Environmental Sustainability and Climate Finance
Revisiting Ecological Modernization Theory in Context of Asian Economies
Bibliographic Data
| ID | 19235358 |
|---|---|
| Authors | Richa Sharma (0000-0001-5509-2078, School of Economics Shri Mata Vaishno Devi University Katra Jammu & Kashmir India, corresponding author), Kakali Majumdar (0000-0001-6996-7787, School of Economics Shri Mata Vaishno Devi University Katra Jammu & Kashmir India) |
| Year | 2026 |
| Publication date | 2026-04-21 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Sustainable Development (JOURNAL) |
| Journal identifiers | ISSN: 0968-0802 • E-ISSN: 1099-1719 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/sd.71089 |
| OpenAlex | W7155080899 |
| Language | EN |
| References cited | 66 |
Climate finance acts as an institutional enabler that directly promotes environmental sustainability. This nexus may get amplified with the adoption of eco‐friendly modern technologies. The present research aims to study the efficacy of climate finance towards environmental sustainability and to investigate the mediating role of renewable energy consumption in the functioning of climate finance in the Asian context. With the theoretical background of Environmental Kuznets Curve (EKC), the mediation model approach is employed. The use of a modernizing tool along with the growth and environmental factors allows the present research to revisit Ecological Modernization Theory (EMT). Panel data of 19 Asian countries from 2010 to 2021 are considered. Dynamic Generalized Method of Moments is used as the primary model followed by Fully Modified Ordinary Least Squares as a robustness check. The results revealed that both adaptation and mitigation finance directly and indirectly reduce ecological footprint by augmenting emission reduction sources. Renewable energy, being a modernizing tool, acts as a significant mediator to channelize the role of climate finance targeting sustainable development goals. The study confirmed an inverted U‐shaped EKC reflecting that initial growth increases environmental problems, but over time, financial investments, technological innovations, etc., lead to sustainable growth, collectively aligning with EMT. The novelty of this study lies in the simultaneous applicability of EKC and EMT that ensures the co‐existence of modernization and sustainable economic growth. The research offers valuable insights in executing environmental policies focusing on the efficient distribution of climate finance. This kind of pioneering work for Asian economies is a significant value addition in the existing literature
Climate Finance · Ecological footprint · Ecological modernization · Environmental degradation · Kuznets Curve · Modernization theory · Sustainability · Sustainable development · Business and Economic Development · Energy, Environment, Economic Growth · Sustainable Finance and Green Bonds
Statistical Inference in Instrumental Variables Regression with I(1) Processes
Environmental Quality and Development
Greenhouse gas emissions, energy consumption and economic growth
Towards industrial ecology
Dealing with endogeneity bias
Some Tests of Specification for Panel Data
Large Sample Properties of Generalized Method of Moments Estimators
Economic Growth and the Environment
Impact of Environmental Innovation Strategy on Green Competitiveness
Does Technological Innovation Promote Green Development? A Case Study of the Yangtze River Economic Belt in China
Does climate finance enhance mitigation ambitions of recipient countries
Technology, decoupling, and ecological crisis
Socioeconomic Determinants of Climate Stress in the Next‐11 Economies
The Impact of Work Overload on Pro‐Environmental Behavior at Work
Balancing profit and sustainability
Innovation Strategies for Ecological Sustainability
Turning Profit Into Sustainability
Achieving the SDGs Through Renewable Energy and Innovation
Balancing Growth and Ecological Sustainability
Digital Transformation and Sustainable Supply Chain Performance for Sustainable Development
Ecological footprints and appropriated carrying capacity
When means of implementation meet Ecological Modernization Theory
Ecological modernisation, social movements and renewable energy
Asymptotic Confidence Intervals for Indirect Effects in Structural Equation Models
| Highly cited | No |
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