Impact of Green Finance on High-Quality Economic Development: A Panel Data Regression

Abstract

Sustainable environmental practices must be combined with economic prosperity. This is due to the possibility that an excessive amount of economic growth might harm the environment. This research looks at how green financing may help to advance sustainable, high-caliber economic growth. The sample's duration is dispersed over many nations. Global strategies go from expansion at a quick pace to sustainability. As a result, environmental factors are being taken into account more and more in the calculation of important economic metrics including trade liberalization, GDP growth, and foreign direct investment (FDI). The research draws attention to how economic activity has a detrimental influence on the environment. It focuses on emissions of carbon dioxide particularly and the significance of green financing to lessen these impacts. The goal of green finance, which backs projects like energy from renewable sources, is to minimize environmental damage while promoting economic stability. by the introduction of a model to systematically determine the CO2 emissions drivers. Policymakers may benefit greatly from the insights this study offers. The results highlight how crucial it is to control energy use and cut emissions while preserving economic growth.