Financial integration and renewable energy consumption in China: do education and digital economy development matter?

How does external debt and governance quality impact renewable energy consumption: novel policy insights from BRICS countries

Amidst global environmental reforms, the role of energy systems is under scrutiny to promote ecological welfare through low-carbon alternatives. Amongst the solutions, the role of renewable energy as a clean source has become popular to mitigate climate change. However, the impact of debt on renewable energy consumption remains limited in the economic literature. The debt initiatives provide funding for environmental initiatives primarily, while it is also credited as a barrier to limiting the growth of clean energy programs. Within such discussion, the current study extended the dialogue by examining how external debt impacts energy transition in Brazil, Russia, India, China, and South Africa (BRICS) economies in the presence of institutional quality, education expenditures, and banking development. Using the novel CS-ARDL, AMG, and CCEMG tests, the study results showed that external debt decreases renewable energy consumption, while institutional quality, educational expenditures, banking developments, and economic growth are essential elements of green energy developments. Based on these conclusions, this study provides novel policy guidelines to align BRICS energy and economic agendas.

Can the digital economy empower urban energy resource transition? A natural gas perspective

The diffusion effect of the digital economy (DEN) has become increasingly prominent, but few scholars have investigated the energy transition effect of China's DEN. To this end, this study takes 207 cities in China as the research object to explore the potential role of DEN development in boosting energy resource transition (ERT). The endogeneity and asymmetry between variables are also analyzed. We find that (i) China's urban DEN and ERT show a synchronized fluctuating upward trend from 2006 to 2019; (ii) both DEN and ERT show significant positive nexus; put differently, the rapid evolution of DEN can significantly help enhance the strength of ERT; and (iii) substantial heterogeneity exists at different quantiles. In 10th and 90th quantiles, the impacts of DEN on ERT are insignificant, and both DEN and ERT exhibit significant positive linkage in 25th, 50th, and 75th quantiles. To this end, we put forward corresponding policy recommendations to boost ERT from the perspective of DEN.

Green growth path dependence momentum under the prism of COP26: the role of financial deepening, ICT development, and export diversification

Financial deepening is important in resource allocation for more productive enterprises, leading to sustainable green growth. Moreover, rapid development in the digital economy and export diversification significantly affect green growth. From this perspective, our study explores the impact of financial deepening, ICT development, and export diversification on green growth in China's economies from 1996 to 2021. The study explores the linkage between financial deepening, ICT development, export diversification, and green growth by employing the nonlinear autoregressive distributed lag (NARDL) approach. The results obtained in the long run are as follows: positive shock in financial deepening brings positive change in green growth, whereas negative shock in financial deepening reduces green growth. In the long run, positive shock in ICT enhances green growth, but negative shock in ICT does not impact green growth. Moreover, positive shock in export diversification brings positive change in green growth, whereas negative shock in export diversification reports an insignificant impact on green growth. Based on findings, it is suggested that financial deepening, ICT development, and export diversification are conducive to sustainable green growth.

Renewable energy consumption - financial globalization-tourism nexus with nonlinearity and cross-sectional dependence during Asia's carbon-free transition

Adopting renewable energy consumption is one of the most important aspects of international efforts to combat climate change, improve energy security, and encourage the shift to a more robust and sustainable energy system. Therefore, the empirics and policymakers worldwide are searching for factors that can promote renewable energy consumption. This analysis intends to investigate the role of financial globalization and tourism on renewable energy consumption in Asia and sub-regions such as Central Asia, East Asia, South Asia, Southeast Asia, and West Asia. The analysis utilized the linear and nonlinear CS-ARDL methods. Long-run outcomes of the linear and nonlinear models confirm that a rise in financial globalization and tourism promotes renewable energy consumption in Asia and all sub-regions. However, the nonlinear model highlights that a fall in financial globalization hurts renewable energy consumption in Central and South Asian regions, and tourism only hurts renewable energy consumption in Asia. In addition, ICT, GDP, and GHG emissions help promote renewable energy consumption. These results suggest that Asian policymakers must increase collaboration in the financial sectors and promote sustainable tourism in the regions to promote renewable energy consumption.

