Impact of Green Financing and Public Policies Towards Investment Yield: Evidence from European and Asian Economies

The green investment & financing are the key concerned areas of the prevalent green management which are inspected by most of the green investors to ascertain the viability for the appropriate investment opportunities in the green investment regions. This study is oriented to examine the expected relationship between green financing, public policies and investment yield, which ultimately affect the green investors of the targeted Asian and European economies. The cross section data for the period of 2011–2022 related to green, public policy and controlling variables; have been congregated from the websites and reports of Bloom Berg NEF, WBI, IFS, Federal Banks of Asia & Europe, Global Financial Development Database, and ADBI. After checking the different diagnostics tests, and calculating the descriptive statistics, the long term effect of green financing and public policies towards investment yield through Pooled OLS, DOLS, and FMOLS are analyzed in the E-Views. The empirically calculated findings declare that Green Mutual Funds, Green Wage Rate, and Local Weather Forecast affect insignificantly on the investment yield, while rest of the factors affect significantly on the investment yield (ROI), which lead to meet the maximum objectives of this study. The significant results proclaim the empirical allegiance of all the study factors in the Asian & European green markets. The insignificant findings instigate the policy makers to reappraise the green considerations and flaws in promoting the green innovations must be controlled by some concrete green policies and green investment awareness programs. By and large, the lenient low green financing cost can boost the green projects in the long run.