Does green finance matter for environmental safety? empirical evidence from the atomic power states

The heightened risk of global warming has attracted the special attention of researchers and policymakers towards the linkage between economic growth and environmental protection. Thus, this study examines the effects of FDI inflow, GDP, trade openness, urbanisation level, and nuclear energy consumption on environmental pollution factor CO2 emissions by using the STIRPAT model (1997). Furthermore, this study also examines the moderating role of green financing by analysing the data of eight nuclear power states from 2008 to 2019. The results revealed that foreign direct investment, gross domestic product, and urbanisation as increased contributors to CO2 emissions, thus damaging the environment. Whereas trade openness, nuclear energy consumption, and green financing have an inverse relation with CO2 which means they positively contribute to the environment of the nuclear power states. The outcomes also reveal that green financing negatively moderates the relationships and positively contributes toward environmental safety (reduces CO2). The findings have paved the way for the regulators to increase their focus on green finance to play a positive role in environment preservation and conservation alongside economic growth. Not only that, but the results also imply that the policymakers should direct their efforts to promote nuclear energy production and consumption to cater to the surging energy needs.