Green Finance and Green Energy Nexus in ASEAN Countries: A Bootstrap Panel Causality Test
Green energy is a crucial component in addressing expanding energy demands and combating climate change, but the possible negative repercussions of these technologies are frequently disregarded. Green energy’s deployment is tied to environmentally sustainable development goals (SDGs). It can only be...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-07-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/15/14/5068 |
| _version_ | 1797439722559111168 |
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| author | Nihal Ahmed Franklin Ore Areche Adnan Ahmed Sheikh Amine Lahiani |
| author_facet | Nihal Ahmed Franklin Ore Areche Adnan Ahmed Sheikh Amine Lahiani |
| author_sort | Nihal Ahmed |
| collection | DOAJ |
| description | Green energy is a crucial component in addressing expanding energy demands and combating climate change, but the possible negative repercussions of these technologies are frequently disregarded. Green energy’s deployment is tied to environmentally sustainable development goals (SDGs). It can only be achieved by scaling up the finance of investment that provides environmental benefits through new financial instruments and new policies, such as green banks, green bonds, community-based green funds, green central banking, etc. In an effort to address the issues with IPAT and ImPACT, this study employed the STIRPAT model approach, which is a proven framework for energy economics analysis. The author gathers yearly data spanning 2002–2018 for six ASEAN member countries with the aim of investigating the relationship between CO<sub>2</sub> emissions, green finance, energy efficiency, and the green energy index (GEX). After preliminary tests, the study employed the Westerlund test and Johansen Fisher test for long-term equilibrium and estimated the Granger causal links between variables using the generalized method of moments (GMM). The results indicate that green bonds are an effective technique for promoting green energy projects and considerably reducing CO<sub>2</sub> emissions. Therefore, governments should establish supporting policies with a long-term perspective to increase the investment of green energy projects related investment from private participants to ensure sustainable growth and address environmental challenges. This strategy may be appropriate during and after the COVID-19 period. |
| first_indexed | 2024-03-09T11:57:14Z |
| format | Article |
| id | doaj.art-15fafa2ddf6a4decb6cd7af85dfb1ec8 |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-09T11:57:14Z |
| publishDate | 2022-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-15fafa2ddf6a4decb6cd7af85dfb1ec82023-11-30T23:07:17ZengMDPI AGEnergies1996-10732022-07-011514506810.3390/en15145068Green Finance and Green Energy Nexus in ASEAN Countries: A Bootstrap Panel Causality TestNihal Ahmed0Franklin Ore Areche1Adnan Ahmed Sheikh2Amine Lahiani3Orléans Institute of Economics, Orléans University, CNRS, LEO, FRE, 2014, F-45067 Orléans, FranceProfessional School of Agroindustrial Engineering, National University of Huancavelica, Huancavelica 09001, PeruDepartment of Business Administration, Air University Multan Campus, Multan 60000, PakistanOrléans Institute of Economics, Orléans University, CNRS, LEO, FRE, 2014, F-45067 Orléans, FranceGreen energy is a crucial component in addressing expanding energy demands and combating climate change, but the possible negative repercussions of these technologies are frequently disregarded. Green energy’s deployment is tied to environmentally sustainable development goals (SDGs). It can only be achieved by scaling up the finance of investment that provides environmental benefits through new financial instruments and new policies, such as green banks, green bonds, community-based green funds, green central banking, etc. In an effort to address the issues with IPAT and ImPACT, this study employed the STIRPAT model approach, which is a proven framework for energy economics analysis. The author gathers yearly data spanning 2002–2018 for six ASEAN member countries with the aim of investigating the relationship between CO<sub>2</sub> emissions, green finance, energy efficiency, and the green energy index (GEX). After preliminary tests, the study employed the Westerlund test and Johansen Fisher test for long-term equilibrium and estimated the Granger causal links between variables using the generalized method of moments (GMM). The results indicate that green bonds are an effective technique for promoting green energy projects and considerably reducing CO<sub>2</sub> emissions. Therefore, governments should establish supporting policies with a long-term perspective to increase the investment of green energy projects related investment from private participants to ensure sustainable growth and address environmental challenges. This strategy may be appropriate during and after the COVID-19 period.https://www.mdpi.com/1996-1073/15/14/5068renewable energyenergy efficiencyASEANgreen economygreen finance |
| spellingShingle | Nihal Ahmed Franklin Ore Areche Adnan Ahmed Sheikh Amine Lahiani Green Finance and Green Energy Nexus in ASEAN Countries: A Bootstrap Panel Causality Test Energies renewable energy energy efficiency ASEAN green economy green finance |
| title | Green Finance and Green Energy Nexus in ASEAN Countries: A Bootstrap Panel Causality Test |
| title_full | Green Finance and Green Energy Nexus in ASEAN Countries: A Bootstrap Panel Causality Test |
| title_fullStr | Green Finance and Green Energy Nexus in ASEAN Countries: A Bootstrap Panel Causality Test |
| title_full_unstemmed | Green Finance and Green Energy Nexus in ASEAN Countries: A Bootstrap Panel Causality Test |
| title_short | Green Finance and Green Energy Nexus in ASEAN Countries: A Bootstrap Panel Causality Test |
| title_sort | green finance and green energy nexus in asean countries a bootstrap panel causality test |
| topic | renewable energy energy efficiency ASEAN green economy green finance |
| url | https://www.mdpi.com/1996-1073/15/14/5068 |
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