Environmental Sustainability in Emerging Countries: The Role of Green Energy, Green Finance and Digitalization

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

🔬研究者:Provides robust panel evidence on the interplay of green energy, finance, and digitalization in emerging economies, useful for comparative studies.

🏢実務担当者:Highlights the importance of integrating green finance and digital tools in corporate sustainability strategies for emerging market operations.

🏛政策担当者:Offers empirical support for holistic policies combining renewable energy, green finance, and digital innovation to achieve emissions targets in developing countries.

This study examines the interplay between green energy, green finance, and digitalization in fostering environmental sustainability across a panel of emerging economies from 2000 to 2024. Utilizing advanced panel econometric techniques, including Cross-Sectional Augmented IPS (CIPS) and CADF unit root tests, Pedroni and Westerlund cointegration methods, and a CS-ARDL model, the analysis reveals that renewable energy adoption, green financial mechanisms, and digital transformation significantly mitigate CO₂ emissions in both the short and long term. Conversely, GDP per capita demonstrates a positive correlation with emissions, underscoring the ecological trade-offs of economic growth. Trade openness exhibits a modest negative link with CO₂ emissions, implying that its environmental effects may vary based on trade structure and policy frameworks. Robustness checks via FMOLS and DOLS estimators validate the reliability of these results, while the Dumitrescu–Hurlin Granger causality test confirms unidirectional causality from renewable energy, green finance, and digitalization to emissions reduction. The findings emphasize the critical need for holistic policy strategies that simultaneously scale up renewable energy infrastructure, strengthen green financing instruments, and promote digital innovation to drive sustainable decarbonization. Additionally, sector-specific regulations, public-private partnerships, and international cooperation are vital to maximizing synergies among these drivers. By offering empirical evidence across multiple emerging economies, this study enriches the discourse on low-carbon transitions and provides actionable insights for policymakers seeking to balance economic development with ecological preservation. The research also highlights the importance of technology transfer and capacity-building in ensuring equitable green growth, particularly for developing nations. Ultimately, this work contributes to a deeper understanding of the pathways toward achieving global climate targets while fostering inclusive and sustainable development. References Abbas, Q., HongXing, Y., Ramzan, M., & Fatima, S. (2024). Carbon reduction through renewable energy and digitalization in emerging economies: Moderating role of public debt. Environmental Science and Pollution Research, 31, 43096–43116. Abid, N., Aftab, J., & Javed, A. (2025). The impact of green technological innovation and environmental policy on ecological sustainability: evidence from leading economies. Letters in Spatial and Resource Sciences, 18(1), 14. Alola, A. A., Bekun, F. V., & Sarkodie, S. A. (2019). Dynamic impact of trade policy, economic growth, fertility rate, renewable and non-renewable energy consumption on ecological footprint in Europe. Science of the Total Environment, 685, 702-709. Asghar, M. M., Arshad, Z., Yousaf, S., e Ali, M. S., & Tariq, M. (2024). Environmental Degradation in BRI Countries: Navigating the Role of Natural Resources, Green Energy and Green Finance. Pakistan Journal of Humanities and Social Sciences, 12(3), 2705-2716. Bilgili, F., Koçak, E., & Bulut, Ü. (2016). The dynamic impact of renewable energy consumption on CO2 emissions: a revisited Environmental Kuznets Curve approach. Renewable and Sustainable Energy Reviews, 54, 838-845. Chin, M. Y., Ong, S. L., Ooi, D. B. Y., & Puah, C. H. (2022). The impact of green finance on environmental degradation in BRI region. Environment, Development and Sustainability, 1. Chu, C. C., Narayan, P. K., & Ji, Y. (2025). Technology innovation, digital finance and renewable energy consumption: Evidence from China. Energy Economics, 108762.Wang, H. (2025). Green finance and foreign investment: catalysts for sustainable prosperity in emerging economies. Frontiers in Environmental Science, 13, 