IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v74y2025ics0275531924004847.html
   My bibliography  Save this article

Green finance for achieving environmental sustainability in G7 countries: Effects and transmission channels

Author

Listed:
  • Omri, Henda
  • Jarraya, Bilel
  • Kahia, Montassar

Abstract

This study examines the effectiveness of FinTech (Financial Technology), green finance, and environmental policy in achieving environmental sustainability across G7 countries from 2012 to 2022. By implementing the Hayes Process Macro, our findings show that (i) green finance is positively related to environmental sustainability by reducing CO₂ (carbon dioxide) emissions; (ii) environmental innovation mediates the relationship between green finance and environmental sustainability. Green innovation further acts as a crucial transmission mechanism, translating the inputs from green finance into tangible reductions in ecological footprints and CO₂ emissions; (iii) FinTech, as a moderator, enhances the effectiveness of green finance, particularly in fostering environmental innovation and sustainability efforts; (iv) environmental policy moderates the mediating effect of green finance on environmental sustainability via environmental innovation; (v) the synergy between FinTech and environmental policy optimizes the environmental benefits of green finance. The findings of this study have several significant implications for policymakers, financial institutions, and environmental advocates both within the G7 countries and globally.

Suggested Citation

  • Omri, Henda & Jarraya, Bilel & Kahia, Montassar, 2025. "Green finance for achieving environmental sustainability in G7 countries: Effects and transmission channels," Research in International Business and Finance, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:riibaf:v:74:y:2025:i:c:s0275531924004847
    DOI: 10.1016/j.ribaf.2024.102691
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531924004847
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2024.102691?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    FinTech; Environmental innovation; Green Finance; environmental policy; environmental sustainability; Sustainable finance;
    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
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:74:y:2025:i:c:s0275531924004847. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.