Resources Policy 74 (2021) 102402

Contents lists available at ScienceDirect

Resources Policy
journal homepage: www.elsevier.com/locate/resourpol

Renewable energy resources investment and green finance: Evidence

from China
Menghan Li a, Nawzad Majeed Hamawandy b, Fazle Wahid c, Husam Rjoub d, Zongke Bao e, *
a
College of Economics, Shenzhen University, Shenzhen, Guangdong, 518060, China
b
Department of Business Administration, Administration Technical College, Erbil Polytechnic University FPTP, Universiti Tun Hussein Onn, Malaysia
c
Department of Economics, Islamia College Peshawar, Pakistan
d
Department of Accounting and Finance, Faculty of Economics and Administrative Sciences, Cyprus International University, Mersin 10, Haspolat, 99040, Turkey
e
School of Accounting, Zhejiang University of Finance & Economics, China

A R T I C L E I N F O A B S T R A C T

Keywords: The Covid-19 pandemic has caused a global economic recession which also shrunk natural resources prices due
Renewable energy investment to reduction of the energy demand. In this concern, renewable energy projects also lose their competitiveness,
Green finance which could hurdle the achievement of sustainable development goals. Current study investigated the causal link
Renewable electricity
between renewable energy investment (IRE) and green finance (GFi), economic growth (GDP), renewable energy
Wavelet power spectrum
electricity output (REEO) and energy investment with private participation (EIPP) for China, covering the time
Wavelet coherence
series data over the 1990–2020 period. Using the wavelet power spectrum approach, this study reveals that IRE,
REEO and GFi are more volatile than the GDP and EIPP across the selected time period. However, the wavelet
coherence approach reveals that there is a bidirectional significant causal association between IRE and REEO,
while the unidirectional causal association is found running from GDP to IRE and IRE to GFi. The causal rela­
tionship between these variables are found different in short and long-run with different time spanes. Besides, the
EIPP did not showed any causal link to the IRE. Based on the empirical findings, this study recommends that
policies must be design that could volatility in IRE, GFi REEO, and also enhance investment in these sectors to
achieve sustainable economic growth, environment, and renewable energy production.

1. Introduction
The twenty-first century begins with many disastrous accidents that
adversely affect economies across the globe. From the 2003–08 energy
price shocks to the 2007-09 global financial crises, and now the outbreak
of contagious disease Covid-19 pandemic which not only have taken
many lives and disrupted businesses, but also challenged the renewable
energy infrastructure (Hoang et al., 2021a). Generally, the heat energy
and electricity carriers are typically generated by the traditional
non-renewable fossil fuel energy sources: still, these carriers have lower
efficiency because of the heat loss (Tahir et al., 2019). Whereas the
higher variable renewable energy sources share upset the flexibility and
reliability of the power system. However, the recent pandemic and
recession in the global competitive market have drastically reduced the
green projects investments globally, which could enhance the threat to
climate related goals (Taghizadeh-Hesary et al., 2021). In this regard,
the financial system of the country holds a deterministic importance that
also accounts for the green financial investments which helps achieve
sustainable economic and environmental growth. A sustainable finan­
cial system is that generates and manages those financial assets in a way
that benefits people, the environment, and the whole economy, rather
than simply the privileged ones. However, concerning green finance, the
term refers to those financial instruments that include climate finance
but not only limited to that: it also includes other environmental ob­
jectives such as sustainable promotion, and environmentally friendly
financial system that involves green loan, green bonds, and green
mortgages (Höhne et al., 2012; Katona, 2020; Flammer, 2020).
The lack of funding is among the most serious obstacles to the growth
of renewable energy (Sachs et al., 2019). As of 2018, the bulk of global
energy investment was still going to carbon-emitting energy sources,
such as coal and oil. For example, renewable energy received 39 percent
of investments in power generation, while it only received 19 percent of

* Corresponding author..
E-mail addresses: limenghan1990@hotmail.com (M. Li), nawzad.hassan@epu.edu.iq (N.M. Hamawandy), fazlewahid@icp.edu.pk (F. Wahid), Hrjoub@ciu.edu.tr
(H. Rjoub), 154486901@163.com, 294244417@qq.com (Z. Bao).

