The role of natural resources and eco-financing in producing renewable energy and carbon neutrality: Evidence from ten Asian countries

Abstract

The present generation is already facing challenging situation due to global warming effects. These effects prior to pre-industrial era are more visible and severe, hence, causing ecological destruction. Economies, in this context, are exerting maximum efforts to ensure sustainable environment, especially by the year 2050. Amongst the efforts, factors such as eco-financing and renewable energy production are the effective solutions to achieve carbon neutrality goal. Thereby, the present research examines the impact of natural resources and eco-financing on producing RE and attaining carbon neutrality in ten Asian countries. With the help of cross-sectionally augmented autoregressive distributed lag (CS-ARDL) technique, results indicate that natural resources, eco-financing, economic growth, industrialization, increase renewable energy production and helps in achieving COP26 resolution; carbon neutrality goal. Asian economies having this empirical baseline, are advised to unlock the potential of eco-financing in order to achieve carbon neutrality goal.