Abstract
The growth of green finance is a multifaceted system, including the interaction of three spheres: the economy, the environment, and the finance sector. Spending on education is a singular intellectual contribution to a society's attempts to achieve sustainability through the application of skills, the provision of consultancies, the delivery of training, and the dissemination of knowledge. University scientists sound the first warnings about environmental problems and help lead the charge toward transdisciplinary technological solutions. Researchers are compelled to look into the environmental crisis because it has become a worldwide concern that needs regular examination. In this research, we examine how the GDP per capita, green financing, health expenditure, educational expenditure, and technology in the G7 economies affect the growth of renewable energy (Canada, Japan, Germany, France, Italy, UK, and the USA). The research makes use of panel data from the year 2000 through the year 2020. Long-term correlations between the variables are estimated using the CC-EMG in this study. The study's trustworthy results were determined using a combination of AMG and MG regression calculations. The research shows that the growth of renewable energy is positively affected by green finance, educational spending, and technology but negatively affected by GDP per capita and health expenditure. The growth of renewable energy is also positively affected by the influence of the term “green financing” on such variables as GDP per capita, health expenditure, educational expenditure, and technological advancement. The estimated outcomes also provide significant policy implications for the chosen and other developing economies in scheming a suitable route to a sustainable environment.
Similar content being viewed by others
Data availability
The data can be available on request.
References
Abbasi KR, Hussain K, Haddad AM, Salman A, Ozturk I (2022) The role of financial development and technological innovation towards sustainable development in Pakistan: fresh insights from consumption and territory-based emissions. Technol Forecast Soc Change 176:121444. https://doi.org/10.1016/J.TECHFORE.2021.121444
Adekoya OB, Oliyide JA, Fasanya IO (2022) Renewable and non-renewable energy consumption – ecological footprint nexus in net-oil exporting and net-oil importing countries: Policy implications for a sustainable environment. Renew Energy 189:524–534. https://doi.org/10.1016/j.renene.2022.03.036
Agyekum, E.B., 2020. Energy poverty in energy rich Ghana: a SWOT analytical approach for the development of Ghana’s renewable energy. Sustain. Energy Technol. Assessments 40. https://doi.org/10.1016/j.seta.2020.100760
Ahmad M, Rehman A, Shah SAA, Solangi YA, Chandio AA, Jabeen G (2021) Stylized heterogeneous dynamic links among healthcare expenditures, land urbanization, and CO2 emissions across economic development levels. Sci Total Environ. 753:142228. https://doi.org/10.1016/j.scitotenv.2020.142228
Ainou FZ, Ali M, Sadiq M (2022) Green energy security assessment in Morocco: green finance as a step toward sustainable energy transition. Environ Sci Pollut Res. 1–19. https://doi.org/10.1007/s11356-022-19153-7
Akram R, Chen F, Khalid F, Huang G, Irfan M (2021) Heterogeneous effects of energy efficiency and renewable energy on economic growth of BRICS countries: a fixed effect panel quantile regression analysis. Energy 215:119019. https://doi.org/10.1016/j.energy.2020.119019
Apergis N, Polemis M, Soursou SE (2022) Energy poverty and education: fresh evidence from a panel of developing countries. Energy Econ. 106. https://doi.org/10.1016/j.eneco.2021.105430
Balcilar M, Ozdemir ZA, Tunçsiper B, Ozdemir H, Shahbaz M (2020) On the nexus among carbon dioxide emissions, energy consumption and economic growth in G-7 countries: new insights from the historical decomposition approach. Environ Dev Sustain 22:8097–8134. https://doi.org/10.1007/S10668-019-00563-6/TABLES/2
