Green Finance And Climate Change Performance: An International Analysis Of Developing Countries

Abstract

This study examines the impact of green finance on climate change performance in developing countries by considering factors such as human ecology, green proxies, and economic growth. It utilizes a dataset of 12 developing countries selected based on data availability across different continents. The research aims to fill gaps in the literature by analyzing the effects using a long panel time-series dataset from 2007 to 2019. The FGLS estimation technique is employed. The findings demonstrate significant relationships between climate change performance and variables such as urbanization, human development index, trade openness, green innovation, and lagged green finance, indicating a positive correlation with the Climate Change Performance Index (CCPI). Conversely, a negative correlation is observed with variables such as GDP per capita and CO2 emissions. These results highlight the importance of human ecology, green proxies, and economic growth in shaping climate change performance. The study contributes valuable insights into the role of sustainable finance practices in promoting positive climate change outcomes in developing countries.