ASSESSING FINANCIAL DEVELOPMENT'S AND GREEN TECHNOLOGICAL INNOVATION IMPACT ON ENVIRONMENTAL QUALITY IN INDIA: A MODEL-BASED APPROACH

Several studies have explored the relationship between environmental degradation and economic growth or financial development and green technology using panel data.However, most of these studies have not considered the impact of financial developments and institutional quality in individual countries using time series data. This study explores how financial development-encompassing factors such as broad money, domestic credit to the private sector, foreign direct investment (FDI), and green technological innovation-affects carbon emissions inIndia, using data from 2001 to 2023.Utilizing sophisticated econometric techniques including the NARDL model and robustness checks through FMOLS and DOLS models, the research reveals that financial development can have a dual impact.On one hand, well-structured financial