Green financial initiatives for sustainable economic growth: A literature review

Abstract

While combating the destructive effects of climate changes, calls are growing for countries to “build back better “to create a more inclusive and sustainable economy that is climate-resilient. In particular, green finance mechanisms can be employed for the green recovery toward economic growth.This article is intended to conduct a literature review on the previously conducted studies that have analysed the impact of eco-friendly financial initiatives and their impacts on economic growth.Systematic analysis of existing literature was undertaken to review the preset studies to examine eco-friendly financial initiatives on economic growth. As a result, a total of 27 studies were identified, examining the environmental variables used, the financial performance variables, and the main findings obtained by these studies.The paper offers exciting implications for policymakers, highlighting that commitment towards adopting green financial practices may positively influence economic performance.