A step toward the attainment of carbon neutrality and SDG-13: Role of financial depth and green technology innovation

Following the recommendations of COP28 and Sustainable Development Goal -13 (Climate Action), the present study examines the role of financial depth and green technology innovation in carbon neutrality and climate change. This study measures the relationship between green innovation, technological innovation, ICT, financial depth, economic growth, carbon emission, and ecological footprint from 1990-2021 in the USA. The autoregressive distributed lag (ARDL) model examines the relationship between the above-mentioned variables and their impacts on each other. Results reveal that green innovation, technological innovation, ICT, and financial depth significantly negatively impact ecological footprint and carbon emissions in both the short and long run. In contrast, economic growth positively impacts carbon emissions and ecological footprint. Green and financial innovation-centric policies are suggested to the USA to attain net zero emission and SDG-13. • Measured the nexus between green innovations, technological innovations, ICT, financial depth, economic growth, carbon emissions and ecological footprint • Employed BARDL and Granger causality test over data from 1990 to 2021. • Green innovations, technological innovations, ICT, and financial depth have significant negative impacts on ecological footprint and carbon emissions in both short and long run. • Economic growth has positive impact on carbon emissions and ecological footprint in long run. • In short run, economic growth reduces carbon emission and increases the ecological footprint. • Policy implications are suggested to government authorities and policymakers of USA in line with carbon neutrality, environmental sustainability. • Effective use of green innovations, technological innovations, ICT, and financial depth is need of the hour.