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Assessing the impact of green energy and finance on environmental performance in China and Japan

Author

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  • Abdulrasheed Zakari

    (University of Wollongong
    Alma Mater Europaea ECM)

  • Bahareh Oryani

    (The State University of New York)

  • Rafael Alvarado

    (Universidad Espíritu Santo)

  • Kadir Mumini

    (Federal Polytechnic Ede)

Abstract

China and Japan have enjoyed significant economic boosts due to technological progress. However, these are accompanied by serious environmental pollution, which has brought China and Japan’s commitments to climate treaties into question. Therefore, this study attempts to contribute to the literature on green finance, energy, and the environmental sustainability nexus. We investigate the role of green finance and energy in the environmental performance of Asia (China and Japan) between 2010 and 2020. The empirical results show that green finance promotes environmental sustainability, suggesting that green finance reduces environmental pollution. Similarly, green energy positively affects environmental performance; this validates the theory that green energy technology is environmentally friendly. Therefore, we recommend promoting the green energy system through subsidies and grants.

Suggested Citation

  • Abdulrasheed Zakari & Bahareh Oryani & Rafael Alvarado & Kadir Mumini, 2023. "Assessing the impact of green energy and finance on environmental performance in China and Japan," Economic Change and Restructuring, Springer, vol. 56(2), pages 1185-1199, April.
    • Handle: RePEc:kap:ecopln:v:56:y:2023:i:2:d:10.1007_s10644-022-09469-2
    DOI: 10.1007/s10644-022-09469-2
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    6. Juan Wu, 2024. "Role of green finance and carbon accounting in achieving sustainability," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-7, December.
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