Green credit and fossil fuel resource efficiency: Advancing sustainability in Asia

Abstract

The research aims to investigate the correlation between green credit and fossil fuel resource efficiency within the ten ASEAN economies during the period 2000 to 2021, utilizing the CUP-FM (continuous-updated fully modified) estimation technique. The key findings illustrate that a 1% increase in green credit is associated with a 0.059% enhancement in the efficiency of fossil fuel resources across ASEAN member countries. Essentially, this suggests that the implementation of green credit policies in ASEAN nations significantly contributes to the efficient utilization of fossil fuel resources. Furthermore, the analysis indicates that patenting activities have an adverse impact on the efficiency of fossil fuel resource consumption in ASEAN countries. In light of these findings, key policy recommendations include a heightened focus within ASEAN economies on the digitalization of the green credit market, the promotion of sustainable literacy, and the integration of cryptocurrencies in financial transactions related to green credit.