Analysis of the Impact of Green Financial Facilities on Renewable Energy Consumption: The Role of Institutional, Financial, and Environmental Variables in Selected Countries
Abstract
This study examines the impact of green financial facilities on renewable energy consumption in selected countries during the period from 2010 to 2024. Using the dynamic panel data method and the Generalized Method of Moments (GMM) estimation model, the role of institutional, financial, and environmental variables in the development of clean energy has been analyzed. The results indicate that green financial facilities significantly and positively increase renewable energy consumption, thereby facilitating investment in low-carbon projects. In addition, the quality of environmental governance, as a key institutional factor, provides a favorable foundation for attracting green financing and fostering the sustainable development of renewable energy. The findings also reveal that greenhouse gas emissions act as a reactive driver; increasing pollution intensifies efforts to expand clean energy. Industrialization, as a structural variable, also contributes to the growth of renewable energy consumption by creating greater energy demand. This research emphasizes the importance of aligning financial, institutional, and environmental policies and suggests that to accelerate the transition to a green economy, targeted financial support and improved environmental governance should be prioritized by policymakers.