Assessing the connectedness between green finance, financial developments, traditional energy consumption, economic growth, population aging and environmental degradation in RECP economies: A deep learning-based analysis.

Journal: Journal of environmental management
Published Date: Aug 18, 2025

Abstract

Climate change is a global pressing issue that cannot tackle without curbing CO emissions, which are a major contributor to climate change. Therefore, this study investigates the influencing effect of green finance especially in renewable energy, financial developments, traditional energy consumption, economic growth and population aging on environmental degradation for emerging economies of RECP from 2000Q1-2023Q4. We have used a deep learning-based multivariate regression model and robustness estimation tests such as structural learning-based Bayesian neural network and two-way period of random effect to analyze the influencing effect of explanatory variables on the dependent variable. The findings of the study signify that green finance in renewable energy significantly reduces CO emissions, whereas financial developments, traditional energy consumption, economic growth and population aging are assessed to have a positive impact on CO emissions which enhances environmental degradation. In addition, the findings of constraint-based learning approach of Bayes network topology represented that CO emissions are also conditionally dependent on traditional energy consumption, economic growth and population aging by given the percentage effect of financial developments. This study thus suggests that the emerging economies of RECP need to develop a well-structured economic system to promote green fundings in renewable energy and adopt low-carbon technologies for climate change issues.

Authors

  • Hafiz Muhammad Naveed
    College of Management, Shenzhen University, Guangdong, 518060, PR China. Electronic address: Hafiznaveed778@gmail.com.
  • Arshian Sharif
    Department of Accounting, Economics and Finance, Sunway Business School, Sunway University, Malaysia; VIZJA University, Warsaw, Poland; College of International Studies, Korea University, Seoul, South Korea. Electronic address: arshian.aslam@gmail.com.
  • Muhammad Farhan Bashir
    Business School, Chengdu University of Technology, Chengdu, 610059, Sichuan, PR China; Department of Economics and Finance, College of Business Administration, Taif University, Taif City, Saudi Arabia. Electronic address: farhan.paks89@gmail.com.
  • Mamdouh Abdulaziz Saleh Al-Faryan
    Board Member and Head of the Scientific Committee at the Saudi Economic Association, Riyadh, Saudi Arabia. Electronic address: Al-Faryan@hotmail.com.
  • Yanchun Pan
    College of Management, Shenzhen University, Guangdong, 518060, PR China. Electronic address: panyc@szu.edu.cn.

Keywords

No keywords available for this article.

External Resources

Popular Topics
Recent Journals