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Can sustainable financing facilitate the energy justice transformation? Evidence from developing countries in Asia

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  • Liu, Yang
  • Dong, Kangyin
  • Nepal, Rabindra

Abstract

The transformation of energy systems towards justice in developing countries has attracted widespread attention. However, empirical evidence on whether sustainable financing drives this transformation remains limited. This study innovatively explores the impact of sustainable financing on promoting just energy transitions, focusing on developing countries in Asia where sustainable financing is thriving and energy transition is advancing rapidly. Our research indicates that sustainable financing promotes energy justice transitions, particularly in regions with more advanced transitions and robust financial systems. We also find that improving governance quality and human capital enhances the positive impact of sustainable financing. Additionally, sustainable financing indirectly promotes energy justice transitions by fostering green innovations. These findings provide empirical evidence and practical implications for policymakers to promote just energy transitions in developing Asian countries.

Suggested Citation

  • Liu, Yang & Dong, Kangyin & Nepal, Rabindra, 2025. "Can sustainable financing facilitate the energy justice transformation? Evidence from developing countries in Asia," Global Finance Journal, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:glofin:v:64:y:2025:i:c:s1044028325000080
    DOI: 10.1016/j.gfj.2025.101081
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    More about this item

    Keywords

    Energy justice; Sustainable financing; Government quality; Human capital; Green innovation; Asia;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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