The Granger-Causality between Green Finance and Environmental Sustainability: Evidence from G7 Countries

Yıl 2024, Cilt: 5 Sayı: 2, 50 - 56, 30.12.2024

Ferhat Çıtak , Safa Hoş

Öz

Green finance plays a pivotal role in advancing sustainable development by channeling investments into renewable energy, sustainable agriculture, and energy-efficient technologies, thereby reducing greenhouse gas emissions and promoting resource conservation. This study investigates the causal relationship between green finance (GF) and environmental sustainability (ES) in G7 countries (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) over the period 1990–2021. The results highlight a bidirectional causality between GF and ES in Germany and the USA, indicating mutual reinforcement between green finance and environmental sustainability. For Canada and Japan, the analysis identifies unidirectional causality from GF to ES, suggesting that green finance drives improvements in environmental sustainability. Conversely, no causal relationships are observed for France, Italy, and the UK, pointing to heterogeneity in the GF-ES nexus across nations.

Anahtar Kelimeler

Green Finance, Environmental Sustainability, G7 Countries, VAR Model

Yeşil Finans ve Çevresel Sürdürülebilirlik Arasındaki Granger Nedenselliği: G7 Ülkelerinden Kanıtlar

Öz

Yeşil finans, yenilenebilir enerji, sürdürülebilir tarım ve enerji verimliliği sağlayan teknolojilere yapılan yatırımları yönlendirerek sera gazı emisyonlarını azaltmada ve kaynak korumayı teşvik ederek sürdürülebilir kalkınmayı ilerletmede önemli bir rol oynamaktadır. Bu çalışma, G7 ülkelerinde (Kanada, Fransa, Almanya, İtalya, Japonya, Birleşik Krallık ve Amerika Birleşik Devletleri) 1990-2021 döneminde yeşil finans (GF) ile çevresel sürdürülebilirlik (ES) arasındaki nedensel ilişkiyi incelemektedir. Sonuçlar, Almanya ve ABD’de GF ile ES arasında çift yönlü bir nedensellik olduğunu, yani yeşil finans ve çevresel sürdürülebilirliğin birbirini karşılıklı olarak güçlendirdiğini göstermektedir. Kanada ve Japonya için yapılan analiz, GF’den ES’ye tek yönlü bir nedensellik olduğunu, yani yeşil finansın çevresel sürdürülebilirliği iyileştirdiğini ortaya koymaktadır. Buna karşılık, Fransa, İtalya ve Birleşik Krallık için GF-ES bağlantısında herhangi bir nedensel ilişki gözlenmemiştir; bu da ülkeler arasında bu ilişki açısından heterojenlik olduğunu göstermektedir.

Anahtar Kelimeler

yeşil finans, çevresel sürdürülebilirlik, G7 ülkeleri, VAR modeli

Kaynakça

• Bakry, W., Mallik, G., Nghiem, X. H., Sinha, A., & Vo, X. V. (2023). Is green finance really “green”? Examining the long-run relationship between green finance, renewable energy and environmental performance in developing countries. Renewable Energy, 208, 341-355.
• Berrou, R., Dessertine, P., & Migliorelli, M. (2019). An overview of green finance. The rise of green finance in Europe: opportunities and challenges for issuers, investors and marketplaces, 3-29.
• European Commission. (2020). The EU taxonomy for sustainable activities. Official Publications of the European Union.
• Falcone, P. M. (2020). Environmental regulation and green investments: The role of green finance. International Journal of Green Economics, 14(2), 159-173.
• Fu, W., & Irfan, M. (2022). Does green financing develop a cleaner environment for environmental sustainability: Empirical insights from association of southeast Asian nations economies. Frontiers in Psychology, 13, 904768.
• Grunow, H. W., & Zender, C. (2020). Green Finance. Erfolgreiche Schritte zur grünen Unternehmensfinanzierung, Wiesbaden.
• Gökçe, A. (2002). İMKB'de fiyat-hacim ilişkisi: granger nedensellik testi. Gazi Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 4(3), 43-48.
• Han, J., Shah, N., & Baloch, M. A. (2024). Modelling the effects of green finance and renewable energy on environmental sustainability: Fresh insights for BICST economies. Geological Journal, 59(10), 2847-2859.
• Khan, H. H. A., Ahmad, N., Yusof, N. M., & Chowdhury, M. A. M. (2024). Green finance and environmental sustainability: a systematic review and future research avenues. Environmental Science and Pollution Research, 31(6), 9784-9794.
• Lee, J. W. (2020). Green finance and sustainable development goals: The case of China. Lee, Jung Wan (2020). Green Finance and Sustainable Development Goals: The Case of China. Journal of Asian Finance Economics and Business, 7(7), 577-586.
• Lv, Y. (2023). Transitioning to sustainable energy: opportunities, challenges, and the potential of blockchain technology. Frontiers in Energy Research, 11, 1258044.
• Ma, M., Zhu, X., Liu, M., & Huang, X. (2023). Combining the role of green finance and environmental sustainability on green economic growth: Evidence from G-20 economies. Renewable Energy, 207, 128-136.
• Rahman, M. H., Rahman, J., Tanchangya, T., & Esquivias, M. A. (2023). Green banking initiatives and sustainability: A comparative analysis between Bangladesh and India. Research in Globalization, 100184.
• Ozili, P. K. (2022). Green finance research around the world: a review of literature. International Journal of Green Economics, 16(1), 56-75.
• Sadiq, M., Chau, K. Y., Ha, N. T. T., Phan, T. T. H., Ngo, T. Q., & Huy, P. Q. (2024). The impact of green finance, eco-innovation, renewable energy and carbon taxes on CO2 emissions in BRICS countries: Evidence from CS ARDL estimation. Geoscience Frontiers, 15(4), 101689.
• Shahzad, M. A., & Riaz, M. (2022). Assessing the impact of green finance on environmental sustainability. Journal of Policy Research (JPR), 8(3), 196-220.
• Shi, Y., Zhu, Q., & Khan, M. A. (2024). The efficacy of green finance for environmental sustainability: Does control of corruption makes a difference? Borsa Istanbul Review, 24(6), 1179-1189.
• Udeagha, M. C., & Muchapondwa, E. (2023). Green finance, fintech, and environmental sustainability: fresh policy insights from the BRICS nations. International Journal of Sustainable Development & World Ecology, 30(6), 633-649.
• Wang, Y., Zhao, N., Lei, X., & Long, R. (2021). Green finance innovation and regional green development. Sustainability, 13(15), 8230.
• Wang, J., Tian, J., Kang, Y., & Guo, K. (2023). Can green finance development abate carbon emissions: Evidence from China. International Review of Economics & Finance, 88, 73-91.
• Wang, X., Zhao, H., & Bi, K. (2021). The measurement of green finance index and the development forecast of green finance in China. Environmental and Ecological Statistics, 28, 263-285.
• Wu, G., Liu, X., & Cai, Y. (2024). The impact of green finance on carbon emission efficiency. Heliyon, 10(1).
• Xing, L., Chang, B. H., & Aldawsari, S. H. (2024). Green Finance Mechanisms for Sustainable Development: Evidence from Panel Data. Sustainability, 16(22), 9762.
• Zakari, A. (2022). The role of green finance in promoting sustainable economic and environmental development. Studies of Applied Economics, 40(3).