Green finance, private investments and fossil fuels rents

Xiaoyu Zhang and Yanling Xi

Resources Policy, 2024, vol. 99, issue C

Abstract: Private investment and green finance have significantly influenced the fossil fuel industries in various countries. This study investigates the impact of green finance and private investment on fossil fuel rents in 20 major carbon-emitting nations from 2000 to 2020. Using ARDL estimation, findings reveal that a 1% increase in green finance reduces fossil fuel rents by 0.37% in the short term and 0.40% in the long term, driven by greater investments in sustainable energy. Conversely, a 1% increase in private investment leads to a 0.17% short-term and 0.23% long-term rise in fossil fuel rents, indicating limited private green investment. To address this gap, the study recommends policies such as green bond incentives, strengthened ESG reporting, improved financial risk management, enhanced business climates, digitalization of green financial markets, and sustainable governance in the fossil fuel sector.

Keywords: Green finance; Private investment; Fossil fuels rent; Private sustainable investment; Major carbo emitters (search for similar items in EconPapers)
JEL-codes: E22 G11 Q35 Q54 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420724007827
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:99:y:2024:i:c:s0301420724007827

DOI: 10.1016/j.resourpol.2024.105415

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().