https://doi.org/10.1016/j.resourpol.2021.102402
Received 18 July 2021; Received in revised form 20 September 2021; Accepted 4 October 2021
Available online 21 October 2021
0301-4207/© 2021 Elsevier Ltd. All rights reserved.
M. Li et al.
overall energy sector investments (Paris: International Energy Agency,
2019). In contrast, fossil fuels got roughly 60% of overall investments
that same year (Paris: International Energy Agency, 2019), while the
rest of the investments are going to nuclear, biofuels, or battery storage,
all of which are nevertheless sources of greenhouse gas (GHG) emissions
to a lesser level.
The continuous investment in renewable energy, energy efficiency,
and other green initiatives decreased dramatically in 2020–21 as a result
of the COVID-19 outbreak and the worldwide economic crisis. The
COVID-19 outbreak, as well as economic downturns, caused a signifi­
cant drop in oil and gas prices. Lower fossil fuel prices are detrimental to
the development of renewable energy projects, such as solar, wind, and
other renewable energy sources are less economical as compared to
power sources. This decreases the interest of the investors in renewable
technologies, putting the Paris Climate Agreement and numerous SDGs
in risk.
Green finances or green infrastructure funding is still a burning issue.
These projects, in general, need substantial borrowings due to their
capital-intensive nature (Peimani, 2018). Furthermore, green initiatives
are frequently linked with “higher risk and lower returns throughout the
early stages of research and development” (Noh, 2019). Access to money
for green initiatives is particularly difficult in Asia, where the financial
system is controlled by banks, and banks are thus the primary funding
sources (Sachs et al., 2019). Similarly, in China particularly the venture
capitalists are rare, however they are more inclined to support green
initiatives, whereas banks usually see green projects as hazardous (Noh,
2019). Concerning the case study area, studies identified that China
declared its incentive packages to combat the Covid-19 crises: however,
these incentives does not accelerate the energy transition, or any other
Chinese new green deal have been identified, but investment in the fossil
fuel over the clean or renewable energy have been pushed (Gosens and
Jotzo, 2020).
Although there is extensive literature available that empirically
analyzed investments in renewable energy while assessing the role of
various economic, financial and environmental indicators. However,
green finance is the area of interest for the policy-makers that targeted
sustainable economic growth and environment, which is still remained
unexplored as compared to the extensively explored area of carbon di­
oxide (CO2) and climate change in the recent decades. Nonetheless,
green finance and other variables have significant association with
economic growth and environmental. Still, there are few questions
explored in this study, that needs empirical investigation. Firstly,
whether green finance increases renewable energy investment or not?
Investment in financial vehicles connected to renewables and other
green industries is referred to as green finance. The green finance market
refers to assets, securities, and funds connected to renewable energy and
other green ventures. In recent years, a strong green finance market has
come to be seen as critical to the development of new renewable tech­
nology initiatives (Shahzad et al., 2022). Secondly, whether economic
growth contributes to renewable energy investment or not? Generally,
studies have found positive association between economic growth and
renewable energy investments (He et al., 2019; Zhou et al., 2020a,b; Li
et al., 2021). An increase in the economic growth leads the country to­
wards structural transformation from non renewable energy sources to
renewable energy sources. Thus, higher economic growth enhances in­
vestments in renewable energy projects (Khan et al., 2020; Shahzad
et al., 2021). Thirdly, whether renewable electricity output and private
participation in energy investment holds any relation to renewable en­
ergy investment? As priorly mentioned, economic growth and green
finance enhances investment in renewable energy. However, as a factor
of total renewable energy, renewable electricity output could also be
linked to the renewable energy investment by the following conditions:
(i) higher investment in renewable energy enhance renewable electricity
output. (ii) Higher economic growth leads to transformation of energy
sector from non-renewables to renewables, which could also enhance
private investors participation.
2
Resources Policy 74 (2021) 102402
Following the said questions, current study aimed to investigate in­
vestment in the renewable energy (IRE) with the other economic,
financial, and energy related indicators. Firstly, this study explores the
causal association between the IRE and green finance (GFi). As the green
finance is thought to be a regulator of the environmental sustainability
that promote renewable energy, therefore, it is important to analyze the
causal role of GFi in the IRE. Secondly, current study analyzes the causal
linkage of renewable energy electricity output (REEO) with that of IRE.
Renewable electricity is one of the factors that represents renewable
energy, therefore, the maximization of the renewable electricity could
be essential for the renewable energy investments. Thirdly, this study
investigates the causal linkage of IRE and economic growth (GDP). As
the literature mentioned that the higher the GDP or economic perfor­
mance, the higher would be the chances of transition towards renewable
energy sources adaptation. Also, China is an emerging economy and
holds the position of 2nd largest economy and the first on the list of
energy imported, therefore the role of GDP cannot be ignored in this
investigation. Finally, the renewable energy required heavy in­
vestments, whereas most of the investors are still investing in the fossil
fuel energy sector for better returns. However, countries across the globe
and specifically China are now focusing on the sustainable development,
thus the investors could play a crucial role in determining the renewable
energy investments. Thus, the final objective of the study is to analyze
the causal association between investment in energy with private in­
vestors (IERR) and IRE. To achieve these objectives, current study
employed the wavelet power spectrum and the wavelet coherence in
order to achieve both the short run and the long run causal association
among the variables of interest.
This study is novel and its empirical findings contribute to the
existing literature in threefold: firstly, it is among the pioneering studies
that investigates renewable energy investments in China while consid­
ering economic growth, renewable electricity output, and energy in­
vestment with private participation. Although many studies have
provided empirical evidence regarding the specific influence of these
variables on renewable energy investments, still the literature lacks the
causal relationship between them, particularly in the case of China.
Secondly, this study considers the role of green finance in renewable
energy investments. Nonetheless, researchers and policy-makers have
provided the linkage of green finance and environment. However, very
limited attention has been paid to the causal association of green finance
and renewable energy investment. Finally, the causal association of all
these variables have been tested with the renewable energy investments
by adopting the most updated dataset, which consider the prior Covid-
19 pandemic era and the present era of Covid-19 pandemic outbreak,
that affect each and every sector of China. Using the novel method of
wavelet power spectrum and wavelet coherence, these empirical find­
ings are important for the policy-makers, governors, and researchers by
providing relevant and innovative policy insights. Specifically, volatility
in these variables could play either positive or negative role in the
renewable energy investment. However, the empirical findings of this
study helps encourage the efficient steps taken towards investment in
renewable energy enhancement. Moreover, the empirical findings of
causal association among these variables could illustrate whether green
finance, economic growth, renewable electricity output, and energy
investment with private participation should be improved to achieve the
desired level of renewable energy investment or not, which would lead
to a win-win situation from both economic and environmental
perspectives.
The rest of the study is organized as following: Section-2 provides
review of the relevant literature: Section-3 provides the theoretical set
up and relevant methodological representation of the models used in the
study: Section-4 displays the obtained results and their discussion:
Finally, Section-5 unveils the concluding remarks and policy implica­
tions based on the empirical results.
M. Li et al.
2. Literature review
Concerning green finance, the literature before the Covid-19
pandemic is extensive, while in the present Covid-19 period, the liter­
ature is observed as scant. There are few studies including Wang et al.
(2020), Taghizadeh-Hesary et al. (2021), Štreimikienė and Kaftan
(2021), Redshaw (2016), Nawaz et al. (2021), Shipalana (2020), and
Kong et al. (2021) which studied green finance and investment with
different other economic, environmental and energy related variables.
Among other studies, Wang et al. (2020) studied the role of green
investment while investigating China’s sustainable growth and pro­
duction based CO2 emissions throughout the 1998–2017. The study used
autoregressive distributed lags (ARDL) cointegration approach and
revealed that production based CO2 emissions and its determinants are
cointegrated in the long-run. Besides, the results indicates that green
investment and renewable energy use significantly reduces production
based CO2 emissions, while trade openness increase it. Hence, both of
the latter factors are essential for Chinese sustainable growth. Although
green investment is positively related to sustainable growth, but the
Covid-19 appears as a challenge to each sector globally. In this concern,
Taghizadeh-Hesary et al. (2021) investigated green bonds markets with
the aim to examine their facilitative role in the green finance in the post
Covid-19 era. Analyzing the Asia and Pacific regions, the study used
pooled OLS, and random effect generalized least square estimators. The
empirical findings asserted that the green bonds showed higher return
alongside the higher risk and heterogeneity. The study also argued that
60% of the green bond market led by the banking sector. However, the
green bonds issued by the banking sector showed lower return relative
to the average return.
In support of the previous study, Štreimikienė and Kaftan (2021)
argued that the banking sector showed smaller absorption capacity to
the unexpected risks. This factor leads some banks in Covid-19 to
collapse and some (non-banks) financial institutions and markets need
immediate support. Hence, the study recommended that to achieve
sustainable environmental goals, there is a need for healthy environ­
mental policies that consider carbon free and environmentally friendly
approaches. However, green finance, including green leans, green
bonds, and green mortgages could be effective policies to achieve
environmental sustainability. Environmental sustainability is also
linked with the sustainable development goals (SDGs) and Paris agree­
ment on climate change. Regarding, Yoshino et al. (2021) studied the
optimal portfolio selection for SDGs in the Covid-19 pandemic. The
study theoretically constructed the model for optimal allocation of assets
in SDGs. The findings asserted that the investors’ present allocation
concerning SDGs depends upon various consulting companies results in
the investment portfolio distortion. However, the allocation of the
desired portfolio could be achieved only by taxing the environmental
pollutants and wastes.
The study of Redshaw (2016) considered environmental issues of
energy recycling, CO2 emissions and waste recycling and argued that
planning for green production and carbon tax could be efficient to
overcome these environmental issues. In this concern, Tahir et al. (2019)
investigated the energy system of China in 2020 and revealed that the
inclusion of the latest technologies including energy storage, heat
pumps, heat and power, and demand response significantly increases
energy efficiency, and reduces fuel consumption and annual cost. Thus,
investment in green projects substantially reduces environmental haz­
ards and increases variable renewable energy share. However, the sit­
uation for every economic activity change after the emergence of
Covid-19. In this regard, Hoang et al. (2021b) investigated challenges,
opportunities, and impact of the Covid-19 epidemic on the strategies
regarding sustainable energy in both the current and future scenarios.
The authors argued that in order to address the Covid-19 effects on
development strategies of renewable energy, identification of the pri­
orities concerning short-run policies is required. Also, both the mid and
the long-run action strategies must be planned to achieve renewable
3
Resources Policy 74 (2021) 102402
energy targets efficiently and in the more sustainable manner.
Concerning the green finance and climate change mitigation nexus,
Nawaz et al. (2021) investigated Next-11 and the BRICS economies over
the 2005–2019 period and used difference in differences (DID) method.
The findings of the study asserted that consumption of renewable energy
sources, population, carbon emission, inflation, foreign direct invest­
ment (FDI), technical cooperation grant, research and development
(R&D) and investment with the private partnership significantly pro­
motes green financing and climate change mitigation in the regions.
Additionally, the study of Barbier and Burgess (2020) investigated sus­
tainability and development after the recent pandemic Covid-19. The
study argued that the progress towards SDGs were lacking before the
pandemic, while after the pandemic the finances may be less for these
SDGs attainment. However, the study acclaims that the substitution of
the fossil fuel subsidy to support renewable energy distribution and
energy investment, and the carbon tax that funds the climate solutions
could better contribute to the SDGs attainment in the Covid-19
pandemic period. In addition to the latter study, Shipalana (2020) in­
vestigates developing economies concerning green finance mechanism
while exploring the best practices and channels for the green economic
recovery and promoting sustainable and inclusive investments.
Concerning the global clean energy shift progress in the COVID-19
pandemic, Hoang et al. (2021a) also argued that the recent contagious
pandemic results in the sharp decline of energy demand, that reduces the
prices of energy, which also slow down the progress in the renewable
energy projects distribution. However, the authors argued that the op­
portunity here is to make the renewable energy as the case for clean
energy investment, particularly in the electricity sector. The authors also
describe the specific influence of Covid-19 on the global energy market
and discussed strategies concerning sustainable energy.
The study of Kong et al. (2021) provides evidence from the green
finance that investing in the urban developmental projects such as high
speed railway positively and significantly contributes to the green
finance and green productivity. However, the positive influence of these
investments firstly increases and then decrease gradually.
Beside the prior literature that consider Covid-19, there are studies
that only considered green finance, such as the study of Zhang et al.
(2021) examined the public spending and green economic growth in the
BRI region while focusing the green finance’s role from 2008 to 2018.
Using the GMM estimations method, the results of the study unveil that
public spending on human resources and green energy technology R&D
accelerates the green and sustainable economy. However, the results for
countries are heterogenous as per their high per capita GDP. For the case
of China, Zhou et al. (2020a,b) examined the influence of green finance
on environmental quality and economic development on provincial data
of China throughout 2010–2017. The results examined asserted that
green finance on environmental quality is though positive but depends
upon the economic development of the region. Hence, green finance
leads to win-win situation in both environmental quality and economic
development. In case of G20 economies, Berensmann et al. (2017)
argued that a significant amount of the private investment is required
that align financial system with sustainable development. However, the
authors illustrates that the G20 must standardized green finance prac­
tices, support development of the markets for green investment, and
increase the transparency of information in order to increase green in­
vestment in the region.
The priorly mentioned literature has been extensively analyzed,
however no such study has been found that considered green finance,
economic performance or growth, renewable electricity, and energy
investment with private participation combinedly in the Covid-19
pandemic period for China. Therefore, this gap must be filled as
Covid-19 is the rising issue globally. Table 1 reports the summary of
recent literature on this subject
M. Li et al. Resources Policy 74 (2021) 102402

