Greening the Financial System in USA, Canada and Brazil: A Panel Data Analysis

Ioan Batrancea, Larissa Batrancea, Malar Maran Rathnaswamy, Horia Tulai, Gheorghe Fatacean and Mircea-Iosif Rus
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Ioan Batrancea: Faculty of Economics and Business Administration, Babes-Bolyai University, 58-60 Teodor Mihali Street, 400591 Cluj-Napoca, Romania
Larissa Batrancea: Faculty of Business, Babes-Bolyai University, 7 Horea Street, 400174 Cluj-Napoca, Romania
Malar Maran Rathnaswamy: Faculty of Economics and Business Administration, Babes-Bolyai University, 58-60 Teodor Mihali Street, 400591 Cluj-Napoca, Romania
Horia Tulai: Faculty of Economics and Business Administration, Babes-Bolyai University, 58-60 Teodor Mihali Street, 400591 Cluj-Napoca, Romania
Gheorghe Fatacean: Faculty of Economics and Business Administration, Babes-Bolyai University, 58-60 Teodor Mihali Street, 400591 Cluj-Napoca, Romania
Mircea-Iosif Rus: National Institute for Research-Development in Construction, Urbanism and Sustainable Territorial Development “URBAN INCERC”, 117 Calea Floresti, 400524 Cluj-Napoca, Romania

Mathematics, 2020, vol. 8, issue 12, 1-13

Abstract: Each country designs its own scheme to achieve green financing and, in general, credit is considered to be a fundamental source of greening financial systems. The novelty of this study resides in that we examined green financing initiatives in USA, Canada and Brazil by focusing on major components of the financial systems before, during and after the 2008 world financial crisis. By means of panel data analysis conducted on observations ranging across the period 1970–2018, we investigated variables such as domestic credit from banks, domestic credit from the financial sector, GDP, N 2 O emissions, CO 2 emissions and the value added from agriculture, forest and fishing activities. According to our findings, domestic credit from banks was insufficient to achieve green financing. Namely, in order to increase economic growth while reducing global warming and climate change, the financial sector should assume a bigger role in funding green investments. Moreover, our results showed that domestic credit from the financial sector contributed to green financing, while CO 2 emissions remained a challenge in capping global warming at the 1.5 °C level. Our empirical study supports the idea that economic growth together with policies targeting climate change and global warming can contribute to green financing. Over and above that, governments should strive to design sustainable fiscal and monetary policies that promote green financing.

Keywords: green finance; green economy; sustainable development; N 2 O emissions; CO 2 emissions (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jmathe:v:8:y:2020:i:12:p:2217-:d:461635

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