Green finance and energy transition to achieve net-zero emission target

Dongyang Zhang, Yumei Guo and Farhad Taghizadeh-Hesary

Energy Economics, 2023, vol. 126, issue C

Abstract: This study measured the effects of green financing and energy transition on COP26 targets for 40 countries, namely, 14 economies with market-based financial systems and 26 countries with bank-based financial systems, from 2010 to 2020. The findings confirmed that, in the market-based financial system, GDP per capita has a positive coefficient, while for countries with a bank-based financial system, GDP per capita has a negative coefficient on greenhouse gas emissions. With a 1% improvement in the energy transition of countries under a market-based financial structure, greenhouse gas emissions will decrease by 0.08%. The central practical policies recommended by this research are enhancing green loans, bank financing, and green bank guarantees.

Keywords: COP26; Energy transition; Green financing; Fully modified OLS; GHGs emissions (search for similar items in EconPapers)
JEL-codes: C23 Q41 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:126:y:2023:i:c:s0140988323004346

DOI: 10.1016/j.eneco.2023.106936

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