Table 1 Table 1 (continued )

Summary of literature review. Author(s) (Year) Study Area Methodology Findings
Author(s) (Year) Study Area Methodology Findings
and transparency of
Wang et al. (2020) China ARDL Green finance and information increases
renewable energy green investment.
promote sustainable
growth.
Taghizadeh-Hesary Asia and Pooled OLS, RE- Green bonds deliver 3. Methodology and data
et al. (2021) Pacific GLS higher return even in
regions the higher risk
3.1. Theoretical framework and model specification
(Covid-19).
Štreimikienė and – Econometric Green finance could
Kaftan (2021) techniques be effective tool for Based on the literature and the study objectives, we observed that the
environmental recent Covid-19 pandemic disturbed most of the global economic and
sustainability. financial activities and similarly in China that faced this contagious
Yoshino et al. (2021) OECD Portfolio utility Taxation on pollution
function reduces
disease first and affected the most. Also, China is the leading energy
environmental importer and CO2 emitting economy of the world that focuses on the
hazards and leads to environmental sustainability. Therefore, it is important to investigate
achieve SDGs. the investment in renewable energy sector of China. Hence, this study
Redshaw (2016) Theoretical Green production and
–
uses a total of five variables. Where investment in renewable energy
representation carbon tax leads to
environmental (IRE) is the main variable of focus, while green finance (GFi), economic
sustainability. growth (GDP), renewable electricity output (REEO) and investment in
Tahir et al. (2019) China Input-Output Investments in green energy with private participation (IEPP) are taken as exogenous vari­
Model projects reduces ables. Firstly, current study has taken GFi as the function of IRE, which is
environmental
degradation and
generally presented as following in the Model-1:
increases variable Model-1
renewable energy
share. IRE = f (GFi)
Hoang et al. (2021b) EU countries Theoretical Both mid and long-
The GFi could be an important factor for IRE because most of the
framework run policies are
crucial to achieve renewable energy projects are currently financed via green financing
renewable energy projects such as Solar Project Financing 101.1 Investments in financial
sustainability in vehicles is associated to renewable energy and other green industries,
Covid-19. which is termed as green finance. Currently, most of the countries have
Nawaz et al. (2021) Next-11 and Difference-in- Various economic
the BRICS differences and non-economic
paid attention to the making of strong green finance market, which is
model variables promote assumed to have economic, developmental as well as renewable energy
green finance. related technological innovation (Shahzad et al., 2022; Guo et al.,
Barbier and Burgess Developing Theoretical Covid-19 affect the 2021). As per Vestas/Gallup survey in 2011, the share of 90% of the total
(2020) economies framework finances for SDGs
sample suggested that renewable energy mix should be increase, while
attainment, while
carbon tax could play the 50% of total sample size were found willing to pay additional price
a crucial role in SDGs regarding clean energy.2 Beside the consumers, the governments also
attainment. tends to increase renewable energy production which leads to win-win
Shipalana (2020) African Policy brief Channels and situation regarding economic growth and environmental sustainability
developing practices of green
countries economic recovery
(Rafique et al., 2021; Fatima et al., 2020). Hence, it could be assumed
promote sustainable that there is a positive association between green finance and renewable
investments. energy investment. Additionally, economic performance is could also
Hoang et al. (2021a) Review Review paper Covid-19 sharply influence investments related to renewable energy (Song et al., 2021).
paper reduces energy
In order to achieve a carbon neutral economy, a transition from the
demand and progress
in renewable energy. traditional non-renewable energy sources towards renewable energy
Kong et al. (2021) China Difference-in- Investment in urban sources is essential. Hence, investment in the renewable energy sources
differences developmental for transition tackles environmental pollution issues such as reduction of
model projects promotes CO2 and GHG emissions and also contribute to economic growth
green finance and
green productivity
(Rafique et al., 2021; Sharma et al., 2021; Guo et al., 2021; Bashir et al.,
Zhang et al. (2021) BRI GMM Public spending on 2020; Ghazouani et al., 2020). However, a complete transition toward
Countries human resources and renewables required higher transition cost which adversely affect eco­
green energy nomic performance of the economy (Cui et al., 2019, 2020; Song et al.,
technology R&D
2020). Still, economies with the higher GDP growth could significantly
accelerates green and
sustainable growth. promote higher investment in the renewable energy sector. Following
Zhou et al. (2020) 30 Chinese Global principal Green finance the studies of He et al. (2019); Dogan et al. (2020) and Le et al. (2021),
provinces component promote this study also assumes that there is a positive association between
analysis, EKC environmental economic growth and renewable energy investment. Generally, the IRE
sustainability but
depends upon
and GDP model could be specified that GDP is the function of IRE, as
economic conditions.
Berensmann et al. G20 Policy brief Standardized green
(2017) Economies finance practices,
1
development of green For details, see: https://www.trinasolar.com/us/resources/blog/solar-proj
investment markets, ect-financing-101-0.
2
For details, visit: https://www.evwind.es/2011/06/29/global-consumer-w
ind-energy-study-consumers-want-more-renewable-energy/12193.

