Association of Green Finance, Renewable Energy Investments, and Environmental Quality with Sustainable Development: Evidence from ASEAN Economies

  • Trinh Huu Nguyen Ho Chi Minh City University of Industry and Trade, Ho Chi Minh City, Vietnam.
  • Thanh Dang Nguyen Thu Dau Mot University, Binh Duong, Vietnam.
  • Oanh Thi Kim Thai College of Economics, Vinh University, Vietnam
  • Thuy Ngoc Phung Hung Vuong Primary School, District 5, Ho Chi Minh City, Vietnam.
  • Tung Quang Nguyen Nam Thien Law Office


Green Finance, Green Energy Investments, Environmental Quality, Sustainable Development, Economic Growth.


Environmental quality holds significant importance due to the global pursuit of achieving net-zero emissions by 2050. This study endeavours to investigate the interplay among green financing, investments in the energy sector, environmental degradation, and the pursuit of sustainable development. Focused on ASEAN economies from 2013 to 2022, we employ a panel fixed effect model to analyse the empirical relationships. Sustainable development is gauged through adjusted net savings, environmental degradation through carbon emissions, and green finance through various investments in green energy, green credit, and green securities. Our findings indicate a positive association between green finance and sustainable development, while environmental degradation negatively impacts sustainable development in ASEAN countries. Employing the system GMM method reaffirms the robustness of our results. These findings offer actionable insights for governments, regulators, and policymakers in the studied nations.

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