Md. Sazib Miyan (2025) The role of green finance and innovation towards sustainable development: revisiting the existence of Environmental Kuznets Curve (EKC) in middle-income developing economies. Doctoral thesis, Sunway University.
Full text not available from this repository.Abstract
Environmental concerns are gaining prominence as the world grapples with challenges such as climate change, global warming, pollution, resource depletion, and biodiversity loss. These issues manifest rising sea levels, extreme weather, natural disasters, and ecosystem degradation. Despite the urgency, existing studies often overlook the dual impact of green finance (GFIN) and green technology innovation (GTI) on environmental sustainability, especially using CO2 emissions and the Ecological Footprint (EF) as dual proxies in middle-income developing economies. Addressing this gap, this study examines 45 middle-income developing countries from 2000 to 2020, testing the Environmental Kuznets Curve (EKC) hypothesis through Method of Moments Quantile Regression (MMQR), alongside robustness checks using Bootstrap Quantile Regression (BSQR), Feasible Generalized Least Squares (FGLS), and Panel Corrected Standard Errors (PCSE).Findings reveal a negative association of GFIN, renewable energy use (REN), and population growth (POP) with environmental degradation, signaling their potential in mitigating pollution. In contrast, GTI, non renewable energy use (NRE), globalization (GLO), and GDP, exhibit positive relationships with CO2 emissions and EF, reflecting transitional challenges. While the EKC hypothesis holds for CO2 emissions, it is not supported when EF is considered. Additionally, GFIN negatively impacts economic growth across all quantiles, contrasting with the positive effects observed for other explanatory variables. This suggests that while green finance contributes to environmental sustainability, it may pose short-term economic trade-offs, requiring careful policy measures to balance economic growth with ecological objectives. Furthermore, the Dumitrescu–Hurlin panel Granger causality tests reveal a bidirectional link between green finance and GDP, indicating mutual reinforcement. GDP also Granger-causes green innovation, suggesting that economic growth drives innovation. Other variables—CO₂, EF, REN, NRE, POP, and GLO—also show strong bidirectional causality, underscoring the interdependence between economic and environmental factors. Finally, this study emphasizes the need for targeted green financial mechanisms, renewable energy transition, and sustainable innovation to harmonize economic growth with ecological preservation, offering actionable insights for policymakers and stakeholders.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Uncontrolled Keywords: | green finance, green technology innovation; sustainable development; middle-income developing economies; Environmental Kuznets Curve; EKC |
| Subjects: | H Social Sciences > HC Economic History and Conditions |
| Divisions: | Sunway University > Sunway University Business School |
| Depositing User: | Ms Yong Yee Chan |
| Date Deposited: | 24 Jul 2026 08:22 |
| Last Modified: | 24 Jul 2026 08:22 |
| URI: | http://repository.sunway.edu.my/id/eprint/3545 |
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