Investment in renewable energy and green financing and their role in achieving carbon-neutrality and economic sustainability: Insights from Asian region

Abstract

The successful transition of industrial operations from a conventional system to an environmentally friendly one is a prerequisite for achieving the goals of COP26 and Sustainable Development. Several factors influence a company's ecological and economic performance, and it is unlikely to achieve sustainability goals using traditional manufacturing methods. Thus, nations must capitalize on novel technologies and eco-friendly policies to revive the natural climate. This study highlights the significance of investing in renewable energy and green financing. It explains how nations can benefit from these programs, attain carbon-neutrality goals, and ensure green economic growth. Using the panel data of 12 Chinese provinces from 2000 to 2019 and analyzing it through dynamic and fully modified ordinary least squares techniques, this study highlights that both programs significantly helped China move towards carbon-neutrality goals and improve environmental quality. They also give countries a starting point for economic sustainability and enable them to combat issues like climate change and environmental degradation. Since it stresses input-output structure and uses negative yield in environmental quality and green growth instead of only focusing on production, this work differs from others that have analyzed traditional productivity. The findings may help achieve green economic development by highlighting the crucial role of clean energy and environmentally friendly funding in a nation's sustainable development.