GREEN FINANCE AND ECONOMIC GROWTH IN THE POST COVID-19 WORLD. EVIDENCE FROM EU COUNTRIES
GREEN FINANCE AND ECONOMIC GROWTH IN THE POST COVID-19 WORLD. EVIDENCE FROM EU COUNTRIES

Author(s): Adina Dornean, Ada-Iuliana Popescu, Dumitru-Cristian Oanea
Subject(s): Law, Constitution, Jurisprudence, Public Finances, Socio-Economic Research
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: green finance; COVID-19; economic growth; environmental protection; sustainable development;
Summary/Abstract: The importance of green finance has been steadily growing over the last years and it became a necessity for sustainable development of our society. According to the literature, green finance simultaneously provides economic growth and environmental protection.In 2020, the COVID-19 crisis generated the need for a friendlier environmental development that put a greater emphasis on green finance as an economic instrument in order to achieve it. Considering the role of green finance in obtaining an inclusive, resilient and cleaner economic growth through environmental protection, the present paper empirically analyses the link between green finance and economic growth. For this purpose, we will use a multiple linear regression based on balanced panel data for the European Union (EU) countries. The results show that green finance has a positive impact on economic growth. Therefore, governments and policymakers should focus on financing green projects and even promote green fiscal policies, that can contribute to the global green recovery after the COVID-19 pandemic.

• Details
• Contents