The Nexus Between Green Finance, Green Energy, Green Technology, and Fintech: A Pathway to Sustainable Development

Year 2025, Issue: 56, 264 - 277, 30.04.2025

Emre Esat Topaloğlu , Tuğba Nur , İlhan Ege

https://doi.org/10.52642/susbed.1617433

Abstract

Green finance, energy, technology, and fintech are essential drivers of a sustainable environment and the promotion of sustainable development. This study analyzes the causal relationships among green finance, green energy, green technology, and fintech indices. To ensure the reliability of our findings, we utilize daily data from reputable sources such as S&P Green Bond for green finance, S&P Global Clean Energy for green energy, Renewable Energy and Clean Technology for green technology, and S&P Kensho Future Payments for fintech indices. Following our objective, a Vector Autoregressive Regression (VAR) model is constructed first, followed by Granger causality and impulse response analysis. The causality results indicate bidirectional causal relationships between green finance and green energy and green technology, as well as one-way causal relationships from green finance to green technology and from green energy to green technology. Impulse response analysis shows that the green energy index is a significant shock transmitter to the green bond index. In contrast, the green technology index is a significant shock transmitter to the fintech index. The findings suggest that capital support for green finance is vital for promoting green energy and technology and supporting sustainable development.

Keywords

Green Finance , Fintech , Green Bond , Green Technology , Green Energy , Sustainable Development

Yeşil Finans, Yeşil Enerji, Yeşil Teknoloji ve Fintek Arasındaki Bağlantı: Sürdürülebilir Kalkınmaya Giden Yol

Abstract

Green finance, energy, technology, and fintech are essential drivers of a sustainable environment and the promotion of sustainable development. This study analyzes the causal relationships among green finance, green energy, green technology, and fintech indices. To ensure the reliability of our findings, we utilize daily data from reputable sources such as S&P Green Bond for green finance, S&P Global Clean Energy for green energy, Renewable Energy and Clean Technology for green technology, and S&P Kensho Future Payments for fintech indices. Following our objective, a Vector Autoregressive Regression (VAR) model is constructed first, followed by Granger causality and impulse response analysis. The causality results indicate bidirectional causal relationships between green finance and green energy and green technology, as well as one-way causal relationships from green finance to green technology and from green energy to green technology. Impulse response analysis shows that the green energy index is a significant shock transmitter to the green bond index. In contrast, the green technology index is a significant shock transmitter to the fintech index. The findings suggest that capital support for green finance is vital for promoting green energy and technology and supporting sustainable development.

Keywords

Yeşil Finans , Fintek , Yeşil Tahvil , Yeşil Teknoloji , Yeşil Enerji , Sürdürülebilir Kalkınma