4
M. Li et al. Resources Policy 74 (2021) 102402

following in the Model-2: Table 2

Model-2 Variables’ specification and data sources.
Variable Specification Source(s)
IRE = f (GDP)
IRE IRE is the form of environmentally https://www.irena.org/statisti
Beside the GFi and GDP, the IRE could also be linked with the REEO friendly investment that focuses on cs
and IEPP. As the major source of the renewable energy is renewable renewable energy resources such as
electricity, therefore it is important to examine the link or association solar, wind, biofuels, tidal power
among investment in the projects related to renewable energy and the and hydropower, and also the
technology and infrastructure that
output of renewable electricity. However, concerning the theoretical support these sources and measured
association between these two, there are empirical evidence which in the current US dollars.
support the stance that there is a bidirectional causal association be­ GFi Any organized financial activity http://www.epschinadata.
tween renewable electricity output and economic growth (Azam et al., developed to achieve a better com/index.html?flag
environmental outcome is referred
2021). However, economic growth further encourages investment in
to as GFI.
renewable energy. Hence, it could be assumed that there is a positive GDP The entire monetary or market https://databank.worldbank.
association between renewable electricity output and investment in worth of all final products and org/source/world-develo
renewable energy. The renewable electricity is the variable of greater services produced inside a country’s pment-indicators#advancedDo
concern because it covers all the renewable electricity output in the boundaries is referred to as GDP, wnloadOptions
and measured as constant US$ 2010.
residential and industrial sectors of the country. Generally, the model REEO REEO, also known as clean energy, https://databank.worldbank.
could be constructed as the REEO is the function of IRE, as shown in the is derived from renewable natural org/source/world-develo
following Model-3. resources or processes that are pment-indicators#advancedDo
Model-3 continuously renewed, and wnloadOptions
measured as % of total electricity
IRE = f (REEO) output.
IEPP IEPP relates to commitment to https://databank.worldbank.
Similarly, the participation of private investors in the energy sectors energy infrastructure projects org/source/world-develo
could also be associated with the IRE. A country with the rapid industrial (generation, transmission, and pment-indicators#advancedDo
growth would higher share of the private investors in the energy sectors. distribution of electricity and wnloadOptions
natural gas) which have attained
However, there are two possibilities regarding the private investors financial close and benefit the public
behavior. Firstly, either the investors after the transition from non- directly or indirectly, and measured
renewable energy sources to renewable energy sources in economy, in the current US dollars.
the participation of the private investors could shift to renewable energy
investment to achieve sustainable economy and environment. Secondly,
to examine the nexus among IRE and other study variable as mentioned
they may postponed investment in the energy shares due to future profit
above. Hence, this study adopts the wavelet (ψ ) approach based on
and revenue concerns. Hence, for a country like China, both of these
wavelet’s Morlet family. Where the equation could be rendered as
conditions are possible. The general model of both these variables could
following Eq. (1):
be constructed that the IEEP is the function of IRE as shown in the
following Model-4: t2
(1)
1 iω0 t −
ψ (t) = π− 4 e− e 2
Model-4
IRE = f (IEPP) Where p(t), t = 1, 2, 3, … …, T.
Two wavelet components, notably location (k) and frequency (f), are
Data for all the variables under-consideration are taken from various crucial in this case. The main purpose of the component k is to highlight
sources, such as the IRE data is retrieved from IRENA (2021), and the the specific position in time using a wavelet fluctuation. While f, on the
data for GFi is retrieved from Chinese Economy Prediction System (EPS, other hand, is in charge of the frequency fluctuations. Where, ψ k, f is
2021). Additionally, the data for GDP, REEO and IEPP are obtained from obtained by transforming Eq. (1). The conversion formula is as follows
the world development indicators (World Bank, 2021). Data for the said Eq. (2):
variable are obtained from these sources covers 31 years’ time-period ( )
from 1990 to 2020. The variables’ specification and data sources are (t − k)
ψ k, f (t) = h− 1/2 ψ , k, f ∈ R, f ∕
=0 (2)
provided in Table 2. f
Moreover, the pre-mentioned wavelet parameters, i.e., k and f may
generate the continuous wavelet form ψ as follows, which presents the
3.2. Wavelet power spectrum and wavelet coherence
time-series dataset p(t), as mentioned in Eq. (3) below:
( )
Wavelet analysis is a time scale analysis approach that splits the data ∫∞
t− k
into the components of frequency and estimate each component in the Wp (k, f ) = p(t)f − 1/2 ψ dt, (3)
f
scale proportion resolution. Hence, to examine to the time-frequency − ∞

dependence of the IRE and other exogeneous variables including GFi, The above Eq. (3) already considered the time-series p(t), while the
GDP, REEO and IEPP in China during the Covid-19 pandemic period, the corresponding coefficient ψ is presented in Eq. (4) below:
wavelet coherence method, firstly proposed by Goupillaud et al. (1984), ⎡ ⎤
has been employed. More recently, Yan et al. (2021) and Fareed et al. 1
∫∞ ∫∞
⃒ ⃒2
(2020) have also employed Wavelet Power spectrum and wavelet p(t) = ⎣ ⃒Wp (a, b)⃒ da⎦ db (4)
Cψ b2
coherence for their research on COVID-19-tourism and 0 − ∞

COVID-19-environment. This approach is unique because of the time It is essential to use the wavelet power spectrum (WPS) as it provides
domain and frequency domain causality combinations. Thus, the said additional information and amplitude of the time variables, which could
novelty of the wavelet coherence approach allows us to identify both the be written as follows Eq. (5):
long-run and the short run causal relationship between the IRE and the
⃒ ⃒2
rest of the variables. Particularly, a multi-scale decomposition approach WPSp (k, f ) = ⃒Wp (k, f )⃒ (5)
creates a natural framework that exhibit frequency dependent behavior

