Unleashing the Role of Green Finance, Clean Energy, and Environmental Responsibility in Emission Reduction

Abstract

Green finance (GFIN) has become a viable option for dealing with climate change in recent years. However, it is yet unknown how well it will affect low-carbon paths in recipient nations. As a result, the main goal of this study is to determine the causal relationship between clean energy (CENE), GFIN, and environmental responsibility (ERES) by using the innovative time-varying causality test on daily data from August 25, 2014, to September 12, 2021. The study is based on S&P Dow Jones Global Clean Energy, Green Bond, and Environmental and Social Indices. Adopting a time-varying technique should be trustworthy and resilient since the data exhibit consistent rising and negative trends. The findings demonstrate that GFIN helps to reduce carbon emissions. This research demonstrates the need to develop a thorough strategy to enhance ERES and GFIN by acquiring green technologies to achieve effective energy transition and sustainable development objectives.