RETRACTED: Financial Risk, Renewable Energy Technology Budgets, and Environmental Sustainability: Is Going Green Possible?

Since the industrial revolution, countries have been facing the issue of climate change and environmental degradation. It is widely believed that the investment in research and development of renewable energy can play a pivotal role in fighting against climate change. However, the financial risk als...

Full description

Saved in:
Bibliographic Details
Main Authors: Mahmood Ahmad, Zahoor Ahmed, Beata Gavurova, Judit Oláh
Format: Article
Language:English
Published: Frontiers Media S.A. 2022-05-01
Series:Frontiers in Environmental Science
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fenvs.2022.909190/full
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849335997073981440
author Mahmood Ahmad
Zahoor Ahmed
Zahoor Ahmed
Beata Gavurova
Judit Oláh
Judit Oláh
author_facet Mahmood Ahmad
Zahoor Ahmed
Zahoor Ahmed
Beata Gavurova
Judit Oláh
Judit Oláh
author_sort Mahmood Ahmad
collection DOAJ
description Since the industrial revolution, countries have been facing the issue of climate change and environmental degradation. It is widely believed that the investment in research and development of renewable energy can play a pivotal role in fighting against climate change. However, the financial risk also increases, which can influence renewable energy technology R&D budgets and environmental sustainability. Nevertheless, the current literature is silent on the linkage between financial risk, renewable energy technology budgets, and environmental quality. Against this backdrop, this article attempts to explore the dynamic linkage between financial risk, renewable energy technology budgets, and ecological footprint under the Environment Kuznets Curve (EKC) framework in Organization for Economic Cooperation and Development (OECD) countries. For this purpose, yearly data from 1984 to 2018 is employed using the advanced panel data estimation methods that address the slope heterogeneity and cross-sectional dependence issues. The results indicate that improvement in the financial risk index significantly decreases footprints, and renewable energy technology budgets also promote environmental sustainability. Economic globalization poses a significant negative effect on the ecological footprint, while energy consumption adds to the footprint. Moreover, the findings validated the EKC hypothesis in OECD countries. In addition, a unidirectional causality is detected from financial risk to renewable technology energy budgets, while bidirectional causality exists between financial risk and ecological footprint, and between financial risk, and economic growth. Based on the empirical findings, policy suggestions are presented to promote environmental sustainability.
format Article
id doaj-art-5e7d1c8bea3f441e90bc324e2aa73d94
institution Kabale University
issn 2296-665X
language English
publishDate 2022-05-01
publisher Frontiers Media S.A.
record_format Article
series Frontiers in Environmental Science
spelling doaj-art-5e7d1c8bea3f441e90bc324e2aa73d942025-08-20T03:45:07ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2022-05-011010.3389/fenvs.2022.909190909190RETRACTED: Financial Risk, Renewable Energy Technology Budgets, and Environmental Sustainability: Is Going Green Possible?Mahmood Ahmad0Zahoor Ahmed1Zahoor Ahmed2Beata Gavurova3Judit Oláh4Judit Oláh5Business School, Shandong University of Technology, Zibo, ChinaDepartment of Accounting and Finance, Faculty of Economics and Administrative Sciences, Cyprus International University, Nicosia, TurkeyDepartment of Economics, School of Business, AKFA University, Tashkent, UzbekistanFaculty of Mining, Ecology, Process Control and Geotechnologies, Technical University of Košice, Košice, SlovakiaFaculty of Economics and Business, University of Debrecen, Debrecen, HungaryDepartment of Public Management and Governance, College of Business and Economics, University of Johannesburg, Johannesburg, South AfricaSince the industrial revolution, countries have been facing the issue of climate change and environmental degradation. It is widely believed that the investment in research and development of renewable energy can play a pivotal role in fighting against climate change. However, the financial risk also increases, which can influence renewable energy technology R&D budgets and environmental sustainability. Nevertheless, the current literature is silent on the linkage between financial risk, renewable energy technology budgets, and environmental quality. Against this backdrop, this article attempts to explore the dynamic linkage between financial risk, renewable energy technology budgets, and ecological footprint under the Environment Kuznets Curve (EKC) framework in Organization for Economic Cooperation and Development (OECD) countries. For this purpose, yearly data from 1984 to 2018 is employed using the advanced panel data estimation methods that address the slope heterogeneity and cross-sectional dependence issues. The results indicate that improvement in the financial risk index significantly decreases footprints, and renewable energy technology budgets also promote environmental sustainability. Economic globalization poses a significant negative effect on the ecological footprint, while energy consumption adds to the footprint. Moreover, the findings validated the EKC hypothesis in OECD countries. In addition, a unidirectional causality is detected from financial risk to renewable technology energy budgets, while bidirectional causality exists between financial risk and ecological footprint, and between financial risk, and economic growth. Based on the empirical findings, policy suggestions are presented to promote environmental sustainability.https://www.frontiersin.org/articles/10.3389/fenvs.2022.909190/fullfinancial riskrenewable energy technology budgetsenvironmental sustainabilityOECDCS-ARDL
spellingShingle Mahmood Ahmad
Zahoor Ahmed
Zahoor Ahmed
Beata Gavurova
Judit Oláh
Judit Oláh
RETRACTED: Financial Risk, Renewable Energy Technology Budgets, and Environmental Sustainability: Is Going Green Possible?
Frontiers in Environmental Science
financial risk
renewable energy technology budgets
environmental sustainability
OECD
CS-ARDL
title RETRACTED: Financial Risk, Renewable Energy Technology Budgets, and Environmental Sustainability: Is Going Green Possible?
title_full RETRACTED: Financial Risk, Renewable Energy Technology Budgets, and Environmental Sustainability: Is Going Green Possible?
title_fullStr RETRACTED: Financial Risk, Renewable Energy Technology Budgets, and Environmental Sustainability: Is Going Green Possible?
title_full_unstemmed RETRACTED: Financial Risk, Renewable Energy Technology Budgets, and Environmental Sustainability: Is Going Green Possible?
title_short RETRACTED: Financial Risk, Renewable Energy Technology Budgets, and Environmental Sustainability: Is Going Green Possible?
title_sort retracted financial risk renewable energy technology budgets and environmental sustainability is going green possible
topic financial risk
renewable energy technology budgets
environmental sustainability
OECD
CS-ARDL
url https://www.frontiersin.org/articles/10.3389/fenvs.2022.909190/full
work_keys_str_mv AT mahmoodahmad retractedfinancialriskrenewableenergytechnologybudgetsandenvironmentalsustainabilityisgoinggreenpossible
AT zahoorahmed retractedfinancialriskrenewableenergytechnologybudgetsandenvironmentalsustainabilityisgoinggreenpossible
AT zahoorahmed retractedfinancialriskrenewableenergytechnologybudgetsandenvironmentalsustainabilityisgoinggreenpossible
AT beatagavurova retractedfinancialriskrenewableenergytechnologybudgetsandenvironmentalsustainabilityisgoinggreenpossible
AT juditolah retractedfinancialriskrenewableenergytechnologybudgetsandenvironmentalsustainabilityisgoinggreenpossible
AT juditolah retractedfinancialriskrenewableenergytechnologybudgetsandenvironmentalsustainabilityisgoinggreenpossible