Baloch ZA, Tan Q, Iqbal N, Mohsin M, Abbas Q, Iqbal W, Chaudhry IS (2020) Trilemma assessment of energy intensity, efficiency, and environmental index: evidence from BRICS countries. Environ Sci Pollut Res 27:34337–34347. https://doi.org/10.1007/s11356-020-09578-3
Bekun FV (2022) Mitigating emissions in india: accounting for the role of real income, renewable energy consumption and investment in energy. Int J Energy Econ Policy 12, 188–192. https://doi.org/10.32479/ijeep.12652
Charfeddine L, Kahia M (2019) Impact of renewable energy consumption and financial development on CO2 emissions and economic growth in the MENA region: a panel vector autoregressive (PVAR) analysis. Renew Energy 139:198–213. https://doi.org/10.1016/j.renene.2019.01.010
Cheng C, Ren X, Wang Z, Yan C (2019) Heterogeneous impacts of renewable energy and environmental patents on CO 2 emission - evidence from the BRIICS. Sci Total Environ 668:1328–1338. https://doi.org/10.1016/j.scitotenv.2019.02.063
Chien F, Zhang Y, Sadiq M, Hsu C (2021a) Financing for energy efficiency solutions to mitigate opportunity cost of coal consumption : an empirical analysis of Chinese industries
Chien FS, Kamran HW, Albashar G, Iqbal W (2021b) Dynamic planning, conversion, and management strategy of different renewable energy sources: a sustainable solution for severe energy crises in emerging economies. Int J Hydrogen Energy 46:7745–7758. https://doi.org/10.1016/j.ijhydene.2020.12.004
Destek MA, Shahbaz M, Okumus I, Hammoudeh S, Sinha A (2020) The relationship between economic growth and carbon emissions in G-7 countries: evidence from time-varying parameters with a long history. Environ Sci Pollut Res 27:29100–29117. https://doi.org/10.1007/S11356-020-09189-Y/FIGURES/2
Dinda S, Coondoo D (2006) Income and emission: a panel data-based cointegration analysis. Ecol Econ 57:167–181. https://doi.org/10.1016/j.ecolecon.2005.03.028
Eberhardt M, Bond S (2009) Cross-section dependence in nonstationary panel models: a novel estimator [WWW Document]. Soc. Res. (New. York). URL http://mpra.ub.uni-muenchen.de/17870/2/2009-10-06_MC_simulations_paper_b.pdf (accessed 3.23.01).
Fu FY, Alharthi M, Bhatti Z, Sun L, Rasul F, Hanif I, Iqbal W (2021) The dynamic role of energy security, energy equity and environmental sustainability in the dilemma of emission reduction and economic growth. J Environ Manage. 280. https://doi.org/10.1016/j.jenvman.2020.111828
Guang-Wen Z, Siddik AB (2022) Do corporate social responsibility practices and green finance dimensions determine environmental performance? An empirical study on bangladeshi banking institutions. Front Environ Sci 10:858. https://doi.org/10.3389/fenvs.2022.890096
Hai Ming L, Gang L, Hua H, Waqas M (2022) Modeling the influencing factors of electronic word-of-mouth about CSR on social networking sites. Environ Sci Pollut Res. 1–18. https://doi.org/10.1007/s11356-022-20476-8
Han Y, Tan S, Zhu C, Liu Y (2022) Research on the emission reduction effects of carbon trading mechanism on power industry: plant-level evidence from China. Int J Clim Chang Strateg Manag. ahead-of-print. https://doi.org/10.1108/IJCCSM-06-2022-0074/FULL/PDF
He L, Liu R, Zhong Z, Wang D, Xia Y (2019) Can green financial development promote renewable energy investment efficiency? A consideration of bank credit. Renew Energy 143:974–984. https://doi.org/10.1016/j.renene.2019.05.059
Hou Y, Iqbal W, Shaikh GM, Iqbal N, Solangi YA, Fatima A (2019) Measuring energy efficiency and environmental performance: a case of South Asia. Processes 7:325. https://doi.org/10.3390/pr7060325
Im KS, Pesaran MH, Shin Y (2003) Testing for unit roots in heterogeneous panels. J Econom 115:53–74. https://doi.org/10.1016/S0304-4076(03)00092-7
