How does economic recovery impact green finance and renewable energy in Asian economies

Abstract

Recent years a surge is noted in renewable energy (RE) and energy efficiency domain as academics and corporate leaders grapple with the sustainable development. Thus, the aim of study is to test the relationship among green financing, renewable energy development and green economic recovery in Asian context. Empirical research on Asia shown a connection between economic recovery, RE growth, and green finance growth for 1995–2018 by applying the Quantile Regression technique. Therefore, this study analyzes the link between green financing, investment in RE projects, economic development, and sustainability practices in Asian nations. The multiple robustness and sensitivity assessments indicate the detrimental impact of RE on environmental deterioration and the trade-off between unemployment and environmental degradation. The causality test shows that economic recovery, RE, and green finance contribute to a larger ecological footprint. The reduction in unemployment and the environmental impact may be attributed mainly to technological advancement that encourages sustainable production and consumption. This study also provides implications for future policy actions.