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Do renewable energy investment and financial development mitigate climate change?

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  • Chen, Xia
  • Zhang, Huimin
  • Zhao, Xin Xin
  • Gong, Qiang
  • Chang, Chun-Ping

Abstract

This research explores how renewable energy investment and financial development affect climate change using panel data of 26 OECD countries and 18 non-OECD countries from 1996 to 2019. Several conclusions are drawn from empirical analysis. First, there exist cointegration relationships among renewable energy investment, financial development, and climate change. Second, the effects of renewable energy investment and financial development on climate change exhibit heterogeneity. In the full sample and for OECD countries, renewable energy investment and financial development have a negative impact on climate change, while for non-OECD countries, renewable energy investment has a positive impact on climate change.

Suggested Citation

  • Chen, Xia & Zhang, Huimin & Zhao, Xin Xin & Gong, Qiang & Chang, Chun-Ping, 2024. "Do renewable energy investment and financial development mitigate climate change?," Journal of Asian Economics, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:asieco:v:93:y:2024:i:c:s1049007824000447
    DOI: 10.1016/j.asieco.2024.101749
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    More about this item

    Keywords

    Renewable energy investment; Financial development; Climate change;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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