Does green finance counteract the climate change mitigation: Asymmetric effect of renewable energy investment and R&D

Economies must decarbonize their energy sectors to meet their climate-policy objectives. This requires high investment in low-carbon energy infrastructure; however, there is a shortage of financial resources. In this study, based on data from 2008 to 2018 G-20 economies, we estimated the impact of green finance and digital finance on environmental protection using a quantile regression model. The results show that CO2 emissions in the environment are reduced by green finance, renewable energy investment, and technological innovation, as shown in the panel quantile regression findings, whereas CO2 emissions are increased by factors such as economic growth, energy consumption, trade, and foreign direct investment. This study proposes different ways for policymakers to increase the impact of green finance, promote digital finance, and create a carbon-trading market for sustainable development.