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Assessing the impact of green energy and finance on environmental performance in China and Japan

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Abstract

China and Japan have enjoyed significant economic boosts due to technological progress. However, these are accompanied by serious environmental pollution, which has brought China and Japan’s commitments to climate treaties into question. Therefore, this study attempts to contribute to the literature on green finance, energy, and the environmental sustainability nexus. We investigate the role of green finance and energy in the environmental performance of Asia (China and Japan) between 2010 and 2020. The empirical results show that green finance promotes environmental sustainability, suggesting that green finance reduces environmental pollution. Similarly, green energy positively affects environmental performance; this validates the theory that green energy technology is environmentally friendly. Therefore, we recommend promoting the green energy system through subsidies and grants.

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The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

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Authors and Affiliations

  1. School of Business, Faculty of Business and Law, University of Wollongong, Wollongong, Australia

    Abdulrasheed Zakari

  2. Alma Mater Europaea ECM, Maribor, Slovenia

    Abdulrasheed Zakari

  3. Department of Technology and Society, The State University of New York, Incheon, Republic of Korea

    Bahareh Oryani

  4. Esai Business School, Universidad Espíritu Santo, Samborondon, 091650, Ecuador

    Rafael Alvarado

  5. Department of Business Administration and Management, Federal Polytechnic Ede, Ede, Osun State, Nigeria

    Kadir Mumini

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  1. Abdulrasheed Zakari
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Zakari, A., Oryani, B., Alvarado, R. et al. Assessing the impact of green energy and finance on environmental performance in China and Japan. Econ Change Restruct 56, 1185–1199 (2023). https://doi.org/10.1007/s10644-022-09469-2

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