Financing the green transition: how green finance, green innovation, green growth, and environmental taxes can drive carbon neutrality
摘要
Motivated by growing environmental concerns and recent policy reforms, this study examines whether green finance, green innovation, green growth, and environmental taxes can curb CO2 emissions in 25 environmentally friendly countries. While existing research has explored these factors individually, a comprehensive analysis of their combined impact remains lacking in conjunction with urbanization, internet users, and trade openness. To address this gap, we employ the Method of Movement Quantile Regression and Quantile Regression (QR) to analyze data from 2000 to 2021 for these EPI countries. Our findings reveal that green finance, green innovation, green growth, environmental taxes, urbanization, and trade openness significantly negatively impact CO2 emissions across lower, middle, and upper quantiles. However, internet users revealed a positive impact on CO2 emissions. Similarly, utilizing the Dumitrescu-Hurlin test to establish causality, we identify bidirectional relationships between most variables and CO2 emissions. These results emphasize importance of green policies in nurturing sustainable development. Consequently, the study put forward a valuable policy recommendations to assist these 25 countries in achieving environmental sustainability.