Unveiling the synergy: Green finance, technological innovation, green energy, and carbon neutrality

Abstract

This study investigates the pivotal role of green strategies in achieving carbon neutrality by exploring the synergistic contributions of green finance, green technological innovation, and green energy adoption. The study has implemented several panel data estimation techniques including second generation panel unit root test commonly known as CADF and CIPS, an error correction-based panel cointegration test, for documenting the elasticities of GF, GTI, and GE on carbon neutrality through Continuously-Update Fully Modified[CUP-FM], Continuously-Update Bias-Corrected [CUP-BC], and Dynamic Seemingly Unrelated Regression [DSUR]. The asymmetric coefficients have exploded with the implementation of a nonlinear framework, which is well known as NARDL. Our findings underscore the significance of green finance mechanisms in mobilizing resources for sustainable initiatives, including renewable energy projects and energy-efficient technologies. Study shed light on the catalytic impact of green Technological innovation in driving technological advancements, reducing emissions, and fostering economic growth. Furthermore, our study delves into the transformative potential of clean energy adoption, elucidating how it can substantially reduce carbon footprints and bolster the transition to a low-carbon economy. This study contributes to the growing body of knowledge on the critical nexus of green strategies and carbon neutrality, offering a roadmap for a more sustainable and environmentally responsible future. In a world grappling with the pressing challenges of climate change, our research offers valuable insights into the strategies that institutions, policymakers, and businesses can employ to facilitate the transition toward carbon neutrality.