Digital inclusion to enhance energy sustainability: public participation and environmental governance in the new media era to achieve energy sustainable goals

Renewable energy not only helps to safeguard the environment and slow down climate change but also supports economic growth and energy security. The significance of renewable energy sources is expanding as more people throughout the globe understand how important it is to switch to clean energy sources. Therefore, empirics are in search of the factors that can promote renewable energy production. This analysis investigates some of the novel determinants of renewable energy production, such as digital inclusion, public participation, and environmental governance, which have not been examined previously in any study. For empirical analysis, the study employs the ARDL and QARDL estimation techniques using Chinese data from 1998Q1 to 2021Q4. The analysis findings confirm that digital financial inclusion, ICT, and GDP are vital in boosting both short and long-run renewable production. Green investment, environmental governance, and carbon emissions also significantly and favourably impact long-run renewable energy production. In the Quantile ARDL model, digital financial inclusion is positively linked to renewable energy production at most of its quantiles in the short and long run, while the ICT, GDP, environmental governance, and carbon emissions are positively linked to renewable energy in most quantiles in the long-run only. The Wald test confirms the asymmetric impact for all variables in the long run, which implies that policymakers should consider the positive and negative changes in these factors while devising policies for enhancing renewable energy production.

Rural areas development and pro-environmental behavior in China: implications for rural development and planning

This research adds to the body of knowledge by examining the asymmetric link between rural development and pro-environmental behavior in rural China. Rural development is assessed via rural income and digital financial inclusion. We use linear and nonlinear autoregressive distributed lag (ARDL) models to assess short- and long-term effects. The linear analysis suggests that a rise in rural income and digital financial inclusion encourages long-term access to clean fuels and technologies (CFT) in rural areas, while they do not have any significant impact in the short run. On the other side, the nonlinear framework illustrates that a positive shock in rural income and digital financial inclusion encourages long-term access to CFT in rural areas. A negative shock in rural income reduces long-term access to CFT in rural areas, and a negative shock in digital financial inclusion does not significantly impact access to CFT. However, in the short run, only the estimates of rural income are significant, while the estimates attached to digital financial inclusion are insignificant, implying that a rise in rural income increases access to CFT and a fall in rural income reduces access to CFT. Thus, government should encourage collaboration between private sector and civil society organizations to promote sustainable rural development and pro-environmental behavior.

Role of digital economic development in environmental transition of renewable energy sector of China

This research looks at how China's expanding digital economy influences the country's efforts to green its renewable energy sector. Regression tests, endogeneity tests, correlation analysis, and robustness analysis are used to investigate the relationship between digital economic development and environmental consequences in the renewable energy sector. The results of the research show a significant positive association between the expansion of the digital economy and the transition to a more sustainable energy model in the clean energy sector. Regression studies reveal that the growth of the digital economy is positively correlated with a number of environmental indicators, including the generation of renewable energy, energy efficiency, and the decrease of carbon emissions. Endogeneity analyses have shown a causal relationship between digitization and environmental benefits in the renewable energy sector. The adoption of different digital technologies is strongly correlated. Robustness study, which ensures the validity and reliability of the collected results, further supports the importance of digital economic development in driving the environmental transformation of the renewable energy sector. The study's findings have significant implications for public policy. Funding digital infrastructure, fostering partnerships between the public and private sectors, standardizing data formats and interoperability, strengthening cybersecurity safeguards, and developing pro-digital policies and regulations are all important steps that policymakers can take to promote the widespread adoption of digital technologies.

