Green innovation and renewable energy reduce carbon emissions, while green finance supports their effectiveness in achieving sustainability goals.
Author
Shivani, Lecturer, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India; Department of Management Studies, Indian Institute of Technology Delhi, Delhi, India
Summary
Over the last few decades, environmental crises and resource shortages have intensified due to the erratic economic growth patterns of economies around the world, prompting the inclusion of sustainable development in every aspect of life. In this context, the 2030 United Nations Sustainable Development Goal (SDG) 13 emphasizes the importance of a sustainable environment and the urgent need for climate change mitigation. This research, in light of sustainable development, examines the impact of green innovation and renewable energy on achieving net-zero emissions in the Asian region from 2000 to 2019. Further, as green initiatives require substantial funds for operationalization, green finance can fill this gap by providing financial support to nations to achieve sustainability goals. Hence, we also explore the moderating role of green finance in facilitating green innovation to reduce carbon emissions. The results indicate that green innovation and renewable energy have an inverse relationship with carbon emission, while GDP and population positively influence carbon emission. Moreover, green finance moderates the link between green innovation and carbon emission in countries having high levels of green innovation. Based on the results, we recommend that Asian countries should implement policies to encourage investments and innovation in green innovation and clean energy sectors to achieve Sustainable Development Goals.
Published in: Approaches to Global Sustainability, Markets, and Governance
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