Journal of Environmental Assessment Policy and Management

This study conducts an empirical analysis of the impact of climate risk on Environmental, Social, and Governance (ESG) investments in Asia. Using monthly data from 2015 to 2022 for 11 Asian countries and applying wavelet coherence analysis with a panel Auto-regressive Distributed Lag Model (ARDL) cointegration approach, the study concludes that (1) ESG and stock market returns are positively correlated during economic turmoil in China and Malaysia; (2) climate risk positively influences ESG returns, suggesting that it enhances returns during uncertain times rather than having a detrimental effect; (3) returns on conventional assets are negatively impacted by climate risk; and (4) ESG investments serve as an effective hedge against climate risk and provide a sound strategy for portfolio diversification in the Asian market.

Reducing environmental degradation due to the waste of natural resources and increasing global warming have been the main sustainable development goals for preserving biodiversity and ensuring sustainable growth established by the United Nations since 2015. Elucidating these goals requires effective and efficient environmental policies, substantial financial resources, and technological innovation to ensure an energy transition and reduce fossil fuel divestment and polluting technologies. In this context, this paper aims to examine the impact of environmental sustainability policy and institutions on green economic growth. Using a CS-ARDL panel model for a sample of 69 low-income countries in Africa, Asia, Europe, and North America over the period 2005-2020, we find that the effect of environmental sustainability policy and institutions on green GDP per capita is positive and statistically significant. The intensity of this effect is moderated by increases in renewable energy consumption and decreases in CO₂ emissions. Furthermore, the subsample analysis indicates that the relationships between environmental sustainability policy and institutions and green growth remain positive for the four continents. In the long run, the intensity of this effect is stronger in Europe and Asia than in America and Africa. Moreover, these impacts are more effective as renewable energy increases and CO₂ emissions decrease. It seems to be more important in Europe and Asia than in America and Africa. Overall, low-income countries should pay particular attention to policy and institutional index for environmental sustainability to promote green growth, taking into account the moderating effect of renewable energy consumption and CO₂ emissions reduction.

To fight climate change and reduce their increasing pollution levels, developing nations must have access to worldwide public climate funds. In the view of developing nations, meeting their commitments to reduce emissions under the Paris Agreement depends on receiving funding for climate-related initiatives. According to earlier studies, financing developing nations may help them meet their climate targets. The most recent data on climate money and NDCs are used in this research to examine the subject from a practical standpoint. Two research approaches were used in this study to investigate the impact of climate funding on the objectives of recipient nations. Data indicated that it was excellent regardless of the size of the effect. Developing nations’ attempts to reduce emissions were more affected than those of the least developed nations, especially those with economies centred on tiny islands. This paper outlines how to solve the issue, but it is just the beginning. By informing their handling of climate money, investors can gain poorer nations’ confidence, according to this research.

Despite a vast body of eco-innovation literature investigating the assumption that environmental regulations encourage the implementation of eco-innovative practices, previous research on eco-innovation and environmental regulations has yielded inconsistent findings. By considering the heterogeneity of environmental regulation and eco-innovations, this study sheds light on how different environmental regulation instruments can facilitate and enhance eco-innovation practices, along with the role of environmental orientation in mediating the relationships. The study surveyed 188 managers and owners and utilised the partial least squares-structural equation model as the analytical method. Results showed that environmental regulatory mechanisms have no direct impact on eco-innovation. However, the study has found that environmentally oriented SMEs respond to strict environmental policies and regulations by undertaking eco-innovation practices. Furthermore, market-based instruments provide firms with strong environmental orientation and economic incentives to foster eco-process innovations. The study offers practical insights for policymakers and SME managers, in addition to advancing the knowledge base.

The use of fossil fuels, which is still seen as the cheapest energy source today, has increased carbon emissions and contributed to the formation of greenhouse gases, and this gas has reached levels that threaten world health. While studies on this problem often question the relationship between production volume, energy use, and carbon emissions, few studies question the effects of the financial assets, which are the providers of investments made for production purposes, on environmental degradation. This study used the fixed effect model and system GMM technique to analyse the moderating effect of green finance in connection to financial openness and environmental quality from 2015 to 2020 in the CEE countries. Findings show, among other things that (1) CO₂ in CEE countries is still growing; (2) financial openness is a positive and significant indicator of CO₂ emission; and (3) that green finance usage reduces the positive impact of financial openness on CO₂ emissions. The study suggests that financial openness, renewable energy (RE) investment, and green technology innovation (GTI)– consistently drive CO₂ emissions in CEE countries. The study suggests that policies promoting green finance, particularly RE investment and GTI, can help mitigate environmental degradation and reduce CO₂ emissions.