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Green financial instruments: Economic, technological, and legal cycles in the development of the energy transition period

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  • Liu, Weiyong
  • Liu, Weiwen

Abstract

The study is the initial effort to assess how technological developments impact green finance and how they both impact the sustainable development pillars. The study examines how good governance moderates this link and how two mediators—information sharing and technology penetration—operate in a cycle. Hayes reached the following conclusions after conducting his process analysis using the empirical data: technological innovations and green finance work together to promote sustainable development; good governance strengthens the relationship between technological innovations and green finance, especially when levels of technological innovations are low; and technological innovations have a positive impact on green finance through technological penetration both directly and indirectly. As a result, the research emphasizes the importance of getting money in an accessible and open technology manner. The result supports that dependable funding sources and collaborations are essential for advancing sustainable development. There are substantial policy ramifications when the minimum percentages of information coverage and technology penetration are reset to at least 6.87 % and 7.57 %, respectively.

Suggested Citation

  • Liu, Weiyong & Liu, Weiwen, 2025. "Green financial instruments: Economic, technological, and legal cycles in the development of the energy transition period," Technological Forecasting and Social Change, Elsevier, vol. 215(C).
    • Handle: RePEc:eee:tefoso:v:215:y:2025:i:c:s0040162525000393
    DOI: 10.1016/j.techfore.2025.124008
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