1561838. Dong, K., Hochman, G., Zhang, Y., Sun, R., Li, H., & Liao, H. (2018). CO2 emissions, economic and population growth, and renewable energy: empirical evidence across regions. Energy Economics, 75, 180-192. Fan, H., Hossain, M. I., Islam, M. A., & Yahia, Y. E. (2019). The impact of trade, technology and growth on environmental deterioration of China and India. Asian Economic and Financial Review, 9(1), 1. Hou, H., Wang, Y., & Zhang, M. (2023). Green finance drives renewable energy development: empirical evidence from 53 countries worldwide. Environmental Science and Pollution Research, 30(33), 80573-80590. Iram, M., Zameer, S., & Asghar, M. M. (2024). Financial development, ICT use, renewable energy consumption and foreign direct investment impacts on environmental degradation in OIC countries. Pakistan Journal of Humanities and Social Sciences, 12(2), 1303-1315. Javed, A., & Rapposelli, A. (2024). Unleashing the asymmetric impact of ICT, technological innovation, and the renewable energy transition on environmental sustainability: evidence from Western and Eastern European nations. Environment, Development and Sustainability, 1-39. Javed, A., & Rapposelli, A. (2024). Unleashing the asymmetric impact of ICT, technological innovation, and the renewable energy transition on environmental sustainability: evidence from Western and Eastern European nations. Environment, Development and Sustainability, 1-39. Karlilar, S., Balcilar, M., & Emir, F. (2023). Environmental sustainability in the OECD: The power of digitalization, green innovation, renewable energy and financial development. Telecommunications Policy, 47(6), 102568. Nathaniel, S. P., & Iheonu, C. O. (2019). Carbon dioxide abatement in Africa: the role of renewable and non-renewable energy consumption. Science of the total environment, 679, 337-345. Nepal, R., Liu, Y., Dong, K., & Jamasb, T. (2024). Green financing, energy transformation, and the moderating effect of digital economy in developing countries. Environmental and Resource Economics, 87(12), 3357-3386. Qadri, S. U., Shi, X., Rahman, S. U., Anees, A., Ali, M. S. E., Brancu, L., & Nayel, A. N. (2023). Green finance and foreign direct investment–environmental sustainability nexuses in emerging countries: new insights from the environmental Kuznets curve. Frontiers in Environmental Science, 11, 1074713. Sibt-e-Ali, M., Weimin, Z., Javaid, M. Q., & Khan, M. K. (2023). How natural resources depletion, technological innovation, and globalization impact the environmental degradation in East and South Asian regions. Environmental Science and Pollution Research, 30(37), 87768-87782. Sibt-e-Ali, M., Xia, X., Yi, W., & Vasa, L. (2025). Quantifying the role of digitalization, financial technology, governance and SDG13 in achieving environment conservation in the perspective of emerging economies. Environment, Development and Sustainability, 1-23. Singh, A. K., Kumar, S., & Gupta, M. (2024). Relationship between digitalization and environmental sustainability in selected countries. In Green transition impacts on the economy, society, and environment (pp. 83-107). IGI Global. Sultana, A., Chowdhury, A. A. A., Rafi, A. H., & Noman, A. A. (2025). Role of AI Innovation, Clean Energy and Digital Economy towards Net Zero Emission in the United States: An ARDL Approach. arXiv preprint arXiv:2503.19933. Ullah, S., Bhutta, M. A., Asghar, M. M., & Nadeem, F. (2025). Macroeconomic Performance of Pakistan: The Role of Foreign Direct Investment and Institutional Quality. ACADEMIA International Journal for Social Sciences, 4(2), 1831-1847. Ximei, K., Javaid, M. Q., Shams, T., & Sibt‐e‐Ali, M. (2025). Information and communication technology, economic globalization, and environmental sustainability in APEC nations: Insights from LCC and EKC hypotheses testing. Sustainable Development, 33(1), 878-903. Yuerong, H., Javaid, M. Q., Ali, M. S. E., & Zada, M. (2024). Revisiting the nexus between digital trade, green technological innovation, and environmental sustainability in BRICS economies. Environmental Science and Pollution Research, 31(6), 8585-8607. Zaid, M. A. K., Khan, M. F., Al-Mekhlafi, A. W. A. G. S., Al Koliby, I. S., Saoula, O., Saeed, H. A. E. M., & Mohammad, R. A. (2025). The future of green finance: How digital transformation and FinTech drive sustainability. Discover Sustainability, 6(1), 480.

• openaire https://doi.org/10.63544/ijss.v4i3.159first seen 2026-05-05 19:07:25