Analyzing the Impact of Natural Resource Rents, Green Finance and Digital Finance on Environmental Quality: Evidence from Developing Countries

Dudi Permana, Ansa Savad Salim, Yanto Ramli and Zilola Shamansurova
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Dudi Permana: Universitas Mercu Buana, Indonesia
Ansa Savad Salim: Department of Management and Marketing, College of Business Administration, University of Bahrain, Bahrain
Yanto Ramli: Universitas Mercu Buana, Indonesia
Zilola Shamansurova: Department of Finance and Financial Technologies, Tashkent State University of Economics, Uzbekistan

International Journal of Energy Economics and Policy, 2024, vol. 14, issue 6, 195-204

Abstract: Most of the developing economies face the issue of environmental degradation despite having tremendous growth in previous decades. Therefore, these countries are not able to preserve their development level if they do not achieve their targets of environmental sustainability. In this view, this study aims to analyze the effect of green finance, digital finance and natural resources on carbon dioxide (CO2) emissions for a panel of 23 developing countries over 2010 to 2020 period. The study has applied Driscoll-Kraay Standard Error estimation technique to conduct the empirical estimation. The outcomes of the study identify that natural resources and digital finance reduce, whereas green finance increase the level of CO2 emissions. The findings of causality test indicate that green finance, digital finance and natural resources do not granger cause the CO2 emissions. Thus, natural resources and digital finance have significant contribution to improve the environmental quality. Based on the findings, the study recommends relevant policies for the effective utilization of natural resources and promoting digital finance to achieve the targets of environmental sustainability in developing countries.

Keywords: Natural Resource Rents; Green Finance; Digital Finance; Environmental quality; Developing Countries (search for similar items in EconPapers)
JEL-codes: F64 O13 O17 O44 P28 P48 (search for similar items in EconPapers)
Date: 2024
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