Measuring The Combining Effects of Technological Innovation and Green Finance on Economic Efficiency: Quantile Analysis Across Emerging Economies

This research examines the combined effect of technological innovation and green finance on economic performance in 73 developing economies from 2012 to 2021 by using econometric estimation such as quantile analysis. The research demonstrates that green financing substantially enhances financial effectiveness, as quantile-based evaluation reveals, especially in the mid- to upper quantiles, with a threshold of 0.70. Nonetheless, the benefits diminish above this threshold, suggesting a decrease in receptivity at higher income tiers. This indicates that the benefits of green financing are unequally distributed across varying degrees of economic success. The results urge developing economies to augment expenditure in sustainable green projects rather than conventional, unsustainable initiatives. Long-term growth and resiliency rely on the adaptation of economic strategies that promote sustainable investments. This encompasses the incorporation of green economics into both monetary and non-banking portfolios. Advocating for eco-conscious economic structures may foster stable, inclusive, and ecologically viable growth. This outcome further corroborates the conclusions of the long-term economic research over the majority of quantiles, except for some higher quantiles (0.8, 0.9, and 0.95); the majority of percentiles for environmental financing and mitigating financing exhibit favorable correlations with industry values addition. Nonetheless, a rise in funding adaptability diminishes the economic value contributed across all quantiles.