Green Finance and the Quality of Economic Growth: The Moderating Role of Green Innovation in The Growth Environment Nexus

Abstract

Zhang Rui

This study investigates the correlation between green finance and the quality of economic growth, green innovation as a moderator. It has an emphasis on the ability of green finance to foster better quality economic growth and on how the effectiveness of green finance varies depending on the type of green innovation. Green finance is applied as the core explanatory variable, and green innovation as the conditional variable to examine the influence on growth quality. It includes CO�?? emissions as a proxy for environmental pressure, and energy use and trade openness as control variables. The study examines the direct link between green finance and growth quality using cross-country panel data and interaction between green finance and green innovation. The framework is an integration of financial, technological, economic, and environmental aspects in a unified empirical context. It offers implications to policymakers who want to orchestrate financial development, technological advancement, and environmental sustainability. It also adds to the green finance literature in highlighting that transformation of economic and financial resources into productive, innovative and 'cleaner' economic activities may be critical for the economic and environmental benefits of green finance.

PDF