Green finance and green growth nexus: evaluating the role of globalization and human capital

ABSTRACT

Green finance is one of the emerging research areas, particularly in academia and industries. However, its contribution to green growth remains relatively unexplored. Unlike previous studies, the current research contributes to the existing literature by using green finance as a policy tool for achieving green growth. The method of moment quantile regression is used to investigate the link between green finance and other control variables on green growth in the 19 selected OECD economies from 1990 and 2021. The main findings of the study support the idea that green finance accelerates green growth in the selected countries. Similarly, the results for human capital show a significantly positive relationship with green growth. Additionally, increase in globalization and GDP decrease green growth. To promote green growth and achieve the sustainable environmental goals set by OECD economies, policymakers and regulators must prioritize green finance.

KEYWORDS:

• Green finance
• green growth
• OECD economies
• MMQR approach

Acknowledgments

We are grateful for the helpful comments and suggestions provided to us by Thomas Ziesemer (Associate editor) and the two anonymous referees.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Muhammad Tufail

Muhammad Tufail is a Ph.D. candidate in the School of Economics and Finance, at Xi’an Jiaotong University China. His research interests focus on Environmental Economics, Energy Economics, and Economics of Crime. His research work has been published in journals like Energy Policy, Sustainable Development, Journal of Cleaner Production, Economic Research-Ekonomska Istraživanja and Journal of the Knowledge Economy, etc.

Lin Song

Professor Lin Song is a supervisor of Ph.D. candidates at the School of Economics and Finance, Xi’an Jiaotong University China. He has a vast teaching experience in different institutions. From 1993 to 2000 he was a counselor and teaching assistant at the Industrial Economics Department at the former Shaanxi Institute of Finance and Economics. From 2000 to 2007 he performed a lecturer post at the School of Economics and Finance at Xian Jiaotong University. From 2010 to 2011 he was a visiting scholar of the China Scholarship Council at the University of Nottingham UK. From 2011 he worked as a Doctoral Supervisor and got a Professorship in 2012. His research field is Labor Market, Industrial Organization, and Corporate Governance. Professor Song has won several prestigious awards related to his research work from GOC. Moreover, his research work has been published in journals such as Resources Policy, Asian- Pacific Economic Literature, Economic Research-Ekonomska Istraživanja and Journal of the Knowledge Economy, etc.

Zeeshan Khan

Dr Zeeshan Khan has completed his Ph.D. degree from Curtin University Malaysia. Before this, he served as a Research Assistant at Tsinghua University China from 2017 to 2021. His research focuses on Environmental Economics, Energy Economics, International Trade, and Macroeconomics. His scholarly contributions have been featured in renowned international journals, including Energy Economics, Energy Policy, Technological Forecasting and Social Change, Technology and Society, and Resources Policy, etc. In recognition of his research excellence, Dr Zeeshan Khan ranked among the top 2% and 1% of highly cited researchers in 2022 and 2023 as well. Additionally, he has taken on the role of a Guest Editor for Frontiers in Environmental Sciences and the Politicka Ekonomie Journal.