Green finance and environmental sustainability: evaluating the role of urbanization, energy, and institutional quality in Asia’s low-carbon transition

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides empirical evidence using panel data on the link between green finance and CO2 emissions in Asia.

🏛政策担当者:Suggests that green finance initiatives can effectively reduce CO2 emissions, supporting low-carbon transition policies.

Asia is a fast-growing emerging market with investment potential, making it essential to investigate the mechanisms by which green finance influences environmental sustainability. For the empirical analysis using data from 2000 to 2022 on twenty-two Asian economies, we applied the fixed- and random-effects model. First, we have verified the model’s feasibility and employed diagnostic tests and robustness, which show that the model is appropriate. The key findings of the fixed effect model, suggested by the Hausman test, indicate that there is a negative association between Green Finance and CO2 emissions. The green finance coefficient is − 0.0107, which implies that a 1% increase in green finance leads to a reduction in carbon emissions by 0.0107%. Likewise, population density exhibits a negative relationship with CO2 emissions. The coefficient of population density is − 0.5373, implying that a 1% increase in population density diminishes carbon emissions by 0.5373%, which supports the ecological efficiency theory. The Causality test shows unidirectional causality among the variables. Based on evidence, this study suggests that policymakers of the Asian economies should focus on green finance initiatives to support environmentally sustainable investments, which leads to a decline in CO₂ emissions.

• semanticscholar https://doi.org/10.1038/s41598-026-46502-0first seen 2026-06-05 05:36:21