Do Green Investments, Bank Loans, Savings and Capital Formation Support Sustainable Development in the United States?
Do Green Investments, Bank Loans, Savings and Capital Formation Support Sustainable Development in the United States?

Summary/Abstract: The United States is one of the countries where the banking sector is well-developed, savings are high, and significant budgets are allocated to energy technologies; these factors could affect the sustainable development and environment. To this end, this paper aims to investigate whether green investments, banking sector development, capital formation and savings have an impact on sustainable development in the United States. This research employs cointegration and symmetric/asymmetric causality tests to analyse annual data from 1974 to 2023. The Hatemi-J (2008) cointegration test showed that there is no long-run relationship between load capacity factor and selected variables. Hatemi-J (2014) asymmetric causality test revealed that green investments and banking sector development have a positive impact on load capacity factor. Accordingly, it can be said that green investments and banking sector development are important factors in achieving sustainable development. The obtained results are expected to provide significant insights for policymakers.

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