The impact of green finance on environmental protection

Krenare Shahini Gollopeni; Jeton Mazllami

doi:10.31893/multiscience.2024220

Keywords:

CO2

green finance

environmental protection

GMM

Abstract

Green finance, in contrast to traditional finance, has a close relationship with the environment and offers several advantages. This is why the study tries to illustrate how green financing affects environmental protection and evaluates its contribution to reducing environmental pollution. Green finance is an innovative method of funding with the goal of preserving the environment. It is crucial, widely discussed, and has caught the interest of many academics. They include programs that stimulate spending on initiatives aimed at minimizing adverse environmental effects. This study highlights the importance of green finance in environmental protection for the 36 OECD countries for the 11 years from 2010 to 2021. Panel data is used to derive results by applying models such as OLS, OLS Robust, Fixed effect, Random effects, and GMM. Empirical results according to the GMM method show that green finance has a positive impact on environmental protection, so the growth of green finance affects the reduction of carbon dioxide emissions.
References
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11. Falcone, P. M. (2020). Environmental regulation and green investments: The role of green finance. International Journal of Green Economics, 14(2), 159-173.https://doi.org/10.1504/IJGE.2020.109735
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14. Gollopeni, B. (2016). Socio-urban developments in Kosovo: Study case Pristina.MMM Geo Information Journal, (6), 81-93.
15. Hemanand, D. M. (2022). Applications of intelligent model to analyze the green finance for environmental development in the context of artificial intelligence. Computational. https://doi.org/10.1155/2022/2977824
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25. Rasoulinezhad, E. &.-H. (2022). Role of green finance in improving energy efficiency and renewable energy development. Energy Efficiency, 15(2),14.
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28. Umar, M. &. (2023). Do green finance and innovation matter for environmental protection? A case of OECD economies. . Energy Economics, 119, 106560. doi:https://doi.org/10.1016/j.eneco.2023.106560
29. Wang, T. U. (2023). Green finance and clean taxes are the ways to curb carbon emissions: An OECD experience. Energy Economics,106842. https://doi.org/10.1016/j.eneco.2023.106842
30. Wang, Y. &. (2016). The role of green finance in environmental protection: Two aspects of market mechanism and policies. Energy Procedia, 311-316. https://doi.org/10.1016/j.egypro.2016.12.053
31. Wu, X. S. (2021). Testing role of green financing on climate change mitigation: Evidences from G7 and E7 countries. Environmental Science and Pollution Research, 28, 66736-66750.
32. Xia, L. L. (2022). Green finance strategies for mitigating GHG emissions in China: Public spending as a new determinant of green economic development. Frontiers in Environmental Science, 10, 991298.https://doi.org/10.3389/fenvs.2022.991298
33. Xiong, Q. &. (2023). Influence analysis of green finance development impact on carbon emissions: an exploratory study based on fsQCA. Environmental Science and Pollution Research, 30(22), , 61369-61380.

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to cite

Gollopeni, K. S., & Mazllami, J. (2024). The impact of green finance on environmental protection. Multidisciplinary Science Journal, 6(11), 2024220. https://doi.org/10.31893/multiscience.2024220

[1] A’yun, I. Q. (2023). The impact of economic development and density population on environmental quality in Indonesia. . In IOP Conference Series: Earth and Environmental Science IOP Publishing, 12013.

[2] Arellano, M. &. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations . The review of economic studies, 58(2), , 277-297 https://doi.org/10.2307/2297968.

[3] Bakry, W. M. (n.d.). Is green finance really “green”? Examining the long-run relationship between green finance, renewable energy and environmental performance in developing countries. Renewable Energy,2023. https://doi.org/10.1016/j.renene.2023.03.020

[4] Begum, R. A. (2015). CO2 emissions, energy consumption, economic and population growth in Malaysia.Renewable and Sustainable Energy Reviews, 41, 594-601.

[5] Bieth, R. C. (2021). The influence of Gross Domestic Product and human development index on CO2 emissions. In Journal of Physics: Conference Series (Vol. 1808, No. 1, p. 012034). IOP Publishing.

[6] Bilalli, A. G. (2024). The Relationship Between Renewable Energy Consumption, Carbon Dioxide Emissions, Economic Growth, and Foreign Direct Investment: Evidence from Developed European Countries. International Journal of Sustainable Development & Planning, 19(1).

[7] Bom, S. J. (2019). A step forward on sustainability in the cosmetics industry: A review. Journal of Cleaner Production,225,270-290.https://doi.org/10.1016/j.jclepro.2019.03.255

[8] Broniewicz, E. (2011). Environmental protection expenditure in European Union. Environmental Management in Practice, 21(36), .

[9] Cadogan-Cowper, A. &. (2011). Measuring the green economy. Australian Bureau of Statistics.