Factors determining renewable energy demand behavior: service sector development, private sector involvement, and human resource management perspective

Energy is considered the engine of growth due to its indispensable role in fueling economic activities. However, energy is one of the primary contributors to environmental degradation. In addition, conventional energy sources are depleting quickly due to the over-consumption of these sources, raising the issue of energy security. The solution to these above-stated issues is increasing renewable energy consumption. There is evidence that service sector development, private sector development, and human resource management help improve energy efficiency; however, their role in increasing renewable energy demand is debatable. This analysis fills the vacuum by examining the effect of service sector development, private sector development, and human resource management on renewable energy demand across four major regions: Asia, America, Africa, and Europe, spanning from 1998 to 2021. The analysis depends on the CS-ARDL model that can estimate the short and long-run results by addressing the model's cross-sectional dependence. The model estimates confirm that service sector development, private sector, and financial development escalate the long-run renewable energy consumption in all regions except Africa. Human resource enhances renewable energy consumption globally, in Europe and America. Likewise, GDP and carbon emissions stimulate long-run renewable energy consumption in all regions; however, trade only encourages renewable energy consumption globally and in Europe. The service sector development, financial development, carbon emissions, and trade significantly encourage short-run renewable energy consumption in one or two regions. In contrast, the GDP positively and significantly connects to the short-run renewable energy consumption in almost all regions. Therefore, policymakers should focus on increasing the role of human resources, services, and private sector development in the economy.

Unleashing the power of emergency response: controlling natural disasters by addressing environmental risk

The primary focus of the analysis is to investigate the impact of emergency response management and environmental risk on natural disasters by controlling the variables of national income and financial development. To investigate the model empirically, we have employed the quantile autoregressive distributed lag model that estimates the short- and long-run estimates across various quantiles. The long-run estimates of emergency response management are negative and significant only at higher quantiles, i.e., from 60 to 95th quantiles. In the short run, emergency response management's estimated coefficients are negative and significant from 70 to 95th quantiles. Environmental risk shows a significant positive correlation with natural disasters across quantiles, while national income and financial development decrease natural disasters in the long run. Furthermore, we observed the asymmetric impact of emergency response management on natural disasters in both the short and long run.

Financial fragility, human resource management, and transition to renewable energy in Asian economies: a comparative analysis

The main hurdle in deploying renewable energy projects is the high initial cost, making it difficult for businesses and individuals to afford it. The fragility of the financial sector and human resource management further slows the pace of renewable energy demand. Therefore, we aim to investigate the impact of financial fragility and human resource management on renewable energy consumption over time horizon 1997-2020. To that end, the analysis employed the ARDL-PMG model. For Asia as a whole and all other sub-regions, including South East Asia, East Asia, South Asia, and Western Asia, the estimates for bank non-performing loans are notably negative. In general, these findings imply that a rise in financial fragility significantly reduces renewable energy consumption in the long run. In the short run, the estimates attached to both bank non-performing loans and bank costs are negatively significant in Asia and sub-regions of Western Asia only. The results for the human resources show that it exerts a significant and positive influence on renewable energy demand in Asia as a whole, South Asia, East Asia, and Western Asia. The estimates attached to human resources are statistically insignificant in all models in the short run. In the end, some important public strategies and their implementations have been discussed.

Green growth strategies in Asia: unleashing the heterogeneous asymmetry of ICT capital, financial fragility, environmental policy stringency, and education

Financial fragility, ICT capital, environmental policy stringency, and education are the main factors that have also gained popularity regarding their impact on green growth. This study examines the impact of financial fragility, ICT capital, environmental policy stringency, and education on green growth. For analyzing the short- and long-run estimates, we have applied the panel QARDL model. The results of the panel QARDL model highlight that the estimates of non-performing bank loans and bank costs are negatively significant in both the short and long run, implying that financial fragility hurts green growth in the short and long run. Similarly, the estimated coefficients of the internet (mobile) and education estimates are positively significant in the short and long run, confirming that ICT capital and education are causing green growth, while environmental policy stringency promotes green growth only in the long run. Regarding the asymmetric effects of all the factors on green growth, the Wald test only confirms asymmetric effects in the long run. The study offers several significant recommendations for sustainable green development policies.

