The Role of Climate Finance in Achieving Cop26 Goals: Evidence from N-11 Countries
- Mai Pham Quynh , Faculty of Economics, Academy of Finance, Hanoi, Vietnam
- Mung Ho Van , Institute of Economics, Ho Chi Minh National Academy of Politics, Hanoi, Vietnam
- Thang Le-Dinh , Faculty of Mathematics, FPT University, Ho Chi Minh City, Vietnam
- Tran Thai Ha Nguyen , Faculty of Finance and Accounting, Saigon University, Ho Chi Minh City, Vietnam & Department of Business Administration, College of Management, Asia University, Taiwan
: Climate finance, research, and development, renewable energy, CO2 emissions, environmental quality, foreign development investment, N-11 countries. ,
Recent climate change has become a significant worry for international communities. These alterations' consequences are horrifying, and it is anticipated that they will worsen over time. CO2 emissions are one of the primary factors contributing to the degradation of the environment, among others. Recently, COP26, a UN climate change conference, was convened in the United Kingdom to bring together world leaders to discuss the dire climate situation and propose strategic solutions to reduce environmental concerns. Therefore, this study aims to investigate the impact of Climate financing on environmental quality. The study evaluated climate finance and its impact on CO2 emissions in N-11 nations using three indicators: renewable energy use, foreign direct investment inflows, and R&D expenditure. The information retrieved from WDI spans the years 1990 to 2019. The current study used CS-ARDL and a correlation matrix to determine the relationship between components. The results demonstrated a negative relationship between renewable energy use and R&D spending, and CO2 emissions. However, FDI inflows are found to boost carbon emissions. The current analysis provides credible criteria for the effectiveness of climate finance and concludes with a discussion of repercussions and future directions.