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Impact Assessment of Climate Mitigation Finance on Climate Change in South Asia

Author

Listed:
  • Noman Rasheed

    (Department of Economics, Kohat University of Science and Technology, Kohat 26000, Pakistan)

  • Dilawar Khan

    (Department of Economics, Kohat University of Science and Technology, Kohat 26000, Pakistan)

  • Aisha Gul

    (Department of Economics, Kohat University of Science and Technology, Kohat 26000, Pakistan)

  • Róbert Magda

    (Hungarian National Bank–Research Center, John von Neumann University, 6000 Kecskemét, Hungary
    Vanderbijlpark Campus, Northwest University, Vanderbijlpark 1900, South Africa)

Abstract

Climate change is considered the greatest threat to human life in the 21st century, bringing economic, social and environmental consequences to the entire world. Environmental scientists also expect disastrous climate changes in the future and emphasize actions for climate change mitigation. The objective of this study was to explore the influence of climate mitigation finance on climate change in the region most vulnerable to climate shock, i.e., South Asia, in the period from 2000 to 2019. The panel autoregressive distributed lag model was used to estimate the influence of climate mitigation finance on climate change. The findings of this study demonstrate that, in the long-run, climate mitigation finance has a significant role in mitigating climate change, while in the short-run, climate mitigation finance has an insignificant effect on climate change. The result also shows that, in the long-run, climate change has a negative causal relation with GDP and globalization, but it has a positive causal relationship with energy consumption. The short-term effects of all independent variables are insignificant. Finally, based on the outcome of this study, several policy measures are recommended in order to mitigate climate change.

Suggested Citation

  • Noman Rasheed & Dilawar Khan & Aisha Gul & Róbert Magda, 2023. "Impact Assessment of Climate Mitigation Finance on Climate Change in South Asia," Sustainability, MDPI, vol. 15(8), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:8:p:6429-:d:1119903
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