Green Finance as a Catalyst for Renewable Energy and Environmental Sustainability: Evidence from Pakistan
Abstract/Description
Purpose
This study aims to assess the impact of green finance and renewable energy in enhancing environmental sustainability in Pakistan, focusing on how financial investments, policies, and renewable energy contribute to the country’s environmental goals.
Study methodology
The analysis is based on data from Pakistan between the period 2017-2022. There is a wide range of variables, with mixed availability across indicators. Green finance is segmented into renewable energy investments, energy-efficient technologies, green bonds, energy transition, and reductions in pollution, with regression analysis to quantify the influence of green finance policy on environmental sustainability.
Findings The findings indicate that while green finance and renewable energy investments have social benefits and contribute to environmental sustainability, their effectiveness is hindered by financial limitations, political instability, poor infrastructure, and weak or ineffective regulatory frameworks.
Originality/value This study offers a unique examination of the relationship between green finance, renewable energy investments, and environmental sustainability in Pakistan, providing insights into the challenges and opportunities in promoting a green economy.
Research limitations
The study is limited by data availability and the challenges of accurately measuring the impact of green finance in an evolving regulatory and economic landscape. Future research may explore more detailed models and a broader range of variables to assess the effectiveness of green finance policies.
Practical implications
The study underscores the need for a comprehensive strategy that combines fiscal incentives, technological advancements, and institutional reforms to foster a more effective green economy in Pakistan.
Social implications
This research highlights the social benefits of green finance, particularly in terms of environmental sustainability, and calls for policy and institutional changes to maximize these benefits for the well-being of Pakistani society.
JEL Classification: G21, G28, Q42, Q56, O13
Keywords
Green Finance, Renewable Energy, Environmental Sustainability, Pakistan, Carbon Emission, Climate Change
Track
Finance
Session Number/Theme
Finance - Session II
Start Date/Time
13-6-2025 2:15 PM
End Date/Time
13-6-2025 3:55 PM
Location
MCC – 12 AMAN CED Building
Recommended Citation
Mehmood, S. (2025). Green Finance as a Catalyst for Renewable Energy and Environmental Sustainability: Evidence from Pakistan. IBA SBS 4th International Conference 2025. Retrieved from https://ir.iba.edu.pk/sbsic/2025/program/6
COinS
Green Finance as a Catalyst for Renewable Energy and Environmental Sustainability: Evidence from Pakistan
MCC – 12 AMAN CED Building
Purpose
This study aims to assess the impact of green finance and renewable energy in enhancing environmental sustainability in Pakistan, focusing on how financial investments, policies, and renewable energy contribute to the country’s environmental goals.
Study methodology
The analysis is based on data from Pakistan between the period 2017-2022. There is a wide range of variables, with mixed availability across indicators. Green finance is segmented into renewable energy investments, energy-efficient technologies, green bonds, energy transition, and reductions in pollution, with regression analysis to quantify the influence of green finance policy on environmental sustainability.
Findings The findings indicate that while green finance and renewable energy investments have social benefits and contribute to environmental sustainability, their effectiveness is hindered by financial limitations, political instability, poor infrastructure, and weak or ineffective regulatory frameworks.
Originality/value This study offers a unique examination of the relationship between green finance, renewable energy investments, and environmental sustainability in Pakistan, providing insights into the challenges and opportunities in promoting a green economy.
Research limitations
The study is limited by data availability and the challenges of accurately measuring the impact of green finance in an evolving regulatory and economic landscape. Future research may explore more detailed models and a broader range of variables to assess the effectiveness of green finance policies.
Practical implications
The study underscores the need for a comprehensive strategy that combines fiscal incentives, technological advancements, and institutional reforms to foster a more effective green economy in Pakistan.
Social implications
This research highlights the social benefits of green finance, particularly in terms of environmental sustainability, and calls for policy and institutional changes to maximize these benefits for the well-being of Pakistani society.
JEL Classification: G21, G28, Q42, Q56, O13