References

• Adekoya, O. B., Badmus, J. O., and Al‐Faryan, M. A. S. (2025). Geopolitical Risks and the Predictability of Green Investments: A GARCH‐Based Mixed Data Sampling Approach. International Journal of Finance & Economics.
• Al-Kasasbeh, O., Al-Khazaleh, S. M., & Alsheikh, G. (2024). The dynamic impact of environmental sustainability, green finance, and FinTech on energy efficiency in Middle Eastern economies. International Journal of Energy Economics and Policy, 14(4), 574-579.
• Assaf, A., Demir, E., and Mokni, K. (2024). Exploring connectedness among cryptocurrency, technology communication, and FinTech through dynamic and fractal analysis. Finance Research Letters, 63, 105260.
• Balsalobre-Lorente, D., Topaloglu, E. E., Nur, T., and Evcimen, C. (2023). Exploring the linkage between financial development and ecological footprint in APEC countries: A novel view under corruption perception and environmental policy stringency. Journal of Cleaner Production, 414, 137686.
• Bilal, A., Li, X., Zhu, N., Sharma, R., and Jahanger, A. (2021). Green technology innovation, globalization, and CO2 emissions: recent insights from the OBOR economies. Sustainability, 14(1), 236.
• Cao, L. (2023). How green finance reduces CO2 emissions for green economic recovery: Empirical evidence from E7 economies. Environmental Science and Pollution Research, 30(2), 3307-3320.
• Ceron, B. M., and Monge, M. (2023). Financial technologies (FINTECH) revolution and COVID-19: Time trends and persistence. Review of Development Finance, 13(1), 58-64.
• Chatziantoniou, I., Abakah, E. J. A., Gabauer, D., & Tiwari, A. K. (2022). Quantile time–frequency price connectedness between green bond, green equity, sustainable investments and clean energy markets. Journal of Cleaner Production, 361, 132088.
• Chen, H. (2023). Fintech and investment risk of digital finance: mediating role of clean energy and green bonds through the dynamics of spill over. Environmental Science and Pollution Research, 30(34), 82286-82296.
• Chen, H., Yi, J., Chen, A., Peng, D., and Yang, J. (2023). Green technology innovation and CO2 emission in China: Evidence from a spatial-temporal analysis and a nonlinear spatial Durbin model. Energy Policy, 172, 113338.
• Darehshiri, M., Asl, M. G., Adekoya, O. B., and Shahzad, U. (2022). Cross-spectral coherence and dynamic connectedness among contactless digital payments and digital communities, enterprise collaboration, and virtual reality firms. Technological Forecasting and Social Change, 181, 121764.
• Dias, R., and Silva, A. F. (2023). Revolutionizing Green Portfolio Rebalancing: Sustainable Wealth through Innovations in Green Energy.
• Dickey, D. A., and Fuller, W. A. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American statistical association, 74(366a), 427-431.
• Dong, X., and Huang, L. (2024). Exploring ripple effect of oil price, fintech, and financial stress on clean energy stocks: A global perspective. Resources Policy, 89, 104582.
• Ege, İ, Nur, T., Topaloglu E.E. (2023). İklim ile İlişkili Riskin Yeşil Tahvil ve Temiz Enerji Endekslerine Etkisi. V. International Scientific Conference of Economics and Management Researchers
• Fuentes, F., and Herrera, R. (2020). Dynamics of connectedness in clean energy stocks. Energies, 13(14), 3705.
• Granger, C. W. J. (1969). Investigating causal relations by econometric models and cross-spectral models. Econometrica, 37, 424-438.
• Granger, C.W. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica: Journal of the Econometric Society, 424-438.
• Guo, M., Nowakowska-Grunt, J., Gorbanyov, V., and Egorova, M. (2020). Green technology and sustainable development: Assessment and green growth frameworks. Sustainability, 12(16), 6571.
• Hu, Y., & Jin, Y. (2023). Unraveling the influence of green bonds on environmental sustainability and paving the way for sustainable energy projects in green finance. Environmental Science and Pollution Research, 30(52), 113039-113054.
• Lee, J. W. (2020). Green finance and sustainable development goals: The case of China. Journal of Asian Finance Economics and Business, 7(7), 577-586.
• Li, J., Dong, K., Taghizadeh-Hesary, F., and Wang, K. (2022). 3G in China: how green economic growth and green finance promote green energy?. Renewable Energy, 200, 1327-1337.
• Lin, B., and Ma, R. (2022). Green technology innovations, urban innovation environment and CO2 emission reduction in China: Fresh evidence from a partially linear functional-coefficient panel model. Technological Forecasting and Social Change, 176, 121434.
• Liu, J. (2024). Analyzing the Co-movement of FinTech market efficiency and oil Resource efficiency: An Input-Output study. Resources Policy, 90, 104668.
• Liu, N., Liu, C., Xia, Y., Ren, Y., and Liang, J. (2020). Examining the coordination between green finance and green economy aiming for sustainable development: A case study of China. Sustainability, 12(9), 3717.
• Liu, Y., and Wang, K. (2024). Asymmetric impacts of coal prices, fintech, and financial stress on clean energy stocks. Resources Policy, 92, 104954.
