Climate Resilience, Green Finance and Sustainable Economic Development: An Evidence from High and Upper-Middle-Income Countries

The study provides a comprehensive analysis of the impact of green finance and climate resilience on sustainable economic development. The annual data utilized by the study covers 38 high and upper-middle-income countries during the time-period of 2011 and 2019. This study employs an augmented system GMM estimator to address the issues of endogeneity, dynamic dependence, and simultaneity. The findings show that both climate resilience and green finance have combined and significant impact on sustainable economic development. The results of the study clearly indicate that renewable energy transitions, clean and green infrastructure, and low carbon technologies has significant positive contribution in sustainable development. Green investments offer a pathway for environmental improvements, encourages innovation, and reallocation of financial flows on the way to sustainable sectors. The findings of this study show that there is a significant negative relation between green finance and climate resilience. The findings of the study suggest that both climate resilience and green finance are significant important, but their combined impact should be managed carefully. The study implies that nations with high investment in green finance and climate control projects can enjoy relatively more sustainable economic development. Policymakers should account for fiscal capacity, avoid policies which overlapped and prioritize the integration except duplication.