Achieving carbon-neutrality goals in Asian emerging economies. Role of investment in clean energy, eco-regulations, and green finance

Abstract

Predicting the future of the globe due to severe climate changes caused by the emission of human-induced gases is heated debate of this era. Paris Climate Accord (COP26) is one of the initiatives taken by the nations to achieve carbon neutrality (zero carbon) and prevent the planet from the hazardous effect of carbon emission. This study aims to examine if renewable energy consumption, green finance and eco-regulations help in reducing carbon emission in four emerging Asian economies. Utilizing the panel data from 2010 to 2021, this study applies cross sectional ARDL regression estimation to empirically examine the research issue. The findings indicate that the promotion of clean energy initiatives via renewable energy consumption, implementation of eco-regulations and utilization of green finance substantially reduce carbon emissions while enhancing a nation’s capacity to reach the objective of carbon neutrality. The findings have practical implication for the regulatory bodies to develop eco-regulations and motivate the nation towards using renewable energy in order to combat with carbon emission.