Panel data analysis demonstrates that green technology mitigates the ecological pressure of financial growth in European nations, highlighting the need to fund sustainable innovations.
Financial enrichment can be a double-edged sword, yielding both beneficial and adverse ecological effects. Green energy and investment in green technology may be essential in accomplishing ecological survival and transforming the disadvantageous ecological impacts of financial enrichment into advantageous ones. This study offers novel perspective by delving into the financial enrichment’s impact on ecological survival via the means of green technology. In this vein, the annual panel data are collected for 21 European Union (EU) members from 1995 to 2020. Empirical outcomes revealed that green energy and green technology encourage ecological survival. In contrast, utilization of resources from nature, population, and financial enrichment are exacerbating the ecological pressure. As per the moderating effects, this study reveals that financial enrichment encourages ecological survival via the channel of green technology. These findings suggest that European Union members should strengthen support for green technologies, while allocating financial activity toward eco-friendly economic activities. Financial institutions should also exert more stringent evaluation of environmental impact so that loan growth is better harmonized with the Sustainable Development Goals (SDGs).
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Šatrović et al. (2026) studied this question.
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