A STUDY ON SUSTAINABLE DEVELOPMENT, RENEWABLE ENERGY CONSUMPTION AND GREEN FINANCIAL INDICATORS HAVING MEDIATING EFFECT OF TECHNOLOGICAL INNOVATION AND NATURAL RESOURCES

Abstract

In the past three decades, the issue of sustainability has become the focal point of all international forums, assuming a position of utmost importance. Designing a generic societal and economic paradigm that can articulate economic viability, social inclusion, and environmental sustainability is one of the greatest challenges of the twenty-first century. The most efficient method for addressing the environmental challenges faced by countries is to place an emphasis on sustainable development. To address the substantial problems that have arisen as a consequence of environmental deterioration and global warming caused by human activity, it is necessary to adopt financial processes that are socially and ecologically responsible. One such process is green finance. Green finance projects measures can help to promote sustainable economic growth, climate change, and sustainable development. Green financing is essential because it guarantees the initiatives that seek the necessary financing to reduce the world's reliance on fossil fuels. Green financial indicators can be simultaneously made possible by specialized technological innovation and natural resource rent, thereby encouraging the adoption of sustainable energy. In this Study, we examine whether and how green financial indicators influence long-term sustainable development. In this Study, we investigate the mediating mechanisms underlying the relationship among green financial indicators sustainable development and renewable energy consumption and we contribute to the ongoing discussion surrounding this relationship. Our observational analysis is derived from data collected for 66 countries between 2004 and 2019. Initially various data diagnostic techniques were applied on the data. Fully Modified Ordinary Least Square Method and Dynamic Ordinary Least Square Method was used to investigate the long-term association xxi among the green financial indicators, renewable energy consumption and sustainable development. According to the study, green financial indicators are essential for supporting sustainable development and reducing the output of damaging carbon emissions. Through technical innovation, the effectiveness of natural resources is used can be improved, and the detrimental impacts of economic action on the environment can be decreased. In the meantime, natural resources can help sustainable development projects. Furthermore, the study found that green funding initiatives have accelerated the adoption of renewable energy sources by encouraging increases in the proportion of renewable energy in the fuel supply. Multiple analyses of reliability corroborate the existence of this link. Green funding has been shown to have an encouraging effect on the transition to renewable energy, and our findings indicate that technological advancement and natural resource leasing serve to mitigate this effect. One key recommendation is to prioritize the implementation of green financing mechanisms in these countries. By promoting and facilitating investments in renewable energy and environmentally sustainable projects, governments can drive economic growth while simultaneously addressing environmental concerns. This includes developing policies that encourage financial institutions to support and fund green initiatives, as well as providing incentives and subsidies to attract private investments in RNE. By implementing these policies effectively, these countries can make significant strides towards sustainable development, mitigating environmental degradation, and securing a more resilient future for their citizens. Keywords: Green finance, Sustainable Development, Climate Change, Environmental Degradation, Renewable Energy, Technological Innovation