Green finance and renewable energy: A worldwide evidence

Samar S. Alharbi, Md Al Mamun, Sabri Boubaker and Syed Kumail Abbas Rizvi

Energy Economics, 2023, vol. 118, issue C

Abstract: Using a large sample of 44 countries for 2007–2020, we provide evidence that green finance (green bonds) significantly fosters renewable energy production. Our results are robust to addressing cross-sectional dependence concerns, allowing structural breaks, and using several alternative specifications and estimation methods. Compared to our baseline findings, the effect is higher for green bonds issued to finance alternative energy. We also find that the existing stock of technological capacity significantly fosters the impact of green finance on renewable energy production, particularly in the long run. The long-run impact of green finance is significant in countries with higher emissions per dollar GDP, higher levels of climate change exposure to the economy and human life, and better-developed credit markets. The effect is more pronounced in countries with low or net zero emission targets and following the post-Paris 2015 agreements.

Keywords: Renewable energy; Common correlated effects pooled (CCEP); Green finance; Innovation (search for similar items in EconPapers)
JEL-codes: F21 P48 Q42 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (57)

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Working Paper: Green Finance and Renewable Energy: A Worldwide Evidence (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:118:y:2023:i:c:s0140988322006284

DOI: 10.1016/j.eneco.2022.106499

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