Green finance is one of the most important ways to help companies achieve green transformation and development. We construct a quasi-natural experiment with the “Green Credit Guidelines” and establish a difference-in-differences model to empirically test the implementation effect of the green credit policy in China. The results show that after the implementation of China’s green credit policy, the debt financing scale of listed companies in heavily polluting industries has decreased significantly, the debt financing cost has increased significantly, and the debt financing maturity has been shortened significantly, indicating that the green credit policy has inhibited the debt financing of heavily polluting enterprises. We further find that this inhibition has also been affected by the nature of controlling shareholders, environmental information disclosure levels, regional environmental regulations and regional financial development levels. China’s green credit policy has played a role in guiding listed companies to go green through the redistribution of debt financing.

The nexus between corporate environment, social, and governance (ESG) performance and the consequent financial performance have been extensively explored in the literature. However, little is known whether the investment in ESG endeavors has any implication for the cost of capital of an enterprise. The present study investigates the impact of ESG performance of top global technology leading firms on their cost of capital. Panel data fixed effects and random effects and generalized method of moment (GMM) regression estimation techniques have been applied to ascertain this relationship during a period of eight years (2010–2017). For a deeper insight, we segregate the cost of capital into the cost of equity and cost of debt. The empirical outcomes reveal that ESG performance is positively associated with both measures of the cost of capital i.e., cost of equity and cost of debt. It suggests that socially responsible top global technology leaders bear a higher cost of capital as investors perceive ESG as an additional financial burden and do not treat ESG costs as a value-added factor. Hence, corporate managers shall rationalize investment in ESG undertakings to curtail their cost of capital. Based on these findings, the policy prescriptions are discussed for the concerned stakeholders.

The development of modern finance has played a catalytic role in the economic transition to renewable and clean energy, which in turn has an impact on total factor productivity (TFP). However, existing studies have not together addressed financing methods, carbon emissions, and TFP. We analyse how different financing methods affect TFP through the carbon reduction channel. Using data from 1995 to 2019 for 23 major carbon emitters, we adopt a mediation effect model with Stata 17.0. We draw three conclusions. First, financing methods have a differentiated impact on TFP. For every unit increase in debt financing relative to equity financing, TFP decreases by 0.058 units (overall level) or 0.056 units (welfare level). Second, financing has a mediating effect on TFP through carbon emissions. Debt financing reduces TFP through the carbon emission reduction mechanism. The greater the scale of debt financing relative to equity financing, the greater the negative impact on TFP through the carbon emission reduction mechanism, while equity financing plays a positive role on TFP through the carbon emission reduction mechanism. Third, a heterogeneity test demonstrates that the mediating effect is most significant in developed countries and weakest in developing countries. The difference-in-difference framework based on the Equator Principles demonstrates that the marginal contribution to TFP of debt financing aimed at carbon reduction is 0.02 (overall level) and 0.012 (welfare level). From the perspective of financing methods, this study provides enlightenment for promoting carbon emission reduction and improving TFP. First, countries should strengthen the development of the green debt financing market, strengthen the disclosure of information on environmental benefits, and reverse the negative effect of debt financing. Second, they should develop the equity market to activate the role of carbon reduction channel, promote the Equator Principles in the banking industry, and encourage more banks to pay attention to environmental risks. All these financial measures can raise TFP.

This research investigates the spillover effect of the US interest rate and oil prices on renewable energy utilization in Turkey. By employing a novel bootstrap autoregressive distributed lag approach on annual data from 1985 to 2016, the empirical findings and discussions represent the first contribution to the energy economics literature. The findings of this research confirm that the US interest rate has a significant spillover effect on the use of renewable energy in Turkey through the channels of income and local interest rate. Due to limited foreign exchange reserves, high foreign debt, low international reserves, and devaluation of the local currency, the Turkish economy is highly intertwined with the US economy through international investment and trade. All these factors reinforce the spillover influence of the US interest rate on energy consumption in Turkey. Moreover, this study affirms that the price of oil has a negative impact on renewable energy use through the real income channel. In order for Turkey to realize its investments in renewable energy resources more reliably and sustainably, the study suggests that policymakers should revise the current economic growth model by making it more resilient to external shocks such as the US interest rate, exchange rate, and oil prices.

The agriculture sector remains under attack by the consistent flooding events in Pakistan as flooding water is sweeping away crops and livelihood opportunities, thus dragging the already vulnerable communities into poverty. This research has studied the adverse impacts of consistent floods (2010 to 2018) on the rural mountainous agriculture, agrarian occupation, economic system, and rise in poverty in ten districts of Hazara and Malakand divisions, Khyber-Pakhtunkhwa province, Pakistan. In total, 1000 self-administered questionnaires were deployed at the household level through judgment sampling studying the flood-affected households. Primary data for the impacts of floods on the livelihood, economic status, and poverty and correlation among them was estimated through three parallel logistic regression equations based on indexes for three separate models for the study variable to describe the flood-induced vulnerability at HH level. The results of the interrelationship of the selected variables declared Malakand division more prone to loss of livelihood, degradation of low-economic status, and increased in poverty due to flooding than Hazara division. It is concluded that floods have curtailed the agricultural livelihood on damaging crop production that has degraded locals’ economic system by reducing household’s income and savings, ending up in borrowing of money and leading to debt due to non-repayment. Households’ vulnerability has increased due to increased poverty as being more exposed to natural disasters. It calls for government intervention to safeguard poor mountainous communities of Pakistan through financial help, seeds, livestock, and technical help in times of disaster.

