emissions in the Organization for Economic Cooperation and Development (OECD) countries from 1990 to 2018.Design/methodology/approachThe Cross-section Autoregressive Distributed Lag (CS-ARDL) model is employed to address the potential cross-section dependence problem. Common Correlated Effects Mean Group (CCEMG) and Augmented Mean Group (AMG) estimators are used to test for robustness of results.FindingsResults reveal contrasting effects of mobile phone subscription and Internet usage on CO2 emissions. While mobile phone penetration helps mitigate CO2 emissions, Internet usage tends to increase the emissions. Findings show that renewable energy is beneficial to the environment while economic growth is harmful to the environment. The effects of financial development and trade openness seem negligible.Practical implicationsThis study offers practical implications for policymakers. As different proxies of ICT could have contradictory impact on CO2, governments should be cautious against utilizing ICT to mitigate CO2. Findings point to the benefits of renewable energy in alleviating CO2 emissions. Therefore, governments are strongly advised to implement policies facilitating renewable energy consumption.Originality/valuePrevious studies ignored the problem of cross-section dependence which could lead to biased results and cause misleading inferences. This study aims to fill this void in the literature.

show abstract

“…6. The dampening effects of green finance and the Russia–Ukrainian war on CO2 emissions have been confirmed by Bakry et al . (2023a) for developing countries and Cui et al .…”

Section: Notesmentioning

confidence: 59%

“…https://www.itu.int/net4/ITU-D/idi/2017/index.html 5. For a review of additional benefits of renewable energy, see Bakry et al (2023a).…”

Section: Limitation and Future Studiesmentioning

confidence: 99%

See 1 more Smart Citation

Does technological progress make OECD countries greener? New evidence from panel CS-ARDL

Nghiem

Bakry

Al‐Malkawi

et al. 2023

MEQ

Self Cite

View full text Add to dashboard Cite

show abstract

“…Abdul et al (2022) suggested that RENC is required to safeguard China's energy independence. In recent studies, Apergis et al (2023) for Uzbekistan, Bakry et al (2023) for 76 developing countries, Balsalobre‐Lorente et al (2023) for BRICS, Raihan (2023) for the Philippines and Raihan and Tuspekova (2023) for New Zealand, confirmed a negative relationship. Wu et al (2023) found an adverse link for Nordic countries, except for Iceland, where a positive relationship was ascertained.…”

Section: Literature Reviewmentioning

confidence: 90%

Modelling the connection between energy intensity, renewable energy, globalization, technological innovation and CO₂ emissions: A Quantile–on–Quantile technique

Somoye,

Seraj,

Ozdeser

et al. 2024

Geological Journal

View full text Add to dashboard Cite

As Nigeria progresses towards reaching net‐zero emissions by 2060, it is crucial to identify the factors responsible for environmental deterioration and those that enhance ecological well‐being. It is equally significant to emphasize that Nigeria's economy is heavily dependent on fossil fuels, which have proven unsustainable and environmentally unsafe. As a result, this research investigates the impact of energy intensity (EINT), renewable energy consumption (RENC), globalization (GLOX), technological innovation (TINV) and carbon dioxide emissions (CO2) in Nigeria from 1990Q1–2019Q4. The methods employed include Quantile–on–Quantile (QQ) and non–parametric causality. The QQ method reveals that EINT has both positive and negative impacts on CO2, varying in magnitude from 3 to −5. Higher quantiles of RENC tend to influence CO2 positively, whereas the lower quantile has a negative impact. Negative shocks of GLOX on CO2 have less impact, with a maximum magnitude of −1 at the upper quantile of CO2. In contrast, the positive shocks seem to have a stronger impact and vary in magnitude. TINV has negative shocks across all quantiles. In addition, a significant causality is observed in the upper, middle and lower quantiles. This study suggests that policymakers should implement policies encouraging investments in renewable energy and green technologies.

show abstract

“…Finally, corporate environmental responsibility is a means to gain legitimacy, which can enhance the efficiency and quality of transactions (Sadiq et al, 2010). In particular, significant pollution incidents can directly impact the borrowing costs of a company (Huang & Li, 2017; Bakry et al, 2023). The legitimacy theory suggests two approaches to improving environmental performance: substantive and symbolic (Truong et al, 2021).…”

Section: Related Literature and Hypotheses Developmentmentioning

confidence: 99%

Facilitate or Inhibit: Corporate Environmental Performance and Financing Costs

et al. 2023

View full text Add to dashboard Cite

The proposed carbon peak and carbon neutralization goals have ushered China into an era of emissions reduction and a climate-oriented economy. With the proposed double carbon goal, China has formulated many environmental protection and green credit policies. This paper aims to assess the impact of corporate environmental performance (CEP) on financing costs, using a panel dataset of companies in China’s heavily polluting industries from 2010 to 2019. We employed fixed-effect models, moderating-effect models, and panel quantile regression (PQR) to analyze the impact, underlying mechanisms, and asymmetric features of CEP on financing costs. Our results indicate that CEP has an inhibitory effect on financing costs, with political connections strengthening this effect and GEA weakening it. Moreover, the impact exhibits asymmetry at different levels of financing costs, wherein lower financing costs see a greater weakening effect from CEP. Improved CEP helps to optimize the financing performance of companies and reduce financing costs. Therefore, policy makers and regulatory authorities should work to unblock financing channels for companies, encourage environmental investment, and remain flexible in implementing environmental policies.

show abstract

Is green finance really “green”? Examining the long-run relationship between green finance, renewable energy and environmental performance in developing countries

Cited by 91 publications

References 149 publications

Does technological progress make OECD countries greener? New evidence from panel CS-ARDL

Does technological progress make OECD countries greener? New evidence from panel CS-ARDL

Modelling the connection between energy intensity, renewable energy, globalization, technological innovation and CO₂ emissions: A Quantile–on–Quantile technique

Facilitate or Inhibit: Corporate Environmental Performance and Financing Costs

Contact Info

Product

Resources

About

Is green finance really “green”? Examining the long-run relationship between green finance, renewable energy and environmental performance in developing countries

Cited by 91 publications

References 149 publications

Does technological progress make OECD countries greener? New evidence from panel CS-ARDL

Does technological progress make OECD countries greener? New evidence from panel CS-ARDL

Modelling the connection between energy intensity, renewable energy, globalization, technological innovation and CO2 emissions: A Quantile–on–Quantile technique

Facilitate or Inhibit: Corporate Environmental Performance and Financing Costs

Contact Info

Product

Resources

About

Modelling the connection between energy intensity, renewable energy, globalization, technological innovation and CO₂ emissions: A Quantile–on–Quantile technique