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1.

Green finance and its impact on achieving sustainable development Pages 1525-1536 Right click to download the paper Download PDF

Authors: Mohammad Abdel Mohsen Al Afeef, Baliira Kalyebara, Nawaf Abuoliem, Amer N. Bani Yousef, Mahmoud Abdel Muhsen Irsheid Alafeef

DOI: 10.5267/j.uscm.2024.3.026

Keywords: ARDL Approach, Green Finance, Jordan, Sustainable Development

Abstract:
This study aims to investigate the impact of green finance initiatives on achieving sustainable development goals in Jordan, with a specific focus on evaluating the effectiveness of green finance strategies in promoting environmental sustainability. The research applies the Autoregressive Distributed Lag (ARDL) method and assesses the connection of green finance, taken as the number of banks who increase the loan activity on ecology projects, and sustainable growth, given by the records of carbon releases. Relevant control variables involved in this consideration include income level, population, trade openness, and urbanization in addition to other factors that could otherwise cause a deviation which would generate biased results. The statistical tests show that green finance positively contributes to sustainable development in Jordan, and in the short- and long-term perspectives. Green finance and sustainable development have been a tightly connected two-way causality between them according to Dik and Panchenko's test, which implies that a virtuous cycle exists here. The results give extra weight and brilliant examples of the crucial role that green finance plays in the implementation of the sustainable development goals. It is this role that mainly enables reduction of carbon emissions in the world and mitigation of the negative consequences of climate change. They touch on the main issue of shaping the suitable conditions for green investment options and to create the interest for investing in sustainable development projects. This has become part and parcel of the green finance and sustainable development literature through the manifold of envisaged adjustments to our research design, a wide array of relevant control variables considered, and fully developed elaborated econometrics. It offers a direct response to the research gap by unfolding how becoming green finances takes place. This empowers the sustainable development outcomes in Jordan.
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Journal: USCM | Year: 2024 | Volume: 12 | Issue: 3 | Views: 928 | Reviews: 0

 

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