There are many studies on the relationship between energy consumption and various environmental indicators in Africa, and SANE countries in particular. However, there is a dearth of studies that relate external debt to CO₂ emissions, and even the ecological footprint, which is a more comprehensive environmental indicator. As such, this paper applies advanced estimation techniques to explore the role of external debt in the famous energy-growth-environmental nexus in SANE countries from 1970 to 2018. The findings from the Augmented Mean Group estimator indicate that economic growth and energy consumption increase environmental pressure in the SANE countries. On country-level results, the environmental Kuznets curve (EKC) hypothesis, monotonic increase, and monotonic decrease for ecological footprint holds in South Africa, Algeria, and Nigeria, respectively. Also, the results reveal that external debt increases the ecological footprint in South Africa and Algeria. Furthermore, the Kónya (2006) bootstrap country-level Granger causality test shows that ecological footprint is sensitive to economic growth and energy consumption in South Africa and Nigeria, while economic growth is sensitive to the ecological footprint in both Algeria and Nigeria. This study argues that stringent policy suggestions should be centred on reducing the overdependence on non-renewable energy sources since it underscores the major deteriorating state of environmental quality across SANE countries.

The core purpose of the study is to examine the asymmetric effect of foreign direct investment (FDI) and population health (measured by life expectancy index). The study takes time series data for 1980–2020. The non-linear autoregressive distributed lag (NARDL) bound testing to cointegration approach is applied to scrutinize an asymmetric association among foreign direct investment, government expenditures, trade openness, public debt, and population health. The study also used an asymmetric causality test to investigate the causal association between the measured variables. The findings affirm that cointegration exists between the variables in the occurrence of asymmetries. The asymmetric causality outcomes confirm that only positive changes in FDI have bidirectional causality to life expectancy while negative shocks have unidirectional that runs from FDI to life expectancy. The government expenditure and foreign direct investment also provided evidence of social sector health welfare in Pakistan. The output shows that increasing government expenditure can cause an increase in life expectancy while decreasing government expenditure can cause a decrease in life expectancy. The study found that investment in health care medical services is paramount to better results as far as government assistance (welfare) gains. The outcomes of the study have given numerous policy suggestions to boost life expectancy in the general public of Pakistan.

Building on the resource-based view (RBV) theory, this paper aims to shed light on how does the implementation of green strategies affect enterprises’ performance. To distinguish the evolution of strategy implementation effect, we adopt a panel estimation strategy and gather data from 3869 listed companies in China from 2008 to 2019. Furthermore, we innovatively use the semi-supervised clustering algorithm to classify the companies according to whether they implement green strategies or not and then discuss long-term and short-term financial effects of implementing green strategies. Our study finds that the implementation of green strategy facilitates a company’s long-term performance but hampers its short-term performance. According to the moderating analysis, a green strategy could negatively impact a company’s financial performance by increasing debt ratios. The findings highlight the importance of implementing green strategies and the obstacles in the process of transforming enterprises to be green.

Vehicle industry has made great contribution to human progress. However, in the process of vehicle operation, a large number of carbon compounds are emitted, which brings serious environmental problems. As one of the important means of vehicle carbon emission governance, the development of new energy vehicles (NEVs) has attracted much attention. The behavior and performance of NEV enterprises are highly concerned. Using Chinese 23 NEV vehicle enterprises’ data from 2011 to 2018, this paper evaluates the carbon emission performance with the super-efficiency slacks-based measure (SE-SBM) model based on undesirable output and then constructs STIRPAT model to analyze the influencing factors of carbon emission performance. The results indicate that, firstly, the carbon emission performance of China’s NEV enterprises is increasing year by year. Secondly, the carbon emission performance of different NEV enterprise is distinct in the same year, and the carbon emission performance of the same NEV enterprise is distinct in different year. Thirdly, technological innovation, government support, and free cash flow have significant positive impact on the carbon emission performance of NEV enterprises, while debt constraint, energy intensity, and enterprise size have a significant negative impact on the carbon emission performance of NEV enterprises.

Financial stability is of great importance especially in the context of achieving sustainable environment. The objective of this study is to fill the research gap in this area by introducing financial stability, international trade, renewable energy, and income as novel determinants of consumption-based carbon emissions. The present study is based on G-7 economies, and the time period is from 1990 to 2018. The present study employed advanced econometric techniques that can deal with problems of slope homogeneity and cross-section dependence. The cointegration analysis results show a stable long-run association between financial stability, renewable energy, international trade, national income, and consumption-based carbon emissions with structural breaks (1994 Italy’s fiscal crises, 2001 mild recession, 2008 global financial crises, and 2010 European debt crises). The results show that both in long- and short-run financial stability, exports and renewable energy significantly reduce carbon emissions. In contrast, national income and imports are found to have a significant positive effect on consumption-based carbon emissions. Policymakers in G-7 countries should focus more on financial sector stability and encourage firms to use renewable energy. Any policy that targets financial stability, exports, and renewable energy will significantly reduce carbon emissions. This study is a novel contribution to the area of consumption-based carbon emissions as it incorporates the role of financial stability for G-7 economies.