Going Sustainable or Going Extinct: The Consequences of Clean Technologies, Green Finance, and Natural Resources on the Environment

Md. Emran Hossain, Ehsan Ullah, Mohd Ziaur Rehman, Mohammad Haseeb and Miguel Angel Esquivias ()
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Ehsan Ullah: Graduate School of Economics and Management, Ural Federal University, Yekaterinburg 620002, Russia
Mohd Ziaur Rehman: Department of Finance, College of Business Administration, King Saud University, P.O. Box 71115, Riyadh 11587, Saudi Arabia
Mohammad Haseeb: Department of Management Studies, Graphic Era Deemed to be University, Dehradun 248002, Uttarakhand, India
Miguel Angel Esquivias: Faculty of Economics and Business, Airlangga University, Surabaya 60286, Indonesia

Sustainability, 2024, vol. 16, issue 14, 1-18

Abstract: Although “green” and “clean” are key terms in sustainable environmental development, the literature on the relationship between green finance, clean environmental technology, and a sustainable environment is lacking. Furthermore, the exploitation of natural resources may provide a distinctive perspective on this interconnection, contributing to more promising policy ramifications for the future planet. Thus, this study examines the impact of sustainable environmental technologies, green finance, natural resource rents, and economic growth on environmental sustainability, proxied by the novel “Environmental Sustainability Index (ESI)”. This analysis utilizes data spanning from 2000 to 2021 for China, applying the cutting-edge “augmented autoregressive distributed lag (AARDL)” model. The findings indicate that sustainable environmental technologies do not effectively enhance long-term environmental sustainability, but rather provide a positive contribution to the environment in the short term. In addition, economic expansion and the exploitation of natural resources have adverse effects on environmental sustainability, both in the near term and over an extended period. Nevertheless, green finance has a significant role in promoting environmental sustainability in China. This study further reveals the causal relationship between the chosen variables. This study highlights the necessity of developing a comprehensive strategy aimed at enhancing environmental sustainability and green finance. This can be achieved by allocating funds towards the advancement of clean environmental technology and the extraction of eco-friendly natural resources.

Keywords: environmental sustainability index; augmented ARDL; green finance; environmental technologies; natural resource (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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