Assessing green financing with emission reduction and green economic recovery in emerging economies

The aim of the study is to assess the role of green financing on carbon emission reduction and green economic recovery in emerging economies context. The BCC DEA technique of data envelopment analysis (DEA) is used to examine the nexus among variables by applying small input–output estimation parameters. Researchers found that green financing strategies like government subsidies and tax refunds for green financing are effective in cutting carbon emissions in developing nations. As a result, a panel of data from 2016 to 2020 is employed. Green financing measures assist reduces carbon emissions and prolong the green economic rebound, according to our research. Renewable energy companies had better ranges of total investment efficiency and size efficiency, and their levels of green economic recovery promotion were more than 0.457% percent, with a reduction in carbon emissions of 29.7 percent in developing countries backed by present government subsidies of 16 percent and taxes rebates of 11 percent. Green financing policies have a favorable impact on the green economy’s revival. The study’s policy implications include that green financing policies be implemented successfully to reduce carbon emissions more efficiently and to make climate change beneficial to countries in order to promote economic recovery over time.