Does Green Finance, Digitalization, and Energy Intensity Help the Path to SDGS?
New Insight from Selected Emerging Market Countries
Keywords:
Carbon Emission, Green Financial, Digitalization, Energy Intention, Panel ARDLAbstract
The issue of climate change has always been a highlight for ecologists and leaders of various countries. This context is a complement to the study of the concept of sustainable development to preserve the environment. On the other hand, carbon emissions are the main cause of global warming and result in environmental degradation, thus requiring mitigation to achieve inclusive, sustainable development. Therefore, this study investigates the impact of green finance, digitalization, and energy intensity on carbon emissions in 18 emerging market countries during 1992–2022. This study uses a dynamic heterogeneous panel approach (panel autoregressive distributed lag model-panel ARDL) pooled mean group (PMG). The study results indicate that green finance has a positive but insignificant effect in the long term but has a short-term effect on carbon emissions. Digitalization has a significant positive effect in the long term but a significant negative effect on carbon emissions. Meanwhile, energy intention has a significant positive effect in the long term and a significant positive effect in the short term on carbon emissions in emerging market countries during the study period. These findings provide new insights into the role of these three indicators to be considered in contributing to and supporting sustainable environmental development globally and specifically in emerging market countries.
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