Investing for a Greener Future: Asymmetric Nexus between Green Finance and Renewable Energy Technology Innovation

Abstract

Green finance (GF) and renewable energy (RE) technology innovation (RTI) play a pivotal role in paving the way toward a low‐carbon economy. They hold immense potential to drive meaningful change and ensure a greener future for generations to come. In the present study, an asymmetric connection between GF and RTI is analyzed in the top 10 GF promoter economies. In the prior research, panel data approaches are utilized to achieve consistent results about the linkage between the variables. However, in this investigation, a novel “Quantile‐on‐Quantile” method is introduced that provides detailed, country‐specific insights into time–series dependence. In the findings, a positive association between GF and RTI in most economies at specific data distribution segments is suggested. Moreover, it is highlighted in the data that the degree of asymmetries in the relationships between the variables varies among countries, underscoring the significance of policymakers keeping a close eye on changes in GF and RE technologies.