Green finance and green growth: A systematic literature review on awareness, existing channels, instruments, and techniques

Abstract

The mounting concerns for ecological safeguards, climate alteration, and sustainable development have seen regulators and academics recently emphasise green finance and green growth, and such thoughts have gained much attention within the eco-conscious scholarly literature. This study provides an exhaustive examination of green finance and green growth-related literature through the critical analysis and summary of seventy (70) relevant studies. The study's conclusions demonstrated a significant relationship between green finance and green growth. The study also identified several other factors that influence green growth, the most significant of which are the country's various policy contexts, socioeconomic development phases, economic development, energy consumption, and technological innovation. Green bonds were found to be the most prevalent green finance product for green growth. Econometric models have become the most widely used technique for assessing the significance of the relationship between green finance and green growth, with case studies and textual and content analysis finding only sporadic use. Regulation and policies, risk administration, performance assessment, and methods, among others, were found to be the major gaps in the area of green finance and green growth. This study furnishes a theoretical blueprint for subsequent research endeavours. The analysis presented in this study will assist regulators in formulating policies that consider the needs of stakeholders from the perspective of policy development, giving nations an advantage in promoting growth and enhancing well-being.