Assessing the impact of green finance, innovation, and environmental sustainability on economic growth in BRICS economies
摘要
The rapidly evolving industrial landscape and environmental challenges in the BRICS countries are raising growing concerns about the sustainability of their growth trajectories. Despite their growing role in the global economy, limited empirical research has been conducted on how green finance, green technological innovation and environmental sustainability impact long-term economic growth. However, the current study addresses this gap by investigating the dynamic relationships among these factors for BRICS countries from 1990 to 2022. Using advanced second-generation econometric techniques, including the Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) and Dumitrescu-Hurlin (DH) panel causality tests, the study mitigates issues of endogeneity, cross-sectional dependence, and heterogeneity often ignored in previous literature. The results show that green finance and technological innovation are both greatly enhancing economic growth, while environmental degradation is hampering it. In addition, two-way causal links are identified between green finance (GRF), green growth (GRG) and economic growth (SGEI), underlining the inter-linkages between these variables. The findings provide a solid policy response, emphasising the need to strengthen green financial instruments, to promote clean technology innovation and to implement a coherent sustainability policy. This study contributes to the growing literature by providing a comprehensive framework for understanding the mechanisms by which green finance and innovation in emerging economies drive sustainable development.