Iqbal A, Tang X, Rasool SF (2022) Investigating the nexus between CO2 emissions, renewable energy consumption, FDI, exports and economic growth: evidence from BRICS countries. Environ Dev Sustain. 1–30. https://doi.org/10.1007/S10668-022-02128-6/TABLES/7
Keleş S, Bilgen S (2012) Renewable energy sources in Turkey for climate change mitigation and energy sustainability. Renew Sustain Energy Rev. https://doi.org/10.1016/j.rser.2012.05.026
Khan H, Weili L, Khan I, thi Kim Oanh, L., (2021) Recent advances in energy usage and environmental degradation: does quality institutions matter? A worldwide evidence. Energy Rep 7:1091–1103. https://doi.org/10.1016/j.egyr.2021.01.085
Khan MTI, Yaseen MR, Ali Q (2019) Nexus between financial development, tourism, renewable energy, and greenhouse gas emission in high-income countries: a continent-wise analysis. Energy Econ 83:293–310. https://doi.org/10.1016/j.eneco.2019.07.018
Levenda AM, Behrsin I, Disano F (2021) Renewable energy for whom? A global systematic review of the environmental justice implications of renewable energy technologies. Energy Res Soc Sci. 71:101837. https://doi.org/10.1016/j.erss.2020.101837
Levin A, Lin CF, Chu CSJ (2002) Unit root tests in panel data: asymptotic and finite-sample properties. J Econom 108:1–24. https://doi.org/10.1016/S0304-4076(01)00098-7
Li G, Wu H, Sethi SP, Zhang X (2021) Contracting green product supply chains considering marketing efforts in the circular economy era. Int J Prod Econ 234:108041. https://doi.org/10.1016/J.IJPE.2021.108041
Li X, Wang H, Yang C (2023) Driving mechanism of digital economy based on regulation algorithm for development of low-carbon industries. Sustain Energy Technol Assess 55:102909. https://doi.org/10.1016/J.SETA.2022.102909
Li Z, Kuo TH, Siao-Yun W, The Vinh L (2022) Role of green finance, volatility and risk in promoting the investments in Renewable Energy Resources in the post-covid-19. Resour Policy 76, 102563. https://doi.org/10.1016/J.RESOURPOL.2022.102563
Li Z, Zhou X, Huang S (2021) Managing skill certification in online outsourcing platforms: a perspective of buyer-determined reverse auctions. Int J Prod Econ 238:108166. https://doi.org/10.1016/J.IJPE.2021.108166
Liu H, Yao P, Latif S, Aslam S, Iqbal N (2022a) Impact of Green financing, FinTech, and financial inclusion on energy efficiency. Environ Sci Pollut Res 29:18955–18966. https://doi.org/10.1007/s11356-021-16949-x
Liu L, Li Z, Fu X, Liu X, Li Zehao, Zheng W, (2022b) Impact of power on uneven development: evaluating built-up area changes in Chengdu based on NPP-VIIRS images (2015–2019). L. 2022b, Vol. 11, Page 489 11, 489. https://doi.org/10.3390/LAND11040489
Liu X, Tong D, Huang J, Zheng W, Kong M, Zhou G, 2022c. What matters in the e-commerce era? Modelling and mapping shop rents in Guangzhou, China. Land use policy 123, 106430. https://doi.org/10.1016/J.LANDUSEPOL.2022.106430
Liu Z, Vu TL, Phan TTH, Ngo TQ, Anh NHV, Putra ARS (2022d). Financial inclusion and green economic performance for energy efficiency finance. Econ Chang Restruct. 1–31. https://doi.org/10.1007/s10644-022-09393-5
Ma Y, Zhang TT, Qian W, Wei D (2021) Financial development, demographic changes, and the growth of the non-hydro renewable energy industry—an empirical test based on R&D and financing costs. Renew. Energy
Mehmood U (2021) Examining the role of financial inclusion towards CO2 emissions: presenting the role of renewable energy and globalization in the context of EKC. Environ Sci Pollut Reshttps://doi.org/10.1007/s11356-021-16898-5
Mohsin M, Taghizadeh-Hesary F, Iqbal N, Saydaliev HB (2022) The role of technological progress and renewable energy deployment in green economic growth. Renew Energy 190:777–787. https://doi.org/10.1016/j.renene.2022.03.076
Ning Y, Cherian J, Sial MS, Álvarez-Otero S, Comite U, Zia-Ud-Din M (2022) Green bond as a new determinant of sustainable green financing, energy efficiency investment, and economic growth: a global perspective. Environ Sci Pollut Res 1:1–16. https://doi.org/10.1007/S11356-021-18454-7/TABLES/10
