Analyzing Impacts of Green Material Financial Accounting on Climate Risk: A Panel Vector Autoregressive and Dynamic Panel Threshold Model

Green accounting provides a framework for incorporating environmental factors into economic analysis, providing insights to guide resource management and climate risk mitigation. This research utilizes the Panel Vector Autoregressive (PVAR) and dynamic panel threshold models, using data from 149 countries spanning 2000-2022. The results show that green accounting responds positively to climate risk, whereas climate risk responds negatively to green accounting. In the long term, these dynamics are reversed. Furthermore, an irregular connection exists between green accounting and climate risk and the green accounting threshold is 417 million tons. Below the threshold, green accounting positively influences climate risk; above the threshold, its positive impact becomes more pronounced. Therefore, it is critically important to rigorously monitor and evaluate the outcomes of green accounting, as this provides a robust foundation for developing comprehensive and sustainable strategies aimed at addressing long-term environmental and climate challenges.