Influence of green finance and renewable energy resources over the sustainable development goal of clean energy in China

Abstract

Recently, sustainable development has been a global requirement due to environmental instability worldwide that has attracted much attention from scholars and policymakers. Thus, the current article objectives are to examine the influence of green finance and renewable energy sources (solar power, bioenergy, hydropower, and wind power) over sustainable development in China. The secondary data were extracted from the databases of the Global Green Finance Index (GGFI), International Renewable Energy Agency (IRENA), and World Development Indicators (WDI) from 1986 to 2019. The authors checked the unit root through Augmented Dickey-Fuller (ADF) test, and verified the associations among the constructs with the autoregressive distributed lag model (ARDL). The results indicate that green finance and renewable energy sources have a positive association with sustainable development, and a negative association with carbon emissions in China. This study helps policymakers in developing policies related to sustainable development in the country using green finance.