5
M. Li et al. Resources Policy 74 (2021) 102402

In addition, current study employed the wavelet coherence tech­ 4. Results and discussion
niques, which is based on the coherence approach’s inherent benefits
over traditional correlations. In the joint time-frequency oriented cau­ 4.1. Descriptive statistics
salities, the method of wavelet coherence delivers the greater repre­
sentation of both time-series and time domain, that is, q(t) and p(t), In empirical investigation, descriptive statistics helps summarize the
respectively. Furthermore, the conversion of the cross wavelet time- data for variable(s) under consideration. Current study used the data
series could be provided in the following form as presented in Eq. (6) general numeric form to estimate mean, median, range, standard devi­
ation, skewness and Kurtosis of the data. Additionally, the Jarque-Bera
Wpq (k, f ) = Wp (k, f )Wq (k, f ) (6) normality of the data has also been checked. The estimated outcomes
of these statical approaches is provided in Table 2. Specifically, the mean
Where the above-mentioned Eq. (6) consists of both Wp(k,f) and Wq(k,f),
value for IRE, GFi, GDP, REEO, and IEPP is accounted for 3.59E+10,
which indicates the transformed cross wavelet for p(t) and q(t),
4132260, 4.81E+12, 18.86842, and 2.14E+09, respectively. Whereas
respectively, also mentioned in the study of Torrence and Compo
the median values holds a smaller difference than that of mean value.
(1998). Thus, the squared version of the wavelet coherence could be
However, the range (minimum and maximum) values holds significant
constructed as following Torrence and Compo (1998) is presented in Eq.
change in values, which indicates the higher value of standard deviation
(7):
of each observation from the mean value. In this regard, the overall
⃒ ( )⃒2 standard deviation for these earlier mentioned variables is reported as
⃒ 1 ⃒
⃒C Wpq (k, f ) ⃒
⃒ f ⃒ 3.40E+10, 2688918, 3.53E+12, 2.584380, and 1.39E+09, respectively.
2
R (k, f ) = ( ⃒ ⃒
) (
⃒ ⃒2
) (7) Although, the skewness and Kurtosis values have been provided in the
2
C 1f ⃒Wp (k, f )⃒ C 1f ⃒Wq (k, f )⃒ table. However, the Jarque-Bera normality test consider both the
skewness and excess Kurtosis at the same time and reveals the normality
Where C in the aforementioned Eq (7) indicates the time and smoothing of the data. The said test holds the null hypothesis of skewness and ecess
process over the time having positive values ranging from 0 ≤ R2(k,f) ≤ Kurtossi being zero. Whereas the probability values for IRE is found
1. However, it must be noted that if the value of R2(k,f) gets closer to the statistically significant ar 10% level. This reveals that the variable IRE is
unit (1), this represents that a correlation exists at a particular scale not normally distributed. However, GFi, GDP, REEO, and IEPP are
between the time-series, which would be surrounded by a thick black normally distributed as the insignificant probability values of Jarque-
line and described by the red color. Whereas, the R2(k,f) values if gets Bera suggested. Table 3 reports the descriptive statistics.
closer to zero (0), this reveals that there is no correlation scenario among
the time series variables, and displayed by the blue color. 4.2. Empirical findings
In the values computation, there is no apparent distinction among
the positive and negative correlation while estimating the R2(k,f) values. Many time series in economics and the environment have statistics
Hence, the concept of Torrence and Compo’s (1998) could be used here that are non-stationary. Whereas the series might comprise dominating
as a handy tool because it assists in the wavelet coherence variance periodic signals, the amplitude and frequency of these signals might
detection via signaling the deferrals in the fluctuations of two change with time. The wavelet coherence technique is used to investi­
time-series variables as shown by Pal and Mitra (2017). Hence, the gate the co-movement between the IRE and other variables such as GFi,
differentiation on the wavelet coherence phase is well presented in the GDP, REEO and IEPP. Because the wavelet coherence technique in­
following Eq. (8): tegrates time and frequency domain-based causation techniques, it al­
( { ( −1
L C f Wpq (k, f )
)} ) lows the current study to discover both the short-run and long-run link
φpq (k, f ) = tan− 1 { ( )} (8) among renewable energy related investments and renewable energy
O C f − 1 Wpq (k, f )
related green finance and economic performance in the Covid-19
Where L and O in the priorly mentioned equation represents the lag pandemic. It is feasible to evaluate the degree of co-movement across
operators that signifies the imaginary and the real part operators, various frequencies throughout time utilizing wavelet analysis. These
respectively. are the distinguishing characteristics of the wavelet method above other
Finally, regarding the interpretation of the wavelet coherence of the previously proposed causality methodologies. Nonetheless, the major
graphical presentation, the horizontal axis presents the time dimension goal of this research is to use a wavelet technique to create time-
and the vertical axis presents the frequency. Additionally, the higher frequency based models to fill a gap in the literature. Both the wavelet
scale represents the lower frequency. In the time-frequency space sec­ power spectrum and the wavelet coherence with their specific charac­
tions, the wavelet coherence approach can be used to identify the co- teristics for the IRE, and the variables under consideration are discussed
variance between the two time-series. Besides, the color approaching here in this section.
to hard reindicates that the relationship between the series is strong,
while the color approaching to blue indicates weaker or no relationship 4.2.1. Results of the wavelet power spectrum
between the series. With no interrelation between the sets, the colder With reference to Fig. 1, 2, 3, 4 and 5, the black narrow curve refers
areas away from important section inform about time and frequency. to the cone of effect indicating to edge below which wavelet power is
The lag and lead phases connection between the studied variables is
depicted in the scenario of an arrow in the wavelet graphical displays. A Table 3
co-movement among two or more variables at such a specific scale is Descriptive statistics.
illustrated by the zero phase difference. Moreover, whenever the arrows IRE GFi GDP REEO IEPP
travel to the right (left), the time series are in phase (anti-phase) (Yan Mean 3.59E+10 4132260 4.81E+12 18.86842 2.14E+09
et al., 2021). Whenever the two sets are in phase, it means the two pa­ Median 1.12E+10 3969768 3.56E+12 18.08844 1.88E+09
rameters are heading in the same direction, whereas opposing Maximum 1.03E+11 9976511 1.18E+13 23.92682 5.95E+09
anti-phase means they are moving in the opposite way. Additionally, an Minimum 8.30E+09 1220461 8.28E+11 15.03704 9710000.
Std. Dev. 3.40E+10 2688918 3.53E+12 2.584380 1.39E+09
arrow going left-up or right-down on a wavelet coherence schematic Skewness 0.854170 0.542462 0.635669 0.538971 0.730992
graph illustrates that the first series is leading the other variable(s). Kurtosis 2.033846 1.960054 2.047880 2.127465 3.189284
When the arrow heads left-down, the second variable take the lead. Jarque-Bera 4.975347 2.917290 3.258661 2.484233 2.807087
Probability 0.083103 0.232551 0.196061 0.288772 0.245725

6
M. Li et al. Resources Policy 74 (2021) 102402

Fig. 1. Wavelet power spectrum for investment in renewable energy.

Fig. 3. Wavelet power spectrum for GDP (constant 2010 US$).

Fig. 2. Wavelet Power Spectrum for Renewable electricity output (% of total

electricity output). Fig. 4. Wavelet Power Spectrum for Investment in energy with private
participation (current US$).

terminated, and hence hard to interpret. The thick black outlines relate
2005 to $147.30 in 2008 (Stevenson, 2017). Hence, this increase causes
to the wavelet power spectrum, significant at the 5% level, where sig­
more volatility in the renewable energy investments. Besides, the global
nificance test outcomes are achieved by the use of Monte Carlo simu­
financial crises of 2007–2009 causes more uncertainty in the fossil fuel
lations. The power spectrum is represented by a color that ranges from
energy prices (Ibadoghlu, 2012). Which consequently contribute to in­
blue (weak) to the red (strong)” (Kirikkaleli, 2020). Concerning Fig. 1,
crease the renewable energy investments. Therefore, more fluctuations
the wavelet power spectrum captures volatility in the renewable energy
and volatility has been observed in the IRE variable. Moreover, no
investments from 1990 to 2020. However, the highest volatility in the
particular volatility has been observed beside these two volatility pe­
IRE has been observed between only two periods. Specifically, the
riods as mentioned by the cold areas of the figure.
highest volatility in the selected time span is observed between the 2002
With reference to Fig. 2, the largest volatility among all the variables
and 2006 period, and between 2009 and 2014 period. In the first volatile
under consideration is asserted only for the renewable electricity output
period, i.e., between 2002 and 2006, the global price hike in the 2003 to
as a percentage of the total electricity output. The wavelet power
2008 period leads the Chinese economy to invest more in the renewable
spectrum captures the volatility from 1998 till 2008. This increase in the
energy sources and minimize the dependency on the traditional fossil
renewable electricity output is due to the hike in oil prices due to higher
fuel consumption. Thus, an increase in the oil or energy demand in the
demand of the energy in the emerging economies (Stevenson, 2017).
emerging economies leads the energy prices to increase from $60 in

7
M. Li et al. Resources Policy 74 (2021) 102402

Fig. 5. Wavelet power spectrum for green finance. (For interpretation of the
Fig. 6. Wavelet Coherence between Investment in Renewable Energy and
references to color in this figure legend, the reader is referred to the Web
Renewable electricity output (% of total electricity output).
version of this article.)

Consequently, due to the higher energy prices, the investments in the

renewable energy sector increases that ultimately enhance the renew­
able energy electricity in China. With reference to Fig. 3 and 4, no
extensive volatility has been observed in the GDP and investment in the
renewable energy with private participation. Although the GDP of China
shows a smaller volatility in the period from 2004 to 2009, which could
probably be linked to the oil and energy price hike. However, the colder
area of the Fig. 3 reveals that there is no specific volatility in the GDP of
China. Additionally, the Fig. 4 captures the volatility of the investments
in the renewable energy with private participation. Still, no extensive
volatility has been observed. However, it is observed that after the oil
price hike in 2005 and the global financial crises of 2007–09, the fluc­
tuations occur, but very less significant. The colder area of the under
discussion figure reveal that the private participation in the renewable
energy investments did not reveal any significant volatility.
With reference to Figure- 5, the wavelet power spectrum captures the
volatility of the green finance in China throughout 1990 and 2020. In
the selected time span, the wavelet power spectrum identified only two
periods with the highest fluctuation or volatility in the green finance.
Firstly, the figure shows that the volatility in green finance is higher
between the 1995–2001 period. This volatility is mainly due to the oil
crises, such as Nigerian oil crises, which could have a spillover effect on
the Chinese energy sector (Chudik et al., 2011). Secondly, the figure
identified that the volatility which is lesser than the magnitude of the
Fig. 7. Wavelet coherence between investment in renewable energy and GDP
earlier one as represented by the lighter yellow color in the figure. Still,
(constant 2010 US$).
this could be reported due to the hike in the global energy prices, as the
volatility exhibits between the 2005 and 2009 period. Hence, the green
consideration in China. The IRE, REEO, GDP, IEPP, and the GFi variables
finance could be argued as increasing in both the shocks and crisis pe­
are utilized at level in the wavelet-based models because the wavelet
riods. Where, the green finance got more importance to tackle envi­
coherence technique works well if data is noisy, non-stationary, and has
ronmental issues and move economic performance at the same time.
numerous volatilities shifts and structural breakdowns. Warmer colored
(red) regions imply significant dependence among the variables,
4.2.2. Wavelet coherence results
whereas cool (blue) areas denote no connection amongst these variables
To capture the causal effect of the REEO, GDP, IEPP, and GFi on the
in the mentioned figures. The path of important causation is indicated by
IRE, the wavelet coherence methodology is used in this research, and the
arrow(s) encircled by a thick black line in wavelet coherence analysis.
results are shown in Fig. 6, 7, 8, and 9, respectively. To acquire formerly
Positive correlations are represented by arrows leading to the right,
concealed information, the technique, which is based on mathematics,
whereas negative correlations are represented by arrows heading to the
integrates information from both time and frequency domain causality
left. Furthermore, arrows going up, right-up, or left-down imply that the
approaches. As a result, the current research captures both short- and
control indicator causes the first one, whereas arrows pointing down,
long-run causal links between the IRE and other variables under

