Research on the interplay between green finance and manufacturing sustainability outcomes: insights for low-carbon economy in the post-COVID-19 era.

Abstract

In the quest to strengthen resilient and sustainable recovery in the post-COVID-19 era, there is a huge requirement for manufacturing firms to adopt green finance which is dominated by green bond issuance. Nevertheless, published studies that provide insights on factors that influence the issuance of green bonds within manufacturing firms in the post-COVID-19 era and the impact on sustainable outcomes are currently non-existent. Therefore, this study analyzed the interrelationships that exist between the influencing factors of green bond issuance within manufacturing firms using decision-making trial and evaluation laboratory (DEMATEL) and data from Nigerian manufacturing firms. Then, a structural model of their importance levels was illustrated using interpretive structural modeling (ISM) while their impact on manufacturing sustainability outcomes was estimated with the aid of evaluation based on distance from average solution (EDAS). The study results highlight the key influencing factors of green bond issuance as environmental competencies, policy framing, low corruption, public awareness, and government support thereby signifying the criticality of strong institutions in facilitating green finance in the post-pandemic era. Besides, the study results demonstrate that green finance can significantly strengthen manufacturing sustainability in the post-COVID-19 era via green bonds by enhancing sustainable waste management, technological growth, and quality improvement as well as reducing carbon emissions. The study findings can provide a reference to decision-makers in manufacturing enterprises to predict scenarios and enact policies that facilitate the success of green finance in the post-COVID-19 era to further develop a low-carbon economy and increase competitive edge.