Diffusion of environmental technology innovation through the lens of banking sector performance and human resource management: an influential step towards environmental sustainability

Environmental technology innovations are widely recognized as the most suitable option to achieve sustainable and green development. Since banks and other financial institutions offer essential funding for investments in environmental technology projects, the banking sector and human resources are essential to developing and promoting environmental technology innovation. This study aims to investigate the impact of banking sector performance and human resources on environmental technology innovation in China, utilizing the ARDL method. The research focuses on the period spanning from 1996 to 2021. The outcomes of the ARDL model approve that short- and long-term banking sector performances positively impact environmental technology innovation in China. Among the four proxies for the banking sector's performance, market capitalization, bank deposits, and bank Z-score are substantially and favorably associated with long-term environmental technology innovation in China. However, only the banking sector's performance fosters environmental technology innovation in the short term; all other measures of banking sector performance are insignificant. Human resource positively impacts green innovation in China in the long run. Furthermore, China's long-term GDP growth and environmental pressures support environmental technology innovation. Therefore, policymakers should provide specific incentives to encourage human resource management and financial institutions that lead to the advancement of environmental technology innovation.

Energy technology innovation through the lens of the financial deepening: Financial institutions and markets perspective

This paper examines the impact of financial deepening on energy technology green innovation over the period 1996 to 2020. Utilizing the nonlinear QARDL technique, we assess the asymmetric short and long-term impacts across various quantiles. The research employs two measures of financial deepening, namely financial institution deepening (FID) and financial market deepening (FMD). The findings reveal that a positive change in the FID causes energy green innovation to rise, while a negative change in the FID causes energy green innovation to fall in the long run at most quantiles. Further, we find that the rise in the FMD help improves energy green innovation; however, the fall in the FMD does not significantly impact energy green innovation at all quantiles. Based on the findings, our research will help policymakers to develop valuable policies for financial deepening to enhance energy green innovation.

Environmental higher education-renewable energy consumption nexus in China: pathways toward carbon neutrality

Pro-environmental behavior has a significant role to play in environmental sustainability. There has been little research done on environmental higher education-renewable energy consumption nexus. This study examines the impact of environmental higher education on renewable energy consumption in China from 1997 to 2021. The ARDL results show that higher environmental education enhances renewable energy consumption in long run. Findings also show that internet usage and economic development encourage renewable energy consumption in the long run. However, financial development and internet usage have a short-term impact on renewable energy consumption in China. The QARDL estimates are robust, and the finding shows that environmental higher education has a positive impact on renewable energy consumption in short and long run at higher quantiles. The empirical findings have environmental implications for China in terms of achieving long-term environmental sustainability by embracing patterns of pro-environmental behavior.

Does financial globalization promote renewable energy investment? Empirical insights from China

The increasing integration of financial markets worldwide has brought about significant changes in the investment landscape for renewable energy. However, the connection between financial globalization and renewable energy investment has gotten relatively little consideration. As a result, the analysis's main goal is to determine the asymmetric nexus between financial globalization and renewable energy investment in China, covering the period from 1995 to 2021. The influence of financial globalization on investments in renewable energy has been calculated using the linear and non-linear ARDL frameworks. Both methods analyze the short-run and long-run relationships between financial globalization and renewable energy investment. The linear model highlights the favorable influence of financial globalization on renewable energy investment in the short and long run. On the other side, the non-linear model implies that a rise in financial globalization increases investment in renewable energy in the short and long run, and the fall in financial globalization cause the renewable energy investment to fall only in the long run. In addition, national income help promote renewable energy investment in both the short and long run in linear and non-linear models. Therefore, encouraging international cooperation to develop renewable energy projects through public-private partnerships can increase investment flows and provide greater access to financing.

Evaluating policy-driven capital for renewable energy investments in the presence of cross-sectional dependence: perspectives from financial institutions and markets

Access to financing is crucial for renewable energy projects due to their high initial capital costs and long payback times. In this regard, well-performing financial institutions and markets can provide the necessary capital for investments in renewable energy sources. This study emphasizes the impact of financial institutions and markets on renewable energy investment using data from various regions (Asia, Africa, Europe, and America). The CS-ARDL model is employed for analysis during 1998-2021. The findings of the CS-ARDL highlight that financial institutions, financial markets, greenhouse gas emissions, and GDP help promote investments in renewable energy in the long run for all samples, including global, Asian, American, African, and European. However, the estimates of ICT and Trade have insignificant effects on investments in renewable energy. In the short run, most of the factors do not show any significant effect on renewable energy investments. Therefore, policymakers should try to increase the role of financial institutions and markets in promoting renewable by inducing them to ease their policies for grant of loans to invest in renewable energy sources.