Omar MA, Hasanujzaman M (2021) Multidimensional energy poverty in Bangladesh and its effect on health and education: a multilevel analysis based on household survey data. Energy Policy 158:112579. https://doi.org/10.1016/j.enpol.2021.112579
Ortego Sampedro E, Dazin A, Colas F, Roussette O, Coutier-Delgosha O, Caignaert G (2021) Multistage radial flow pump - turbine for compressed air energy storage: experimental analysis and modeling. Appl Energy 289. https://doi.org/10.1016/j.apenergy.2021.116705
Pesaran MH (2006) Estimation and inference in large heterogeneous panels with a multifactor error structure. Econometrica 74(4):967–1012
Pesaran MH (2007) A simple panel unit root test in the presence of cross-section dependence. J Appl Econom 22:265–312. https://doi.org/10.1002/jae.951
Pesaran MH, Schuermann T, Weiner SM (2004) Modeling regional interdependencies using a global error-correcting macroeconometric model. J Bus Econ Stat 22(2):129–162
Pesaran MH, Ullah A, Yamagata T (2008) A bias-adjusted LM test of error cross-section independence. Econom J 11:105–127. https://doi.org/10.1111/j.1368-423X.2007.00227.x
Phillips PCB, Sul D (2003) Dynamic panel estimation and homogeneity testing under cross section dependence. Econom J 6:217–259. https://doi.org/10.1111/1368-423X.00108
Zaman Q. uz, Wang Z, Zaman S, Rasool SF (2021) Investigating the nexus between education expenditure, female employers, renewable energy consumption and CO2 emission: evidence from China. J Clean Prod. 312, 127824. https://doi.org/10.1016/j.jclepro.2021.127824
Rafique MZ, Doğan B, Husain S, Huang S, Shahzad U (2021) Role of economic complexity to induce renewable energy: contextual evidence from G7 and E7 countries. Int J Green Energy 18:745–754. https://doi.org/10.1080/15435075.2021.1880912
Raghutla C, Shahbaz M, Chittedi KR, Jiao Z (2021) Financing clean energy projects: new empirical evidence from major investment countries. Renew Energy 169:231–241. https://doi.org/10.1016/j.renene.2021.01.019
Ramzan M, Raza SA, Usman M, Sharma GD, Iqbal HA (2022) Environmental cost of non-renewable energy and economic progress: do ICT and financial development mitigate some burden? J Clean Prod. 333:130066. https://doi.org/10.1016/j.jclepro.2021.130066
Rauf A, Ozturk I, Ahmad F, Shehzad K, Chandiao AA, Irfan M, Abid S, Jinkai L (2021) Do tourism development, energy consumption and transportation demolish sustainable environments? Evidence from Chinese provinces. Sustain 13:12361. https://doi.org/10.3390/su132212361
Sadorsky P (2014) The effect of urbanization on CO2 emissions in emerging economies. Energy Econ 41:147–153. https://doi.org/10.1016/j.eneco.2013.11.007
Sarkodie SA, Strezov V (2019) Effect of foreign direct investments, economic development and energy consumption on greenhouse gas emissions in developing countries. Sci Total Environ 646:862–871. https://doi.org/10.1016/j.scitotenv.2018.07.365
Shahbaz M, Abbas Rizvi SK, Dong K, Vo XV (2022) Fiscal decentralization as new determinant of renewable energy demand in China: the role of income inequality and urbanization. Renew Energy 187:68–80. https://doi.org/10.1016/J.RENENE.2022.01.064
Shahbaz M, Topcu BA, Sarıgül SS, Vo XV (2021) The effect of financial development on renewable energy demand: the case of developing countries. Renew Energy 178:1370–1380. https://doi.org/10.1016/J.RENENE.2021.06.121
Sharma M, Choubey A (2022) Green banking initiatives: a qualitative study on Indian banking sector. Environ Dev Sustain 24:293–319. https://doi.org/10.1007/s10668-021-01426-9
Sheraz M, Deyi X, Mumtaz MZ, Ullah A (2022) Exploring the dynamic relationship between financial development, renewable energy, and carbon emissions: a new evidence from belt and road countries. Environ Sci Pollut Res 29:14930–14947. https://doi.org/10.1007/s11356-021-16641-0
