Green finance and carbon emissions in the EU: moderating role of biofuels and technology

Morshadul Hasan; Ariful Hoque

doi:10.1007/s40821-025-00318-6

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Green finance and carbon emissions in the EU: moderating role of biofuels and technology

Journal article

Open access

Peer reviewed

Green finance and carbon emissions in the EU: moderating role of biofuels and technology

Morshadul Hasan and Ariful Hoque

Eurasian business review

2025

DOI: https://doi.org/10.1007/s40821-025-00318-6

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Abstract

Green finance

Biofuel consumption

Carbon emissions

European union 2050 long-term strategy

Technological progress

Electric vehicles

This study describes its objectives by leveraging the significance of the European Union (EU)’s 2050 long-term carbon neutrality strategy to examine the impact of green financing on carbon dioxide (CO 2 ) emissions. The experiments include models based on cointegrated relations, particularly unit root testing, panel cointegration testing, and fully modified ordinary least squares and dynamic ordinary least squares regressions, using EU countries’ panel data covering 2001 to 2019. We first analyze the impact of green finance on CO 2 emissions and find an insignificant relationship. When we incorporate biofuel consumption and technological progress, we observe a significant link between green finance and reduced carbon emissions. Our findings suggest that green finance becomes substantially effective in lowering emissions when focusing on the biofuel industry and the transition to low-carbon transportation. The findings provide relevant implications for the EU 2050 long-term strategy for reducing CO 2 emissions.

Details

Title: Green finance and carbon emissions in the EU: moderating role of biofuels and technology
Authors/Creators: Morshadul Hasan - Murdoch University
Ariful Hoque - Murdoch University, College of Business
Publication Details: Eurasian business review
Publisher: Springer Nature
Number of pages: 18
Identifiers: 991005796264507891
Copyright: © The Author(s) 2025
Murdoch Affiliation: Murdoch Business School; College of Business
Language: English
Resource Type: Journal article

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Citation topics: 6 Social Sciences; 6.115 Sustainability Science; 6.115.234 Carbon Mitigation
Web Of Science research areas: Business; Economics; Management
ESI research areas: Economics & Business