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Green finance, renewable energy and carbon neutrality in OECD countries

Author

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  • Jin, Cheng
  • Lv, Zhiwei
  • Li, Zengrong
  • Sun, Kehan

Abstract

Many countries have committed to reducing carbon emissions based on an international roadmap entitled “carbon neutrality.” This study empirically investigates the effects of green finance and renewable energy sources on 38 OECD member states’ carbon neutrality target covering period from 2013 to 2021. According to the estimated findings, increasing the issued green bonds in OECD would bring about more achievements in the carbon neutrality target. In particular, A rise in green energy consumption of 1% is expected to result in an improvement of nearly 0.048% towards the carbon neutrality goal. Moreover, uncertainty has a negative impacts on the carbon neutrality of OECD with the most significant magnitude of coefficient among other explanatory variables. The primary policy implications are developing the green financial market, digital green financing tools, and sustainable power generation through three phases of locating, investing, and utilizing carbon market policy.

Suggested Citation

  • Jin, Cheng & Lv, Zhiwei & Li, Zengrong & Sun, Kehan, 2023. "Green finance, renewable energy and carbon neutrality in OECD countries," Renewable Energy, Elsevier, vol. 211(C), pages 279-284.
    • Handle: RePEc:eee:renene:v:211:y:2023:i:c:p:279-284
    DOI: 10.1016/j.renene.2023.04.105
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    More about this item

    Keywords

    Green finance; Renewable energy deployment; Carbon neutrality; Green innovation;
    All these keywords.

    JEL classification:

    • 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
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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