8
M. Li et al. Resources Policy 74 (2021) 102402

discussion figure, it is concluded that both the bidirectional causal as­

sociation is found but in the different time periods. From an empirical
viewpoint, this study supports the stance of Hoang et al. (2021a) the
Covid-19 pandemic reduces overall energy demand. However, the op­
portunity here is to make the renewable energy as the case for clean
energy investment, particularly in the electricity sector.
The causal association between the TRE and GDP has been analyzed
by employing the wavelet coherence approach and the estimated out­
comes are presented in the Fig. 7. The estimated outcomes unveil the
arrows heading towards up inside the black contour, as displayed by the
figure. This suggests that a change in the GDP significantly cause
changes in the IRE. Furthermore, the figure suggests that this causal
association between the IRE and the GDP is relatively for the short-run,
which covers only the period from 2003 to 2007, a total of five years
period. The findings of this study is consistent to the recent study pf
Alam and Muran (2020), which provides empirical evidence that eco­
nomic growth significantly promote renewable energy in the OECD
economies. As from the environmental Kuznets curve (EKC) hypothesis,
an increase in the income increases non-renewable energy sources
consumption in the first phase, which could also negatively affect
environment. However, after achieving the threshold level of income,
the economy start transition towards renewable energy source adapta­
tion, which not only contribute to environmental sustainability, but
consequently enhances economic growth.
Fig. 8. Wavelet Coherence between Investment in Renewable Energy and In­
vestment in energy with private participation (current US$). The causal association between IRE and IEPP has been identified via
wavelet coherence is provided in the Fig. 8. The estimated outcomes
found no significant causal association between the two variables.
However, less significant causal association for the shorter time period
between 2000 and 2003, has been reported inside the cone in the figure.
The arrows are found leading in the upward direction, which suggested
that the IEPP causes IRE. Still the colder (blue-green) shaded area sig­
nifies that there is weaker causal association between the IRE and in­
vestment in the energy sector with private participation.
The causal association between the IRE and GFi has also been
identified via employing the wavelet coherence approach and the esti­
mated outcomes are provided in the Fig. 9. In this specific causal rela­
tionship between the variables, the causality has been identified in the
two periods and both the short and long-run causality has been found
among these variables. Firstly, the arrows heading toward left up, which
is for a very long period relative to other variables under consideration.
In this regard, the causal effect reveals that from 1999 to 2009, there is a
unidirectional causality running from IRE to GFi. While for the second
period of the causality, the figure reported that the arrows are following
the same direction from 2009 to 2014 as followed by the earlier period.
This illustrates that there is also a unidirectional causal association
running from the IRE towards GFi. Hence, any policy change in the IRE
would significantly affect the green finance across China. Besides, the
frequency of the second period causal impact is found greater than the
first period causal effect. Hence, it is concluded that in both the periods,
investment in the renewable energy holds great importance in order to
maintain or regulate green finance across the country. Current findings
Fig. 9. Wavelet coherence between investment in renewable energy and green
are in line with the earlier findings of Štreimikienė and Kaftan (2021),
finance. (For interpretation of the references to color in this figure legend, the
and Nawaz et al. (2021), which empirically demonstrates that green
reader is referred to the Web version of this article.)
finance is playing a critical role in renewable energy. Also, green finance
helps in the development of new renewable technology initiatives,
right-down, or left-up indicate that variations in the first variable have a
which not only the government interested in, but the general public is
substantial impact on the second variable.
also willing to pay higher prices. Moreover, an increase in the renewable
The causal association between IRE and REEO is presented in the
energy production leads to win-win situation regarding economic
Fig. 6. The estimated figure unveils the causal association between the
growth and environmental sustainability as mentioned by Guo et al.
investment in renewable energy and renewable electricity only at two
(2021) and Rafique et al. (2021).
specific periods. Firstly, arrows are found pointing towards right-up
Based on the findings, it is concluded that various variables under
between the 2004 and 2009 period, which indicates that renewable
consideration are showing volatility or fluctuation in different periods.
electricity output significantly causes IRE at 5% level. While the second
Also, it is found that some of the variables showed bidirectional causal
period causal association is found significant only in the 2013 and 2014.
association with the IRE, while some variables showed unidirectional
The arrow heads are leading toward right down, which indicates that
causal association with IRE. Still, all of these causal associations among
variation in the IRE substantially causes REEO. Hence, from the under
the variables are found only in pre-pandemic periods. However, no

