Nexus between green finance, renewable energy and carbon emission: Empirical evidence from selected Asian economies

Lan Xu and Yang Wu

Renewable Energy, 2023, vol. 215, issue C

Abstract: Using data from selected Asian countries from 1995 to 2018, this new article investigated the dynamic correlation among non-fossil fuel and fossil - based energy utilization, economic growth, and Gross domestic product (GDP). For empirical research, the panel co-integration approach with structural breakdowns is employed. The findings indicate that non-fossil fuel and fossil - based energy, economic growth, and economic expansion have a long-term equilibrium connection. In both the short and long term, the panel causality studies reveal bidirectional causation between industrial production and both non-renewable energy and renewable energy consumption. The results from the panel error correction model reveals that the positive (negative) elasticities of nonrenewable energy consumption are 0.96 (1.15), suggesting that a 1% rise (decrease) in nonrenewable energy is expected to increase (reduce) 0.96% (1.15%) in carban dioxide emissions. These findings suggest that selected Asian countries’ industrial production and overall economic growth are still energy-dependent. In addition, there is two directional short run test causality among renewable energy consumption and non-renewable energy consumption might help to create a more sustainable energy economy.

Keywords: Non-fossil fuels; Non-renewable energy; Gross domestic product growth; Selected ASIAN countries; Green financial activities; Panel model (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:215:y:2023:i:c:s0960148123008893

DOI: 10.1016/j.renene.2023.118983

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