Role of Green Financing and Eco-Innovation for Energy Efficiency in Developed Countries: Contextual Evidence for Pre- and Post-COVID-19 Era
Following the environmental concerns such as global warming, climate change, and environmental degradation, scholars and policymakers discovered energy utilization as the key factor in these issues. Therefore, economies are paying more attention to green finance and eco-innovation to reduce energy u...
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2022-08-01
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| Series: | Frontiers in Energy Research |
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| Online Access: | https://www.frontiersin.org/articles/10.3389/fenrg.2022.947901/full |
| _version_ | 1811313817175457792 |
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| author | Hong Wu Zeeshan Fareed Elżbieta Wolanin Dominik Rozkrut Marzena Hajduk-Stelmachowicz |
| author_facet | Hong Wu Zeeshan Fareed Elżbieta Wolanin Dominik Rozkrut Marzena Hajduk-Stelmachowicz |
| author_sort | Hong Wu |
| collection | DOAJ |
| description | Following the environmental concerns such as global warming, climate change, and environmental degradation, scholars and policymakers discovered energy utilization as the key factor in these issues. Therefore, economies are paying more attention to green finance and eco-innovation to reduce energy usage and enhance energy efficiency. The prime objective of this study is to explore whether the mentioned variables exhibit any influence on the energy efficiency target achievement. In this sense, the current study explores the association of green finance and eco-innovation with energy intensity in the group of seven economies from 1990 to 2020. By using panel data approaches, this study employs diagnostic tests that confirm the heterogeneous slopes and the existence of panel cross-section dependence. Also, the cointegration tests validate the existence of a long-run equilibrium relationship between the variables. Based on the asymmetric distribution of the data, this study employs the method of moments quantile regression. The empirical results reveal that green finance and eco-innovation significantly reduce energy intensity across the selected quantiles. Control variables such as urban growth and trade openness also adversely affect energy intensity. However, economic growth is the only significant factor that enhances energy intensity. The results are robust as validated by the panel quantile regression and the Granger panel heterogenous causality test. Based on the findings, this study recommends that green finance be promoted and environmental-related technology innovation be encouraged to achieve the goal of energy efficiency in developed economies. This study also provides additional policies appropriate for environmental recovery. |
| first_indexed | 2024-04-13T11:00:23Z |
| format | Article |
| id | doaj.art-ccc41cf5905748c79b585af0795895ab |
| institution | Directory Open Access Journal |
| issn | 2296-598X |
| language | English |
| last_indexed | 2024-04-13T11:00:23Z |
| publishDate | 2022-08-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Energy Research |
| spelling | doaj.art-ccc41cf5905748c79b585af0795895ab2022-12-22T02:49:25ZengFrontiers Media S.A.Frontiers in Energy Research2296-598X2022-08-011010.3389/fenrg.2022.947901947901Role of Green Financing and Eco-Innovation for Energy Efficiency in Developed Countries: Contextual Evidence for Pre- and Post-COVID-19 EraHong Wu0Zeeshan Fareed1Elżbieta Wolanin2Dominik Rozkrut3Marzena Hajduk-Stelmachowicz4School of Management, Fujian University of Technology, Fuzhou, ChinaSchool of Economics and Management, Huzhou University, Huzhou, ChinaDepartment of Quantitative Methods, Faculty of Management, Rzeszow University of Technology, Rzeszow, PolandInstitute of Economics and Finance, University of Szczecin, Szczecin, PolandDepartment of Economics, Faculty of Management, Rzeszow University of Technology, Rzeszow, PolandFollowing the environmental concerns such as global warming, climate change, and environmental degradation, scholars and policymakers discovered energy utilization as the key factor in these issues. Therefore, economies are paying more attention to green finance and eco-innovation to reduce energy usage and enhance energy efficiency. The prime objective of this study is to explore whether the mentioned variables exhibit any influence on the energy efficiency target achievement. In this sense, the current study explores the association of green finance and eco-innovation with energy intensity in the group of seven economies from 1990 to 2020. By using panel data approaches, this study employs diagnostic tests that confirm the heterogeneous slopes and the existence of panel cross-section dependence. Also, the cointegration tests validate the existence of a long-run equilibrium relationship between the variables. Based on the asymmetric distribution of the data, this study employs the method of moments quantile regression. The empirical results reveal that green finance and eco-innovation significantly reduce energy intensity across the selected quantiles. Control variables such as urban growth and trade openness also adversely affect energy intensity. However, economic growth is the only significant factor that enhances energy intensity. The results are robust as validated by the panel quantile regression and the Granger panel heterogenous causality test. Based on the findings, this study recommends that green finance be promoted and environmental-related technology innovation be encouraged to achieve the goal of energy efficiency in developed economies. This study also provides additional policies appropriate for environmental recovery.https://www.frontiersin.org/articles/10.3389/fenrg.2022.947901/fullenergy intensitygreen financeeco-innovationurban growthtrade opennessmethod of moment quantile regression |
| spellingShingle | Hong Wu Zeeshan Fareed Elżbieta Wolanin Dominik Rozkrut Marzena Hajduk-Stelmachowicz Role of Green Financing and Eco-Innovation for Energy Efficiency in Developed Countries: Contextual Evidence for Pre- and Post-COVID-19 Era Frontiers in Energy Research energy intensity green finance eco-innovation urban growth trade openness method of moment quantile regression |
| title | Role of Green Financing and Eco-Innovation for Energy Efficiency in Developed Countries: Contextual Evidence for Pre- and Post-COVID-19 Era |
| title_full | Role of Green Financing and Eco-Innovation for Energy Efficiency in Developed Countries: Contextual Evidence for Pre- and Post-COVID-19 Era |
| title_fullStr | Role of Green Financing and Eco-Innovation for Energy Efficiency in Developed Countries: Contextual Evidence for Pre- and Post-COVID-19 Era |
| title_full_unstemmed | Role of Green Financing and Eco-Innovation for Energy Efficiency in Developed Countries: Contextual Evidence for Pre- and Post-COVID-19 Era |
| title_short | Role of Green Financing and Eco-Innovation for Energy Efficiency in Developed Countries: Contextual Evidence for Pre- and Post-COVID-19 Era |
| title_sort | role of green financing and eco innovation for energy efficiency in developed countries contextual evidence for pre and post covid 19 era |
| topic | energy intensity green finance eco-innovation urban growth trade openness method of moment quantile regression |
| url | https://www.frontiersin.org/articles/10.3389/fenrg.2022.947901/full |
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