Green finance, renewable energy investment, and environmental protection: empirical evidence from B.R.I.C.S. countries

Environmental degradation has become a severe concern for the globe; therefore, policymakers in emerging economies are trying to meet the environmental standards. Nowadays, economies have shifted their energy pattern from non-renewable to renewable energy (R.E.U.), but its cost is too high. Undoubtedly, the financial sector also performs well in facilitating such green activities. Therefore, the current study investigates the role of R.E.U. and green finance in environmental quality and collects the data for B.R.I.C.S. economies from 2000 to 2018. The study uses quantile regressions and other advanced techniques to deal with the problems of cross-sectional dependence (C.S.D.) and heterogeneity. The estimated outcomes show that green finance, R.E.U. consumption, and technical innovations perform well in securing the environment by reducing carbon emissions. Likewise, the environmental quality in selected economies is deteriorating due to the rise in non-R.E.U. consumption, economic progress, F.D.I., and trade openness. Therefore, it is time to reshape the local, national and regional growth policies concerning a green investment that can secure our environment. Also, this study proposes future pathways for green finance and other factors relevant to a sustainable environment.