Investigating the environmental externalities of digital financial inclusion and the COVID-19 pandemic: an environmental sustainability perspective

Financial inclusion enhances economic growth by facilitating businesses and individuals to access financial resources. Financial inclusion also contributes to environmental sustainability; however, very few studies have explored the link between financial inclusion and the environment. Also, the impact of the COVID-19 pandemic on environmental performance remains unexplored. From this perspective, this study probes the objective of whether financial inclusion and environmental performance co-move in COVID-19 in highly polluted economies. This objective is tested with the help of 2SLS and GMM approaches. The study also gets assistance from a panel quantile regression approach for empirical tasks. The results show that financial inclusion and the COVID-19 pandemic have a negative impact on CO2 emissions. Based on these findings, the study suggests that highly polluted economies should promote financial inclusion and assimilate environmental policies with financial inclusion policies to attain environment-related goals.

Examining the role of tourism industry in green economic and environmental performance: does structural change matter in Asia?

Tourism has become an increasingly significant contributor to economic growth in Asia. However, the rapid expansion of the tourism industry has also raised concerns about its impact on the environment and economic sustainability. Meanwhile, the structural transformation of economies in Asia has also been a major factor in shaping the region's environmental and economic performance. Thus, the present study aims to explore the impact of the tourism industry and structural change on green economic and environmental performance in Asia. Limited empirical evidence exists on the impact of tourism industry and structural change on CO₂ emissions and green growth. The objective of this current study is to examine how tourism industry and structural change impact green economic and environmental performance over the period 1993 to 2020. For analyzing short- and long-run results across different quantiles, we have employed a nonlinear QARDL model that can provide estimates across different quantiles. The findings of the CO₂ emissions model imply that long-term improvements in tourism and structural changes significantly reduce CO₂ emissions. In contrast, the long-term negative changes in tourism and structural changes increase CO₂ emissions. In the green growth model, long-term improvements in tourism and structural changes significantly improve green growth; however, the long-term decline in tourism and structural changes significantly reduce green growth. Moreover, the control variable of ICT reduces CO₂ emissions and improves green growth, and energy consumption increases CO₂ emissions and reduces green growth.

Toward green growth in China: The role of green finance investment, technological capital, and renewable energy consumption

In recent times, the concept of green growth has emerged, which has a critical part to play in controlling the environmental impact of economic activities. In this analysis, we have explored three determinants of green growth: green finance investment, technological capital, and renewable energy. Moreover, this study focuses on the asymmetric impact of green finance investment, technological progress, and renewable energy on green growth in China during the period spanning from 1996 to 2020. To get the asymmetric short and long-run estimates across various quantiles, we have employed the nonlinear QARDL. The long-run estimates attached to a positive shock in green finance investment, renewable energy demand, and technological capital are positively significant at most quantiles. While, the long-run estimates attached to a negative shock in green finance investment, technological capital, and renewable energy demand are insignificant at most quantiles. In general, the findings suggest that the rise in green financial investment, technological capital, and renewable energy demand positively impacts green growth in the long run. The study offers a range of significant policy recommendations that can contribute to the advancement of sustainable green growth in China.

