Green Finances and Industrial Optimization: Pathways to Financial Development and Sustainable Goals in Europe

Yunze Li (), Yun Hao (), Abdur Rauf (), Sardar Fawad Saleem () and Marioara Iordan ()
Additional contact information
Yunze Li: School of Advanced International Studies，Johns Hopkins University，555 Pennsylvania Avenue, NW, Washington, D.C., USA.
Yun Hao: School of Economics & Management, Beijing Forestry University, Beijing, China. 3332504246@qq.comSchool of Economics & Management, Beijing Forestry University, Beijing, China. 3332504246@qq.com
Abdur Rauf: Department of Economics, University of Science & Technology, Bannu, Pakistan.
Sardar Fawad Saleem: Department of Economics, Abbottabad University of Science & Technology, Abbottabad, Pakistan.
Marioara Iordan: Institute for Economic Forecasting, Romanian Academy, Bucharest, Romania

Journal for Economic Forecasting, 2024, issue 2, 111-126

Abstract: Europe has initiated a phase characterized by heightened ecological consciousness, facilitating its advancements in pursuing the Sustainable Development Goals (SDGs) and stimulating its financial growth. This research investigates the correlation between green finance, innovation in the industrial sector, and the influence of policy instruments on financial development and attaining the SDGs in countries of the European Union (EU). The findings of the analysis, which utilizes data spanning from 2000 to 2022, demonstrate a substantial positive correlation between green finances and financial growth and SDG fulfillment. In the same way, fiscal stimulus, foreign direct investment (FDI), industrial value addition, and ecological technologies stimulate financial development. In addition, policy instruments such as carbon levies, green laws, and production-related mitigation technology have effectively contributed to advancing SDG objectives. In contrast, the study finds that challenges such as population growth, economic globalization, and traditional energy consumption greatly impede SDG advancement. Notably, the synergistic impacts of innovation combined with clean energy adoption appear critical, potentially transforming SDG outcomes in the EU. Therefore, the EU should support green finance efforts, boost sustainable industrial breakthroughs, and reform its legislative frameworks to mitigate globalization and traditional energy use faster to attain its SDG goals.

Keywords: Green Finances; Sustainable development goals; policy instruments; industrial output; Environmental Preservation; Green Innovation; Europe (search for similar items in EconPapers)
JEL-codes: O16 O33 O44 Q55 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ipe.ro/rjef/rjef2_2024/rjef2_2024p111-126.pdf

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:rjr:romjef:v::y:2024:i:2:p:111-126

Access Statistics for this article

Journal for Economic Forecasting is currently edited by Lucian Liviu Albu and Corina Saman

More articles in Journal for Economic Forecasting from Institute for Economic Forecasting Contact information at EDIRC.
Bibliographic data for series maintained by Corina Saman ( this e-mail address is bad, please contact ).