9
M. Li et al.
volatility causal association has been found after the emergence of
Covid-19 pandemic in China.
5. Conclusion and policy implications
There is an extensive literature that investigated investment in the
renewable energy along with the other economic, financial and energy
related indicators. Also, the literature tends to investigate the impact of
Covid-19 in various environmental, financial, and economic variables.
However, this study identifies the gap in the literature relevant to the
causal association between investments in the renewable energy, green
finance, economic growth, renewable electricity output and the energy
investment with private investment after the Covid-19 emergence. To
fill this gap, current study used the estimation approach unlike the
methods adopted by the conventional studies. Current study investi­
gated time series data covering the period from 1990 to 2020 for the
most affected economy, i.e., China. For the empirical investigation, this
research used the wavelet power spectrum and the wavelet coherent
approach. This approach is efficient because it provides both the short
and the long-run causal association among the variables under consid­
eration. The estimated results of the wavelet power spectrum reveal that
IRE shows volatility between the 2003–07 and the 2009–13 periods.
While other variables such as REEO and GFi showed volatility in the one
and two periods, respectively. In contrast, the variables such as GDP and
IEPP did not indicate any volatility across the selected time period.
Concerning the causal relation among the variables, both the uni­
directional and bidirectional causal relationship has been found among
them. Specifically, a bidirectional causal relationship has been found
between IRE and REEO, but at different time periods. However, a uni­
directional causal association has been found that runs from GDP to IRE,
but only in the short-run. Additionally, there is also a unidirectional
causal link running from IRE to GFi in both the short run and the long-
run. Which indicates that IRE could be an important factor for the GFi.
Besides, there is no causal link identified between IEPP and IRE, which
illustrates that the private investments could not be an effective policy
measure for the IRE. Moreover, all the estimated outcomes reveal
volatility and causality (both unidirectional and bidirectional) at
different periods, i.e., both short run and the long run. However, no
volatility or causal association has been reported from the empirical
investigation IRE and control variables including REEO, GDP, IEPP and
GFi, in the selected time period.
Based on the empirical findings, current study recommends some
practical policy implications which require instant attention and
implementation. Firstly, the empirical findings reveals the volatile
behavior of renewable energy investment, green finance and renewable
electricity output. Therefore, policies must be design that could control
the volatility in these variables either by providing fixed ratio of budget,
or by proper check and balance in these sectors. Secondly, it is empiri­
cally proved that investment in renewable energy significantly promote
green finance, in this regard, the renewable energy investment must be
enhanced which could also contribute to other environmental sustain­
ability factors. Also, green finance enhancement significantly contribute
to renewable energy technologies. Therefore, policies must consider
green finance enhancement, which will encourage renewable energy
investment and renewable energy generation. Moreover, the renewable
energy electricity output significantly causes and affect the renewable
energy investment, thus policies must be innovation adopted, which
considers renewable electricity rather than the fossil fuel generated
electricity. If these policies are implemented, it is believed that these
measures could help reduce economic, environmental, and financial
uncertainties.
This research study is limited only to China’s economic, environ­
mental, and renewable energy finances. However, the under discussion
study could be extended to other countries and regions of across the
globe. This time series analysis only identified the causal association
between investment in renewable energy, green finance, renewable
10
Resources Policy 74 (2021) 102402
energy electricity output, GDP, and investment in energy with private
participation while considering the Covid-19 affects. However, the
future researchers are recommended to analyze both the pre and post
Covid-19 era, with the energy prices and renewable energy by consid­
ering other natural resources.
Funding
Dr. Menghan Li is thankful to Research on regional Public Service
Supply and Cooperation in the context of Guangdong-Hong Kong-Macao
Greater Bay Area, SZ2020B015 for the financial support.
This work was supported in part by the youth program of NSFC under
grant 71704154.
CRediT authorship contribution statement
Menghan Li: Conceptualization, Methodology, Software, Data
curation, Formal analysis, Writing – original draft. Nawzad Majeed
Hamawandy: Writing – review & editing, Software. Fazle Wahid:
Writing – review & editing, Supervision, Project administration. Husam
Rjoub: Conceptualization, Writing – review & editing. Zongke Bao:
Conceptualization, Software, Formal analysis.
Acknowledgement
The authors declare that they have no known competing financial
interests or personal relationships that could have appeared to influence
the work reported in this paper. The datasets used during the current
study are available on request. We are grateful to editor and anonymous
referee’s for valuable comments and helpful suggestions.
References
Alam, M.M., Murad, M.W., 2020. The impacts of economic growth, trade openness and
technological progress on renewable energy use in organization for economic co-
operation and development countries. Renew. Energy 145, 382–390. https://doi.
org/10.1016/j.renene.2019.06.054.
Azam, A., Rafiq, M., Shafique, M., Yuan, J., 2021. Renewable electricity generation and
economic growth nexus in developing countries: an ARDL approach. Econ. Res.-
Ekon. Istraž. 34, 2423–2446. https://doi.org/10.1080/1331677X.2020.1865180.
Barbier, E.B., Burgess, J.C., 2020. Sustainability and development after COVID-19. World
Dev. 135, 105082. https://doi.org/10.1016/j.worlddev.2020.105082.
Bashir, M.A., Sheng, B., Dogan, B., Sarwar, S., Shahzad, U., 2020. Export product
diversification and energy efficiency : empirical evidence from OECD countries.
Struct. Change Econ. Dynam. 55, 232–243. https://doi.org/10.1016/j.
strueco.2020.09.002.
Berensmann, K., Volz, U., Alloisio, I., Bak, C., Bhattacharya, A., Leipold, G., Schindler, H.,
MacDonald, L., Huifang, T., Yang, Q., 2017. Fostering Sustainable Global Growth
through Green Finance–What Role for the G20. T20 Task Force on Climate Policy
and Finance.
Chudik, A., Pesaran, M.H., Tosetti, E., 2011. Weak and strong cross-section dependence
and estimation of large panels. https://doi.org/10.1111/j.1368-423X.2010.00330.x.
Cui, L., Li, R., Song, M., Zhu, L., 2019. Can China achieve its 2030 energy development
targets by fulfilling carbon intensity reduction commitments? Energy Econ. 83,
61–73. https://doi.org/10.1016/j.eneco.2019.06.016.
Cui, L., Sun, Y., Song, M., Zhu, L., 2020. Co-financing in the green climate fund: lessons
from the global environment facility. Clim. Pol. 20, 95–108. https://doi.org/
10.1080/14693062.2019.1690968.
Dogan, B., Driha, O.M., Shahzad, U., Lorente, D.B., 2020. The mitigating effects of
economic complexity and renewable energy on carbon emissions in developed
countries. Sustain. Dev. 1–12 https://doi.org/10.1002/sd.2125.
EPS, 2021. Chinese Economy Prediction System [Online] Available at: http://www.eps
chinadata.com/index.html?flag. (Accessed 10 July 2021).
Fareed, Z., Iqbal, N., Shahzad, F., Shah, S.G.M., Zulfiqar, B., Shahzad, K., Hashmi, S.H.,
Shahzad, U., 2020. Co-variance nexus between COVID-19 mortality, humidity, and
air quality index in Wuhan, China: new insights from partial and multiple wavelet
coherence. Air Qual. Atmos. Heal. 13, 673–682. https://doi.org/10.1007/s11869-
020-00847-1.
Fatima, T., Shahzad, U., Cui, L., 2020. Renewable and nonrenewable energy
consumption, trade and CO2 emissions in high emitter countries: does the income
level matter? J. Environ. Plann. Manag. 64, 1227–1251. https://doi.org/10.1080/
09640568.2020.1816532.
Flammer, C., 2020. Green bonds: effectiveness and implications for public policy.
Environmental and Energy Policy and the Economy 1, 95–128.
Ghazouani, A., Xia, W., Ben Jebli, M., Shahzad, U., 2020. Exploring the role of carbon
taxation policies on CO2 emissions: contextual evidence from tax implementation
M. Li et al.
and non-implementation European countries. Sustainability 12, 1–16. https://doi.
org/10.3390/su12208680.
