A team of researchers, including a member from Near East University, has conducted a comprehensive study to assess the impact of financial development and renewable energy on environmental quality in the top 10 carbon-emitting countries. This study aligns with global efforts to promote sustainable energy, economic growth, and climate action.

Covering the period from 1990 to 2018, the research employs the method of moments quantile regression (MMQR) to analyze the intricate relationships between financial development, economic expansion, renewable energy consumption, and carbon emissions. The findings indicate that while economic growth has been contributing to increased CO2 emissions, the utilization of renewable energy has been enhancing ecological quality. Furthermore, the study reveals that financial development in these countries has been positively linked with carbon emissions.

These results underscore the necessity of integrating sustainable energy sources into these countries’ overall energy mix. The study advocates for significant investments in advanced, energy-efficient technologies and green initiatives by the financial sector. This approach not only improves productivity and energy efficiency but also reduces pollution.

The study suggests the implementation of green financing strategies, such as green bonds and sovereign green bonds, to further enhance environmental quality. It emphasizes the need for policies that encourage the inclusion of green energy in these countries’ energy portfolios, thereby mitigating ecological pollution. Additionally, the research highlights the importance of removing trade barriers for clean energy sources, which can contribute to improved ecological quality.

The governments of these top-emitting nations are encouraged to promote the use of green energy sources in both households and businesses. Moreover, the financial sector is urged to play a significant role in promoting ecological quality by offering more favorable terms for green investments and consumption.

In conclusion, the research led by Near East University demonstrates that financial development and renewable energy are pivotal factors in the pursuit of environmental sustainability. The findings provide a roadmap for policymakers and financial institutions in the top carbon-emitting countries to balance economic growth with ecological preservation and support the global transition to a low-carbon economy.

For further details, access the original paper from the publisher’s link:

https://link.springer.com/article/10.1007/s11356-023-27946-7#Sec17