Impacts of green energy finance on eco-friendly environments

Abstract

This study examined how green energy finance and ecological development affect the eco-friendly environments of the United States, China, and France using data from the panel from 2000 to 2020. The findings show that the influence of green energy finance and ecological development on carbon dioxide (CO2), sulfur dioxide (SO2), and nitrous oxide (NO) emissions is negative. This negative coefficient demonstrates a well-developed eco-friendly environment. Due to their positive correlation with pollutant emissions, economic development and urbanization have a detrimental influence on the eco-friendly environments. The unidirectional causation relationship between the eco-friendly environments and ecological development is established. The presence of bidirectional links amongst urbanization, economic growth, and eco-friendly environments suggests that urbanization and economic growth expansion have impacts on eco-friendly environments and vice versa. Based on this analysis, the study makes three policy recommendations to legislators: strengthening the assimilation of ecological development and green recovery with green energy finance, developing a corporate ecological structure to monitor local governments in increasing the proficiency of green energy finance, which ultimately enhances green recovery; and designing long-term and medium-term effective strategies as an exterior involvement measure to support green energy finance and ecological development in the financial market in order to create eco-friendly environments and green recovery.