Tang YM, Chau KY, Fatima A, Waqas M (2022) Industry 4.0 technology and circular economy practices: business management strategies for environmental sustainability. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-022-19081-6
Urbain J-P, Westerlund J (2006) Spurious Regression in Nonstationary Panels with METEOR, Maastricht research school of Economics of TEchnology and ORganizations
Vujanović M, Wang Q, Mohsen M, Duić N, Yan J (2021) Recent progress in sustainable energy-efficient technologies and environmental impacts on energy systems. Appl. Energy 283, 116280. https://doi.org/10.1016/j.apenergy.2020.116280
Wang Z, Ben Jebli M, Madaleno M, Doğan B, Shahzad U (2021) Does export product quality and renewable energy induce carbon dioxide emissions: evidence from leading complex and renewable energy economies. Renew Energy 171:360–370. https://doi.org/10.1016/j.renene.2021.02.066
Wei R, Ayub B, Dagar V (2022) Environmental benefits from carbon tax in the Chinese carbon market: a roadmap to energy efficiency in the post-COVID-19 era. Front Energy Res 10:1–11. https://doi.org/10.3389/fenrg.2022.832578
Westerlund J, Edgerton DL (2007) A panel bootstrap cointegration test. Econ Lett 97:185–190. https://doi.org/10.1016/j.econlet.2007.03.003
Xia W, Apergis N, Bashir MF, Ghosh S, Doğan B, Shahzad U (2022) Investigating the role of globalization, and energy consumption for environmental externalities: Empirical evidence from developed and developing economies. Renew Energy 183:219–228. https://doi.org/10.1016/J.RENENE.2021.10.084
Xiong Z, Liu Q, Huang X (2022) The influence of digital educational games on preschool Children’s creative thinking. Comput Educ 189:104578. https://doi.org/10.1016/J.COMPEDU.2022.104578
You C, Khattak SI, Ahmad M (2022) Impact of innovation in renewable energy generation, transmission, or distribution-related technologies on carbon dioxide emission in the USA. Environ Sci Pollut Res. 1–22. https://doi.org/10.1007/s11356-021-17938-w
Yumei H, Iqbal W, Irfan M, Fatima A (2021) The dynamics of public spending on sustainable green economy: role of technological innovation and industrial structure effects. Environ Sci Pollut Res 1:1–19. https://doi.org/10.1007/s11356-021-17407-4
Zhang D, Awawdeh AE, Hussain MS, Ngo QT, Hieu VM (2021) Assessing the nexus mechanism between energy efficiency and green finance. Energy Effic 14:1–18. https://doi.org/10.1007/s12053-021-09987-4
Zhang H, Geng C, Wei J (2022) Coordinated development between green finance and environmental performance in China: the spatial-temporal difference and driving factors. J Clean Prod. 131150. https://doi.org/10.1016/J.JCLEPRO.2022.131150
Acknowledgements
Risks of Excessive Debt Financing, Financing Constraints and Stock Price Collapse: Based on the Data of A-share Listed Companies in Guangdong Province (2018WQNCX312); Key Discipline Construction of Guangzhou Huashang College in 2021-Financial Management (NO.2021HSXK07).
Author information
Authors and Affiliations
Contributions
Shuyang Chen: conceptualization, data curation, methodology, writing—original draft, data curation; Gang Xie: visualization, supervision, editing, writing—review and editing, and software.
Corresponding author
Ethics declarations
Ethical approval and consent to participate.
The authors declare that they have no known competing financial interests or personal relationships that seem to affect the work reported in this article. We declare that we have no human participants, human data or human tissues.
Consent for publication.
N/A
Competing interests
The authors declare no competing interests.
Additional information
Responsible Editor: Nicholas Apergis
Publisher's note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Chen, S., Xie, G. Assessing the linkage among green finance, technology, and education expenditure: evidence from G7 economies. Environ Sci Pollut Res 30, 50332–50345 (2023). https://doi.org/10.1007/s11356-023-25625-1
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11356-023-25625-1