Green finance and Sustainable Development Goals: is there a role for geopolitical uncertainty?

Satar Bakhsh (), Md Shabbir Alam () and Wei Zhang ()
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Satar Bakhsh: China University of Geosciences
Md Shabbir Alam: University of Bahrain
Wei Zhang: China University of Geosciences

Economic Change and Restructuring, 2024, vol. 57, issue 4, No 1, 30 pages

Abstract: Abstract This research conducts a comprehensive analysis of the relationship between green finance and the Sustainable Development Goals (SDGs), particularly focusing on SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). Utilizing a novel SDG index based on United Nations criteria, the study evaluates the effect of green finance on sustainability across OECD economies between 2000 and 2020. Employing advanced econometric methods, including Driscoll–Kraay standard errors, FMOLS, DOLS, and the method of moments quantile regression, the findings reveal that green finance, along with environmental governance, fiscal policy, and population growth, significantly contributes to the advancement of SDGs. However, the study also highlights the detrimental impact of elevated geopolitical risks, which can hinder progress toward these goals and partially negate the benefits of green finance initiatives. These insights are vital for policymakers striving to develop effective strategies to promote the SDGs amidst current global uncertainties.

Keywords: Green finance; Geopolitical risk; Environmental governance; Sustainable Development Goals; Fiscal policy (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10644-024-09719-5

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