FINANCIAL PERFORMANCE, GREEN BOND MARKET DEVELOPMENT AND THE RISE OF RENEWABLE ENERGY PROJECTS

This research examines the global effects of financial development and green bond issuance on renewable energy consumption from 2010 to 2022. Results reveal that a 1% increase in green bond value leads to a 0.32% rise in renewable energy consumption, highlighting the essential role of green bonds in promoting sustainability. The financial development index also shows a positive influence, indicating the need for robust financial infrastructure. Conversely, private participation in energy projects correlates negatively, favoring non-renewable resources. Increased electricity consumption is linked to a decrease in renewable energy expansion, while GDP size and the GINI index further underscore potential disparities between economic growth and sustainability. To enhance renewable energy growth, a multifaceted policy approach is suggested, focusing on developing the green bond market, enforcing transparent regulations, advancing digital financial markets, alleviating regional poverty and promoting localized green electricity initiatives.