Nexus between green finance and climate change mitigation in N-11 and BRICS countries: empirical estimation through difference in differences (DID) approach

Nawaz, M A, Seshadri, U, Kumar, P, Aqdas, R, Patwary, A K and Riaz, M (2021) Nexus between green finance and climate change mitigation in N-11 and BRICS countries: empirical estimation through difference in differences (DID) approach. Environmental Science and Pollution Research, 28 (6). pp. 6504-6519. ISSN 0944-1344

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Abstract

Green finance is inextricably linked to investment risk, particularly in emerging and developing economies (EMDE). This study uses the difference in differences (DID) method to evaluate the mean causal effects of a treatment on an outcome of the determinants of scaling up green financing and climate change mitigation in the N-11 countries from 2005 to 2019. After analyzing with a dummy for the treated countries, it was confirmed that the outcome covariates: rescon (renewable energy sources consumption), population, FDI, CO2, inflation, technical corporation grants, domestic credit to the private sector, and research and development are very significant in promoting green financing and climate change mitigation in the study countries. The probit regression results give a different outcome, as rescon, FID, CO2, Human Development Index (HDI), and investment in the energy sector by the private sector that will likely have an impact on the green financing and climate change mitigation of the study countries. Furthermore, after matching the analysis through the nearest neighbor matching, kernel matching, and radius matching, it produced mixed results for both the treated and the untreated countries. Either group experienced an improvement in green financing and climate change mitigation or a decrease. Overall, the DID showed no significant difference among the countries.

Affiliation: Skyline University College
SUC Author(s): Kumar, P ORCID: https://orcid.org/0000-0001-9790-6754
All Author(s): Nawaz, M A, Seshadri, U, Kumar, P, Aqdas, R, Patwary, A K and Riaz, M
Item Type: Article
Uncontrolled Keywords: Difference in difference, CO2, Economic development, Probit regression, N-11 and BRICS countries
Subjects: A Business and Management > AE Economics
A Business and Management > AV Sustainable Development
Divisions: Skyline University College > School of Business
Depositing User: Mr Veeramani Rasu
Date Deposited: 11 Feb 2022 14:09
Last Modified: 11 Feb 2022 14:09
URI: https://research.skylineuniversity.ac.ae/id/eprint/88
Publisher URL: https://doi.org/10.1007/s11356-020-10920-y
Publisher OA policy: https://v2.sherpa.ac.uk/id/publication/7949
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