Green Finance and Renewable Energy Use; Could Effective Mechanism Neutralize the Environmental Pollution and Enhanced the Energy Efficien

Abstract

The pursuance of green growth has become a global priority as societies recognize the need to strike a balance between economic development, environmental preservation, along with energy efficiency. Green finance has emerged as a crucial mechanism for promoting sustainable practices and mitigating the negative effects of economic activities in this context. The purpose of this study is to examine the intricate connections among green finance, economic factors, energy efficiency, along with environmental pollution in order to identify the path to sustainable development. In order to accomplish our goals, Researcher analyze a vast data set containing 79 countries from 1999 to 2019. The study employ advanced econometric techniques, such as FMOLS, Granger causality tests, and cointegration analysis, to evaluate the relationships between the variables. In addition, the study identifies mediation along with moderation effects, thereby revealing the indirect as well as interactive influences of particular variables on dependent variables. Green finance plays a crucial role in promoting long-term economic development, fostering improved energy efficiency, and contributing to environmental preservation, according to our findings. The study illustrates how green finance can function as a catalyst for sustainable development, not only benefiting the environment but also driving economic growth. This study's findings have substantial implications for policymakers, enterprises, and other stakeholders. The incorporation of green finance into policy frameworks can result in a more resilient, environmentally conscious, and energy-efficient global economy. By recognizing the mediating and moderating effects of particular variables, decision-makers can develop targeted strategies to address environmental challenges and promote economic growth. While this research provides valuable insights, Researcher recognize its limitations, xviii especially in terms of the availability of data and its scope. Green finance, economic factors, energy efficiency, along with environmental preservation have complex interrelationships that require additional research to investigate additional dimensions and refine understanding. Keywords: Green Finance, Energy Efficiency, Environmental Pollution, Financial Development, Foreign Direct Investment, Renewable Energy