Moving Towards Energy Transition: What Role Do Green Financing, Green Technology and Environmental Sustainability Play?
Moving Towards Energy Transition: What Role Do Green Financing, Green Technology and Environmental Sustainability Play?

Summary/Abstract: Green finance strategies have been established to direct funding towards green energy initiatives and promote the advancement of green technology for ecological sustainability. Moreover, the progress in green technology has played a significant role in the growth of green energy infrastructure in China. Nevertheless, there have been no prior investigations undertaken in China that specifically examine the impact of green financing and green technology on green energy within an asymmetric quantile framework. Thus, in the current study, a multivariate quantile-on-quantile regression (m-QQR) methodology is used to experimentally examine the link between green energy usage and green financing in China controlling the environmental sustainability index, green technology and economic progress utilizing data from 2000 to 2022. Results of this study confirm that China benefits in terms of rising green energy consumption only at the mid-levels of green investment projects, if more high-cost projects are added beyond this mid-level, the potential of the active projects diminishes and consumption of green energy declines. This study confirms the conservation hypothesis. A reverse relationship emerges between the consumption of green energy and environmental sustainability. Finally, green technology innovation is coupled with green financing for green energy transition. This study posits that the Chinese economy has the potential to experience significant benefits from the adoption of green energy, mostly driven by breakthroughs and the integration of green technology.

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