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Decoupling the role of renewable energy, green finance and political stability in achieving the sustainable development goal 13: Empirical insight from emerging economies

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  • Biswanath Behera
  • Puspanjali Behera
  • Narayan Sethi

Abstract

The quest for attaining ‘sustainable development goals (SDGs)’, especially ‘SDG‐13’, which addresses the policy towards lessening the risk of climate change, is impossible without abating CO2 emissions, which are a major contributor to climate change globally. Thus, this study inspects the decisive role played by renewable energy use, green finance, and political stability in achieving SDG‐13 by abating CO2 emissions for 14 emerging economies from 1990 to 2021. We have used the cross‐sectional autoregressive distributed lag and method of moments quantile regression estimators to analyse the impact of explanatory variables on the dependent variable, considering the probable endogeneity issue in the model. The outcome of the study signifies that renewable energy consumption and green finance substantially reduce CO2 emissions, whereas political stability is observed to have a positive impact on CO2 emissions. Moreover, the moderation effect of political stability and green finance is found to substantially reducing carbon emissions. This study thus suggests that emerging economies need a stronger political system to promote green financing and renewable energy consumption to attain SDGs by addressing climate change policy.

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  • Biswanath Behera & Puspanjali Behera & Narayan Sethi, 2024. "Decoupling the role of renewable energy, green finance and political stability in achieving the sustainable development goal 13: Empirical insight from emerging economies," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(1), pages 119-137, February.
    • Handle: RePEc:wly:sustdv:v:32:y:2024:i:1:p:119-137
    DOI: 10.1002/sd.2657
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    2. Malayaranjan Sahoo & Padmaja Bhujabal & Mohini Gupta & Muhummad Khairul Islam, 2024. "Empowering BRICS economies: The crucial role of green finance, information and communication technology and innovation in sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 7292-7308, December.
    3. Litu Sethi & Biswanath Behera & Narayan Sethi, 2024. "Do green finance, green technology innovation, and institutional quality help achieve environmental sustainability? Evidence from the developing economies," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(3), pages 2709-2723, June.
    4. Jiazhan Gao & Guihong Hua & Baofeng Huo, 2025. "Turning “green” into “gold”: A study on the impact of green finance pilot zone policy on energy carbon emission efficiency," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(1), pages 129-143, February.
    5. Jie Han & Wei Zhang & Cem Işık & Wenju Zhao & Muhammad Anas & Qinglan Zheng & Danxi Xie & Satar Bakhsh, 2024. "Sustainable development pathways: Exploring the impact of green finance on urban metabolic efficiency," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 7226-7245, December.
    6. Samuel Adomako & Xiaohui Liu & Riikka M. Sarala & Mujtaba Ahsan & Jeoung Yul Lee & Oded Shenkar, 2024. "Multinational Corporations and Social Innovation in Emerging Markets," Management International Review, Springer, vol. 64(3), pages 343-363, June.
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