Driving sustainable development in BRICS through green finance and economic growth: A quantile regression perspective

This study investigates the relationship between green finance and environmental sustainability, with particular attention towards how these dynamics foster green economic growth within BRICS economies. Using a balanced panel dataset spanning 25 years, the research employs the Method of Moments Quantile Regression (MMQR), in order to obtain robust estimates. The results indicate that both green finance and green economic growth significantly enhance environmental sustainability by reducing carbon dioxide emissions and eventually mitigating climate change risks in the BRICS specific countries. Furthermore, the findings reveal that green finance stimulates green economic growth, while green economic growth positively moderates the relationship between green finance and environmental sustainability. Based on these results, the study puts forth a recommendation that BRICS nations strengthen the role of the banking sector and other financial institutions when it comes to advancing green financial initiatives. Greater emphasis on green finance and environmentally oriented and driven economic projects is essential for mitigating climate risks and achieving sustainable development.