The Impact of Green Finance, and Eco-Innovation on CO2 Emissions: The Pool Mean Group Evidence from ASEAN Countries in the Context of SDGs

Abstract

This study investigates the influence of green finance, green technology, and eco-innovation on CO2 emissions within ASEAN countries, framed within the context of the Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation and Infrastructure), and SDG 13 (Climate Action). Utilizing data from 2002 to 2019 and adopting the Pool Mean Group (PMG) methodology, our analysis sheds light on the critical dynamics between sustainable financial practices, technological advancement in green technologies, and eco-innovative approaches towards achieving significant CO2 emissions reduction. Our findings reveal that green finance significantly empowers the deployment of green technologies and eco-innovations, leading to a notable decrease in CO2 emissions across the studied nations. The study highlights the importance of country-specific policy interventions that cater to the unique economic and technological contexts of ASEAN countries to optimize the contribution of green finance and technology to climate action. These insights offer a valuable guide for policymakers, financial institutions, and other stakeholders in harnessing green finance and technology for environmental sustainability, in alignment with the SDGs. This research contributes to the discourse on sustainable development, emphasizing the pivotal role of finance and innovation in environmental stewardship and carbon reduction efforts across ASEAN countries.