Performance of green finance: An evaluation of the OIC countries in the scope of 2030 Sustainable Development Goals

Kazak H., Rahman M. M., Akcan A. T., Cetintas H. B., Kocyigit N., KILIÇ C.

Energy Policy, cilt.207, 2025 (SCI-Expanded) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 207
  • Basım Tarihi: 2025
  • Doi Numarası: 10.1016/j.enpol.2025.114838
  • Dergi Adı: Energy Policy
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus, International Bibliography of Social Sciences, PASCAL, ABI/INFORM, Aerospace Database, Agricultural & Environmental Science Database, Business Source Elite, Business Source Premier, CAB Abstracts, Communication Abstracts, Compendex, EconLit, Environment Index, Greenfile, Index Islamicus, INSPEC, PAIS International, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Anahtar Kelimeler: Carbon ecological footprint, Fourier analysis, Green finance, OIC countries, Panel data, Sustainable development
  • Çanakkale Onsekiz Mart Üniversitesi Adresli: Evet

Özet

This study investigates the role of green finance (GF) in mitigating the carbon ecological footprint (CEF) in the member states of the Organization of Islamic Cooperation (OIC) during 2000–2022. Employing annual panel data and drawing on a Fourier function-based panel estimation framework, the study examines whether GF can sufficiently minimize environmental pressures and achieve the objectives of sustainable development. Empirical findings indicate that GF is statistically significant and negatively affects CEF, i.e., greater financial resources directed toward green investment help reduce environmental pressures. Furthermore, it is established that economic growth, merchandise exports, and private domestic credit are positively associated with an increase in CEF, suggesting a likely trade-off between economic development and sustainability. The results are robust across different model specifications and underscore the importance of incorporating GF instruments into national and regional policy plans. The paper provides major policy suggestions for OIC members, emphasizing that strengthening GF mechanisms and promoting innovative financial instruments will facilitate progress toward the 2030 Sustainable Development Goals while minimizing ecological risks.