Green finance, technological innovation, renewable energy consumption and sustainable agriculture in Asia

Abstract

This study highlights the nexus among green finance (GF), technological innovation (TI), renewable energy consumption (REC), and sustainable agriculture (AGR) in Asia over the period 2000–2022. The analysis applies dynamic ordinary least squares (DOLS) for empirical estimation and employs generalized method of moments (GMM) models to verify robustness. We find that GF, TI, REC, and foreign direct investment (FDI) positively affect AGR, whereas institutional quality (IQ) negatively affects AGR. Moreover, we find that IQ interacts positively with GF and FDI, whilst negatively with TI, in explaining AGR. Based on our results, we propose several policy recommendations to promote sustainable agricultural growth. Governments should adopt policies that encourage green investment, specifically through tax reductions and preferential interest rates for high-tech farm projects, renewable energy initiatives, and organic production. Policies for developing green financial instruments, such as green bonds and green credit for farmers and agribusinesses, also need to be strengthened. Besides, governments should expand preferential financial support packages to incentivize farmers to invest in digital technologies and clean energy for agricultural production. Strengthening international cooperation to attract green infrastructure projects in agriculture should be prioritized to achieve sustainable agricultural development across the Asian region.