• Madaleno, M., Dogan, E., and Taskin, D. (2022). A step forward on sustainability: The nexus of environmental responsibility, green technology, clean energy and green finance. Energy Economics, 109, 105945.
• Meo, M. S., and Abd Karim, M. Z. (2022). The role of green finance in reducing CO2 emissions: An empirical analysis. Borsa Istanbul Review, 22(1), 169-178.
• Mohammed, K. S., Serret, V., Jabeur, S. B., and Nobanee, H. (2024). The role of artificial intelligence and fintech in promoting eco-friendly investments and non-greenwashing practices in the US market. Journal of Environmental Management, 359, 120977.
• Nur, T. and Ege, İ. (2022). Yeşil Tahvil ve Pay Piyasası Arasındaki İlişkinin Zaman Serisi Analizleri ile Araştırılması. Muhasebe ve Finansman Dergisi, (94), 185-206.
• Nur, T., Sahin, S., Topaloglu, E. E., and Ege, I. (2023). Evaluating the impact of climate risk on financial access and stability in G20 countries: A panel data approach (2006-2017). J. Corp. Gov. Insur. Risk Manag., 10(2), 125-139.
• Pang, L., Zhu, M. N., and Yu, H. (2022). Is green finance really a blessing for green technology and carbon efficiency?. Energy Economics, 114, 106272.
• Phillips, P. C. and Perron, P. (1988). Testing for a unit root in time series regression. Biometrika, 75(2), 335-346.
• Rao, A., Lucey, B., Kumar, S., and Lim, W. M. (2023). Do green energy markets catch cold when conventional energy markets sneeze?. Energy Economics, 127, 107035.
• Sharif, A., Kartal, M. T., Bekun, F. V., Pata, U. K., Foon, C. L., and Depren, S. K. (2023). Role of green technology, environmental taxes, and green energy towards sustainable environment: insights from sovereign Nordic countries by CS-ARDL approach. Gondwana Research, 117, 194-206.
• Sharif, A., Saqib, N., Dong, K., and Khan, S. A. R. (2022). Nexus between green technology innovation, green financing, and CO2 emissions in the G7 countries: the moderating role of social globalisation. Sustainable Development, 30(6), 1934-1946.
• Sheenan, L., Schweers, K., & Klein, T. (2024). Interactions between sustainable bonds, renewable energy and other financial markets: A macroprudential perspective. Energy Economics, 138, 107839.
• Sims, C. A. (1980). Macroeconomics and reality. Econometrica: Journal of the Econometric Society, 1-48.
• Sinha, A., Mishra, S., Sharif, A., and Yarovaya, L. (2021). Does green financing help to improve environmental & social responsibility? Designing SDG framework through advanced quantile modelling. Journal of Environmental Management, 292, 112751.
• Sreenu, N. (2024). The impact of Fintech and green bonds on the Indian renewable energy production. Renewable Energy, 237, 121807.
• Taghizadeh-Hesary, F., Yoshino, N., and Phoumin, H. (2021). Analyzing the characteristics of green bond markets to facilitate green finance in the post-COVID-19 world. Sustainability, 13(10), 5719.
• Tan, Q., Yasmeen, H., Ali, S., Ismail, H., and Zameer, H. (2023). Fintech development, renewable energy consumption, government effectiveness and management of natural resources along the belt and road countries. Resources Policy, 80, 103251.
• Tiwari, A. K., Abakah, E. J. A., Shao, X., Le, T. L., & Gyamfi, M. N. (2023). Financial technology stocks, green financial assets, and energy markets: A quantile causality and dependence analysis. Energy Economics, 118, 106498.
• Tiwari, S. (2024). Impact of Fintech on natural resources management: How financial impacts shape the association?. Resources Policy, 90, 104752.
• Udeagha, M. C., and Ngepah, N. (2023). The drivers of environmental sustainability in BRICS economies: do green finance and fintech matter?. World Development Sustainability, 3, 100096.
• UN (United Nations) (2017). Bridging Climate Ambition and Finance Gaps. UN Climate Press.
• UNEP (2001). Finance Initiatives. Climate Change Working Group Position Paper. https://www.unepfi.org/fileadmin/events/2001/cop7/ccwg_position_paper_2001.pdf.
• Usman, O. (2023). Renewable energy and CO2 emissions in G7 countries: does the level of expenditure on green energy technologies matter?. Environmental Science and Pollution Research, 30(10), 26050-26062.
• Wang, K. H., Zhao, Y. X., Jiang, C. F., and Li, Z. Z. (2022). Does green finance inspire sustainable development? Evidence from a global perspective. Economic Analysis and Policy, 75, 412-426.
• Wang, S., & Wang, C. (2023). How do Fintech and green bonds ensure clean energy production in China? Dynamics of green investment risk. Environmental Science and Pollution Research, 30(57), 120552-120563.
• Zhang, S., and Chen, K. (2023). Green finance and ecological footprints: Natural resources perspective of China’s growing economy. Resources Policy, 85, 103898.
• Zhang, Y., and Umair, M. (2023). Examining the interconnectedness of green finance: an analysis of dynamic spillover effects among green bonds, renewable energy, and carbon markets. Environmental Science and Pollution Research, 30(31), 77605-77621.
• Zhang, Y., and Umair, M. (2023). Examining the interconnectedness of green finance: an analysis of dynamic spillover effects among green bonds, renewable energy, and carbon markets. Environmental Science and Pollution Research, 30(31), 77605-77621.