Country risk and its impact on renewable energy investment in highly polluted economies

The country's risk may significantly impact every sector of the economy, and the energy sector is no exception. However, no past study has empirically tested the relationship between country risk and renewable energy investment. Therefore, this study is an effort to investigate the relationship between country risk and renewable energy investment in highly polluted economies. We have employed different econometric techniques to analyze the relationship between renewable energy investment and country risk, including the OLS, 2SLS, GMM, and panel quantile regressions. The estimate of country risk influence renewable energy investment negatively in OLS, 2SLS, and GMM models. Similarly, the country's risk negatively impacts the renewable energy investment from the 10th to 60th quantiles in the panel quantile regression model. Moreover, the GDP, CO2 emissions, and technological development help promote renewable energy investment in OLS, 2SLS, and GMM models, while the human capital and financial development do not significantly impact the renewable energy investment. Furthermore, in the panel quantile regression model, the GDP and CO2 emission estimates are positively significant almost at all quantiles, and the estimate of technological development and human capital are positively significant at higher quantiles only. Therefore, the authorities in highly polluted economies should consider the respective countries' risk considerations while formulating rules about renewable energy.

Eco-innovation and environmental entrepreneurship: steps towards business growth

Eco-innovations are widely considered the best possible solution to fight the menace of environmental degradation. Therefore, in this analysis, we try to examine the impact of eco-innovations and environmental entrepreneurship on SME performance in China from 1998 to 2020. In order to get the short- and long-run estimates, we have employed the QARDL model that can estimate across various quantiles. The findings of the QARDL model confirm the positive impact of eco-innovations in increasing the number of SMEs in the long run, as the estimates attached to eco-innovations are positive and significant across most quantiles. Similarly, the estimates attached to financial development and institutional quality are positively significant across most quantiles. However, in the short run, the results are inconclusive for almost all variables. As far as the asymmetric impact of eco-innovations on SMEs is concerned, it is confirmed both in the short and long run. However, the asymmetric impacts of financial development and institutional quality on SMEs are only confirmed in the long run. Based on the results, important policy suggestions are discussed.

Financial development-green growth nexus in China: the role of technological capital

It is undeniable fact that financial development and technological capital are fundamental determinants that help in the achievement of green growth. This is important to explore the nexus between financial development, technological capital, and green growth in China. This study utilizes the quantile autoregressive distributed lag (QARDL) approach for exploring the effect of financial development and technological capital on green growth. The study measures financial development through financial market development and financial institutions development. The study concludes that technological progress and both measures of financial development produce a positive impact on green growth in China in most quantities in long run. The study provides various important policy suggestions that help in upgrading sustainable green growth in China.

Digital financial inclusion and environmental entrepreneurship: evolution of state legal environmental responsibility in China

This investigation attempts to look at how digital finance and environmental taxes affect environmental entrepreneurship. We have used the QARDL model to evaluate the short- and long-run estimations. The main findings of the QARDL model confirm that digital finance is vital in promoting the environmental entrepreneurship model in the long run. In contrast, in the short run, digital finance does not significantly impact environmental entrepreneurship. Moreover, environment-related taxes, environmental innovations, and economic development promote environmental entrepreneurship in the long run across most quantiles. However, in the short run, environment-related taxes and economic development do not exert any significant impact on environmental entrepreneurship in almost all quantiles, while environmental innovation promotes environmental entrepreneurship in most quantiles. Further, asymmetric effects of digital finance (ATM and debit card), environment-related taxes, environmental innovations, and economic development are confirmed in the long run; in the short run, asymmetric effects are observed in the case of environmental innovation in both the models. Following the results, we suggest that the public and private sectors should do more financing to promote ecopreneurship in society. Moreover, more taxes should be imposed on entrepreneurs who do not adopt green practices.

Evaluating the impacts of digitalization, financial efficiency, and education on renewable energy consumption: new evidence from China

Policymakers around the globe have used various options for controlling CO2 emissions, among which increasing renewable energy consumption has proved to be the most viable. Consequently, this research attempts to look into the effects of financial efficiency, education, and digitization on renewable energy consumption in China from 1994 to 2020. To estimate the short- and long-run relationship between the variables, we have utilized the QARDL approach. The results suggest that the ICT, financial institutions and market development, education, GDP, and CO2 emissions all help improve renewable energy consumption in China in the long run. In the short run, the ICT, financial institutions and markets, education, GDP, and CO2 emissions all proved to be beneficial in increasing renewable energy consumption. In order to test whether our independent variables have a symmetric or asymmetric impact on renewable energy consumption, the Wald test is applied, which confirms the long-run nonlinear impact of ICT, financial institutions and markets, education, GDP, and CO2 emissions on renewable energy consumption, while the short-run asymmetric impacts are confirmed for a financial institution and GDP only. Therefore, governments should reinforce the amalgamation of digitalization, financial efficiency, and education while formulating policies for renewable energy consumption.

