Do green finance and energy counteract a sustainable environment in Vietnam? Quantile and frequency analysis

Abstract

Purpose

Green finance aims to promote sustainable financial activities, environmental conservation and ecological balance. This study examines how renewable energy consumption (REN), technological innovation (TEC) and green finance (GRF) influence CO2 emissions in Vietnam from 2000 to 2022.

Design/methodology/approach

We utilize a novel three-stage methodology including quantile-on-quantile regression, wavelet coherence and wavelet-quantile regression to explore the relationship in the structure of intercorrelation in terms of quantile, time and frequency.

Findings

The findings show that Vietnam will increase environmental quality for higher green development. Specifically, there is a negative influence of TEC, REN and GRF on CO2 emissions across different quantiles and timescales.

Practical implications

The study recommends policies that support green development and reduce carbon emissions, such as increasing the use of renewable energy and conducting well-planned research to achieve a carbon-free, sustainable environment.

Originality/value

This article looks into the effects of GRF, TEC and REN on CO2 emissions in Vietnam. Some studies argue that green development in underdeveloped nations is insufficient to reduce CO2 emissions, thereby limiting the sample to a few advanced economies. Adopting diverse methodologies demonstrates the varied and intricate nature of understanding CO2 drivers. Additionally, our work makes detailed policy implications for Vietnam to meet its net-zero emission target and achieve sustainable development by 2050.

Citation

Phuoc, T. and Hung, N.T. (2024), "Do green finance and energy counteract a sustainable environment in Vietnam? Quantile and frequency analysis", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-03-2024-0507