The nexus among green financial development and renewable energy: investment in the wake of the Covid-19 pandemic

Abstract

Environmental protection has become a significant issue around the globe. The extensive use of renewable energy and green finance is considered as the solution to this dramatic issue, especially in the Covid-19 lockdown. To answer this demand, the present study examines the impact of green financial development such as green credit, green investment, and green securities along with corporate social responsibility (CSR) in reporting renewable energy investment based on evidence from an emerging economy. Economic growth was used as the control variable of the study. The data was gathered from the central bank and World Development Indicators (WDI) from 1976 to 2020. The error correction model (ECM) was used to test the nexus among the variables. The findings revealed that green credit, green investment, and green securities along with CSR reporting and economic growth have a significant positive nexus with renewable energy investment in the selected emerging economy. These outcomes are helpful for new arrivals to investigate this area in the future along with regulators who want to formulate policies related to green finance and renewable energy usage and investment in the context of emerging and developing countries.