Effect of environmental taxes on environmental innovation and carbon intensity in China: an empirical investigation

Environmental taxes are deemed to be an important carbon mitigating factor and also encourage the producers to adopt environmentally friendly technologies. Therefore, the main objective of the analysis is to evaluate the environmental taxes on environmental innovations and carbon intensity in China. The novel quantile autoregressive distributed lag (QARDL) is applied to investigate the model empirically. From the results, we confer that the short and long run estimated coefficients of environmental taxes are positive and significant at most quantiles in the environmental innovation model, implying that the higher the rate of environmental taxes, the higher the rate of environment-related innovations. However, the estimates of environmental taxes are significant and negative in both short and long run at more than half quantiles in the carbon emissions model, suggesting the positive role of environmental taxes in reducing carbon emissions. In general, our findings imply that an increase in environment-related taxes helps reduce carbon intensity and promote environmental innovation in China. The study suggests that policymakers in China should promote environmental innovation and expand the environmental tax base to achieve the objective of carbon neutrality.

Examining the potential role of ICT diffusion on green growth: does financial development matter in BRICS economies?

Green growth refers to the economic growth strategy, which is less detrimental to natural assets, predominantly the environment. Therefore, the main motive of investment and innovation activities should be to attain economic growth while sustainably utilizing natural assets. In this regard, we aim to explore whether ICT diffusion and financial development matter for attaining green economic growth in BRICS economies. The long-run autoregressive distributed lag (ARDL) results show that internet development exerts a positive influence on green growth in four BRICS economies excluding India. However, the long-run estimates of mobile cellular subscriptions are positive only in Russia and China. On the other side, the increase in bank credit and insurance premium also contributes to the long-run green economic growth in almost all BRICS economies. Policymakers should focus on the increased use of ICT in the economy that would replace the physical resources in the economy with information resources. Besides, financial services should be provided to individuals and small and medium enterprises involved in green consumption and production activities.

How do financial fragility and ICT penetration affect renewable energy consumption and green growth in top-polluting economies?

Green growth is an extension of traditional economic growth. Financial fragility and ICT penetration are important pillars of green growth sustainability. However, very limited studies have explored this association and provided conflicting results. Thus, our study intends to fill this vacuum by exploring the impact of financial fragility and ICT penetration on renewable energy consumption and green growth for the top five polluting economies over the period 1996-2020. In this study, financial fragility is measured by bank costs and bank non-performing loans. Panel ARDL technique is used to find out long-run and short-run results estimates. Financial fragility reduces renewable energy consumption and green growth in the long run. However, internet penetration enhances renewable energy consumption and green growth in the long run. Our findings suggest imperative policy implications for the green economy.

Financial deepening, financial innovation, and education as new determinants of green growth in China

To address the issue of global warming, the agreed solution is to reduce GHG emissions. The plausible solution to reduce GHG emissions is to follow a green growth strategy that refers to the complete decoupling of economic growth from its environmental impact through the sustainable utilization of natural resources. Consistent with this view, this study investigates the impact of financial deepening, financial innovation, and education on green growth in China from 1996 to 2020. The empirical analysis of the model is conducted through quantile ARDL. The long-run estimated coefficients of financial institution deepening are positively significant across most quantiles, whereas the estimated coefficients of financial market deepening are positively significant in almost half quantiles. These results imply that the financial deepening of both financial markets and institutions can positively contribute to green growth. However, the estimates of financial innovations are significant and positive in higher quantiles, implying that financial innovation only contributes to the green when the rate of financial innovation is too high. The estimates of education are positively significant at higher quantiles. Our study highlights various policy suggestions that are aimed at instigating sustainable green growth in China.