Green Finance and Environmental Quality in Emerging Market and Developing Economies

This study explored the effect of green finance on environmental quality in eleven (11) emerging economies between 2002 and 2022. The study employed the fixed and random effect estimation methods. The results showed that environmental quality in emerging economies can be increased by improved green finance. Government integrity and financial freedom enhance environmental quality. Furthermore, the results depicted that economic growth has a detrimental effect on environmental quality. In many emerging nations with slow economic development and an imminent recession, governments need to alter their growth strategies to incorporate medium- to long-term green growth to improve environmental quality.