Green Finance and Green Energy Nexus in ASEAN Countries: A Bootstrap Panel Causality Test
Nihal Ahmed,
Franklin Ore Areche,
Adnan Ahmed Sheikh and
Amine Lahiani
Additional contact information
Nihal Ahmed: Orléans Institute of Economics, Orléans University, CNRS, LEO, FRE, 2014, F-45067 Orléans, France
Franklin Ore Areche: Professional School of Agroindustrial Engineering, National University of Huancavelica, Huancavelica 09001, Peru
Adnan Ahmed Sheikh: Department of Business Administration, Air University Multan Campus, Multan 60000, Pakistan
Amine Lahiani: Orléans Institute of Economics, Orléans University, CNRS, LEO, FRE, 2014, F-45067 Orléans, France
Energies, 2022, vol. 15, issue 14, 1-13
Abstract:
Green energy is a crucial component in addressing expanding energy demands and combating climate change, but the possible negative repercussions of these technologies are frequently disregarded. Green energy’s deployment is tied to environmentally sustainable development goals (SDGs). It can only be achieved by scaling up the finance of investment that provides environmental benefits through new financial instruments and new policies, such as green banks, green bonds, community-based green funds, green central banking, etc. In an effort to address the issues with IPAT and ImPACT, this study employed the STIRPAT model approach, which is a proven framework for energy economics analysis. The author gathers yearly data spanning 2002–2018 for six ASEAN member countries with the aim of investigating the relationship between CO 2 emissions, green finance, energy efficiency, and the green energy index (GEX). After preliminary tests, the study employed the Westerlund test and Johansen Fisher test for long-term equilibrium and estimated the Granger causal links between variables using the generalized method of moments (GMM). The results indicate that green bonds are an effective technique for promoting green energy projects and considerably reducing CO 2 emissions. Therefore, governments should establish supporting policies with a long-term perspective to increase the investment of green energy projects related investment from private participants to ensure sustainable growth and address environmental challenges. This strategy may be appropriate during and after the COVID-19 period.
Keywords: renewable energy; energy efficiency; ASEAN; green economy; green finance (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
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