[10] Ertugrul, H. M. (2016). The impact of trade openness on global carbon dioxide emissions: Evidence from the top ten emitters among developing countries. Ecological Indicators, 67, 543-555.

[11] Falcone, P. M. (2020). Environmental regulation and green investments: The role of green finance. International Journal of Green Economics, 14(2), 159-173.https://doi.org/10.1504/IJGE.2020.109735

[12] Feng, H. &. (2023). Does environmental psychology matter: role of green finance and government spending for sustainable development. Environmental Science and Pollution Research, 30(14), 39946-39960. https://doi.org/10.1007/s11356-022-24969-4

[13] Gollopeni, B. (2016). Kosovar emigration: Causes, losses and benefits. Sociologija i prostor: časopis za istraživanje prostornoga i sociokulturnog razvoja, 54(3 (206)), 295-314.

[14] Gollopeni, B. (2016). Socio-urban developments in Kosovo: Study case Pristina.MMM Geo Information Journal, (6), 81-93.

[15] Hemanand, D. M. (2022). Applications of intelligent model to analyze the green finance for environmental development in the context of artificial intelligence. Computational. https://doi.org/10.1155/2022/2977824

[16] Iqbal, S. T.-H. (2021). Assessing the role of the green finance index in environmental pollution reduction. Studies of Applied Economics,. http://dx.doi.org/10.25115/eea.v39i3.4140

[17] Ivanova, N. G. (2021). Green finance. Earth and Environmental Science.

[18] Jian, X. &. (2023). Dynamic effect of green financing and green technology innovation on carbon neutrality in G10 countries: fresh insights from CS-ARDL approach. Economic Research-Ekonomska Istraživanja, 36(2), 2130389.https://doi.org/10.1080/1331677X.2022.2130389

[19] Jin, C. L. (2023). Green finance, renewable energy and carbon neutrality in OECD countries.Renewable Energy, 279-284.https://doi.org/10.1016/j.renene.2023.04.105

[20] Madaleno, M. D. (2022). A step forward on sustainability: The nexus of environmental responsibility, green technology, clean energy and green finance. Energy Economics, 109, 105945.

[21] Muganyi, T. Y. (2021). Green finance, fintech and environmental protection: Evidence from China. Environmental Science and Ecotechnology,100107. https://doi.org/10.1016/j.ese.2021.100107

[22] Otim, J. M. (2022). The effects of gross domestic product and energy consumption on carbon dioxide emission in Uganda (1986-2018). International Journal of Energy Economics and Policy, 12(1) , 427-435.https://doi.org/10.32479/ijeep.12552

[23] Patiño, L. I. (2020). The relationship of energy and CO2 emissions with GDP per capita in Colombia.Atmosphere,11(8),778. https://doi.org/10.3390/atmos11080778

[24] Rahman, A. &. (2022). Green Finance Market Mechanisms and Policies in Environmental Protection and the ‘Ten C’s’ in Investment Climate. Universe International Journal of Interdisciplinary Research.

[25] Rasoulinezhad, E. &.-H. (2022). Role of green finance in improving energy efficiency and renewable energy development. Energy Efficiency, 15(2),14.

[26] Sepehrdoust, H. &. (2017). The challenge of economic growth and environmental protection in developing economies.Iranian Economic Review, 21(4), 865-883.

[27] Sikder, M. W. (2024). Driving factors of CO2 emission reduction in the logistics industry: an assessment of the RCEP and SAARC economies.Environment, Development and Sustainability, 26(1), 2557-2587.

[28] Umar, M. &. (2023). Do green finance and innovation matter for environmental protection? A case of OECD economies. . Energy Economics, 119, 106560. doi:https://doi.org/10.1016/j.eneco.2023.106560

[29] Wang, T. U. (2023). Green finance and clean taxes are the ways to curb carbon emissions: An OECD experience. Energy Economics,106842. https://doi.org/10.1016/j.eneco.2023.106842

[30] Wang, Y. &. (2016). The role of green finance in environmental protection: Two aspects of market mechanism and policies. Energy Procedia, 311-316. https://doi.org/10.1016/j.egypro.2016.12.053

[31] Wu, X. S. (2021). Testing role of green financing on climate change mitigation: Evidences from G7 and E7 countries. Environmental Science and Pollution Research, 28, 66736-66750.

[32] Xia, L. L. (2022). Green finance strategies for mitigating GHG emissions in China: Public spending as a new determinant of green economic development. Frontiers in Environmental Science, 10, 991298.https://doi.org/10.3389/fenvs.2022.991298

[33] Xiong, Q. &. (2023). Influence analysis of green finance development impact on carbon emissions: an exploratory study based on fsQCA. Environmental Science and Pollution Research, 30(22), , 61369-61380.

Abstract

References

How to cite