Gosens, J., Jotzo, F., 2020. China’s post-COVID-19 stimulus: no green new deal in sight.
Environmental innovation and societal transitions 36, 250–254. https://doi.org/
10.1016/j.eist.2020.07.004.
Goupillaud, P., Grossmann, A., Morlet, J., 1984. Cycle-octave and related transforms in
seismic signal analysis. Geoexploration 23, 85–102. https://doi.org/10.1016/0016-
7142(84)90025-5.
Guo, J., Zhou, Y., Ali, S., Shahzad, U., Cui, L., 2021. Exploring the role of green
innovation and investment in energy for environmental quality : an empirical
appraisal from provincial data of China. J. Environ. Manag. 292, 112779. https://
doi.org/10.1016/j.jenvman.2021.112779.
He, L., Zhang, L., Zhong, Z., Wang, D., Wang, F., 2019. Green credit, renewable energy
investment and green economy development: empirical analysis based on 150 listed
companies of China. J. Clean. Prod. 208, 363–372. https://doi.org/10.1016/j.
jclepro.2018.10.119.
Hoang, A.T., Nguyen, X.P., Le, A.T., Huynh, T.T., Pham, V.V., 2021a. COVID-19 and the
global shift progress to clean energy. J. Energy Resour. Technol. 143, 094701
https://doi.org/10.1115/1.4050779.
Hoang, A.T., Nižetić, S., Olcer, A.I., Ong, H.C., Chen, W.H., Chong, C.T., Thomas, S.,
Bandh, S.A., Nguyen, X.P., 2021b. Impacts of COVID-19 pandemic on the global
energy system and the shift progress to renewable energy: opportunities, challenges,
and policy implications. Energy Pol. 154, 112322. https://doi.org/10.1016/j.
enpol.2021.112322.
Höhne, N., Khosla, S., Fekete, H., Gilbert, A., 2012. Mapping of green finance delivered
by IDFC members in 2011. Cologne: Ecofys. Available from: http://www.idfc.org/D
ownloads/Publications/01_green_finance_mappings/IDFC_Green_Finance_Mappin
g_Report_2012_14-06-12.pdf.
Ibadoghlu, G., 2012. Azerbaijan’s economic model and its development since
independence. Available at SSRN 3110219. https://doi.org/10.2139/ssrn.3110219.
Katona, K., 2020. Is lack of morality an explanation for the economic and financial crisis?
A catholic point of view. Int. Adv. Econ. Res. 26, 407–418. https://doi.org/10.1007/
s11294-020-09809-w.
Khan, H., Khan, I., Binh, T.T., 2020. The heterogeneity of renewable energy
consumption, carbon emission and financial development in the globe: a panel
quantile regression approach. Energy Rep. 6, 859–867. https://doi.org/10.1016/j.
egyr.2020.04.002.
Kirikkaleli, D., 2020. Does political risk matter for economic and financial risks in
Venezuela? Journal of Economic Structures 9, 1–10. https://doi.org/10.1186/
s40008-020-0188-5.
Kong, Q., Shen, C., Li, R., Wong, Z., 2021. High-speed railway opening and urban green
productivity in the post-COVID-19: evidence from green finance. Global Finance J.
49, 100645. https://doi.org/10.1016/j.gfj.2021.100645.
Li, Q., Cherian, J., Shabbir, M.S., Sial, M.S., Li, J., Mester, I., Badulescu, A., 2021.
Exploring the relationship between renewable energy sources and economic growth.
The case of SAARC countries. Energies 14, 520. https://doi.org/10.3390/
en14030520.
Nawaz, M.A., Seshadri, U., Kumar, P., Aqdas, R., Patwary, A.K., Riaz, M., 2021. Nexus
between green finance and climate change mitigation in N-11 and BRICS countries:
empirical estimation through difference in differences (DID) approach. Environ. Sci.
Pollut. Control Ser. 28, 6504–6519. https://doi.org/10.1007/s11356-020-10920-y.
Noh, H.J., 2019. Financial Strategies to Accelerate Green Growth. Handbook of Green
Finance. Sustainable Development. Springer, Singapore, pp. 37–62.
Pal, D., Mitra, S.K., 2017. Time-frequency contained co-movement of crude oil and world
food prices: a wavelet-based analysis. Energy Econ. 62, 230–239. https://doi.org/
10.1016/j.eneco.2016.12.020.
Paris, International Energy Agency, 2019. World energy investment 2019—data tables.
Available online: https://www.iea.org/reports/world-energy-investment-2019.
(Accessed 17 July 2021).
IRENA, 2021. International Renewable Energy Agency [Online] Available at: https
://www.irena.org/statistics. (Accessed 10 July 2021).
Peimani, H., 2018. Financial barriers to development of renewable and green energy
projects in Asia (No. 862). ADBI Working Paper. http://hdl.handle.net/104
19/190283.
Rafique, M.Z., Doğan, B., Husain, S., Huang, S., Shahzad, U., 2021. Role of economic
complexity to induce renewable energy: contextual evidence from G7 and E7
11
Resources Policy 74 (2021) 102402
countries. Int. J. Green Energy 18, 745–754. https://doi.org/10.1080/
15435075.2021.1880912.
Redshaw, L., 2016. Carbon trading. Available online: http://www.ecigl.com/investment
-carbon-trading.shtml. (Accessed 14 July 2021).
Sachs, J., Woo, W.T., Yoshino, N., Taghizadeh-Hesary, F. (Eds.), 2019. Handbook of
Green Finance: Energy Security and Sustainable Development. Springer, Singapore.
Shahzad, U., Ferraz, D., Nguyen, H., Cui, L., 2022. Investigating the spill overs and
connectedness between financial globalization, high-tech industries and
environmental footprints: fresh evidence in context of China. Technol. Forecast. Soc.
Change 174, 121205. https://doi.org/10.1016/j.techfore.2021.121205.
Shahzad, U., Schneider, N., Ben, M., Panth, P., 2021. How coal and geothermal energies
interact with industrial development and carbon emissions ? An autoregressive
distributed lags approach to the Philippines. Resour. Pol. 74, 102342. https://doi.
org/10.1016/j.resourpol.2021.102342.
Sharma, G.D., Ibrahim, M., Shahzad, U., Jain, M., Chopra, R., 2021. Exploring the nexus
between agriculture and greenhouse gas emissions in BIMSTEC region : the role of
renewable energy and human capital as moderators. J. Environ. Manag. 297,
113316. https://doi.org/10.1016/j.jenvman.2021.113316.
Shipalana, P., 2020. Green Finance Mechanisms in Developing Countries: Emerging
Practice.
Song, M., Wang, S., Zhang, H., 2020. Could environmental regulation and R&D tax
incentives affect green product innovation? J. Clean. Prod. 258, 120849. https://doi.
org/10.1016/j.jclepro.2020.120849.
Song, M., Xie, Q., Shen, Z., 2021. Impact of green credit on high-efficiency utilization of
energy in China considering environmental constraints. Energy Pol. 153, 112267.
https://doi.org/10.1016/j.enpol.2021.112267.
Stevenson, C., 2017. 2003-2008 oil price shock: changing effects of oil shocks on the
economy. Retrieved from. https://preserve.lehigh.edu/library-research-prize/14.
Štreimikienė, D., Kaftan, V., 2021. Green finance and the economic threats during
COVID-19 pandemic. Terra economicus 19, 105–113. https://doi.org/10.18522/
2073-6606-2021-19-2-105-113.
Taghizadeh-Hesary, F., Yoshino, N., Phoumin, H., 2021. Analyzing the characteristics of
green bond markets to facilitate green finance in the post-COVID-19 world.
Sustainability 13 (10), 5719. https://doi.org/10.3390/su13105719.
Tahir, M.F., Haoyong, C., Mehmood, K., Ali, N., Bhutto, J.A., 2019. Integrated energy
system modeling of China for 2020 by incorporating demand response, heat pump
and thermal storage. Ieee Access 7, 40095–40108. https://doi.org/10.1109/
ACCESS.2019.2905684.
Torrence, C., Compo, G.P., 1998. A practical guide to wavelet analysis. Bull Am Meteorol
Soc B AM METEOROL SOC 79, 61–78. https://doi.org/10.1175/1520-0477(1998)
079<0061:APGTWA>2.0.CO;2.
Wang, L., Su, C.W., Ali, S., Chang, H.L., 2020. How China is fostering sustainable growth:
the interplay of green investment and production-based emission. Environ. Sci.
Pollut. Control Ser. 27, 39607–39618. https://doi.org/10.1007/s11356-020-09933-
4.
World Bank, 2021. World Development Indicators [Online] Access date: 10 July, 2021,
Available at: http://databank.worldbank.org/data/reports.aspx?
source=world-development-indicators#.
Yan, Y., Shah, M.I., Sharma, G.D., Chopra, R., Fareed, Z., Shahzad, U., 2021. Can tourism
sustain itself through the pandemic : nexus between tourism , COVID-19 cases and
air quality spread in the ‘ Pineapple State ’ Hawaii. Curr. Issues Tourism 1–20.
https://doi.org/10.1080/13683500.2021.1965553, 0.
Yoshino, N., Taghizadeh-Hesary, F., Otsuka, M., 2021. Covid-19 and optimal portfolio
selection for investment in sustainable development goals. Finance Res. Lett. 38,
101695. https://doi.org/10.1016/j.frl.2020.101695.
Zhang, D., Mohsin, M., Rasheed, A.K., Chang, Y., Taghizadeh-Hesary, F., 2021. Public
spending and green economic growth in BRI region: mediating role of green finance.
Energy Pol. 153, 112256. https://doi.org/10.1016/j.enpol.2021.112256.
Zhou, X., Song, M., Cui, L., 2020a. Driving force for China’s economic development
under Industry 4.0 and circular economy: technological innovation or structural
change? J. Clean. Prod. 271, 122680. https://doi.org/10.1016/j.
jclepro.2020.122680.
Zhou, X., Tang, X., Zhang, R., 2020b. Impact of green finance on economic development
and environmental quality: a study based on provincial panel data from China.
Environ. Sci. Pollut. Control Ser. 27, 19915–19932. https://doi.org/10.1007/
s11356-020-08383-2.