Green finance, climate change, and economic cycles: Sustaining innovation in technology

Abstract

Green technology has emerged due to the global emphasis on energy transition and the implementation of environmentally friendly, low-carbon measures brought about by adopting sustainable development objectives. The purpose of the article is to examine the relationship between innovations in green technology (GTI), the price of oil (OP), energy efficiency (CE), sustainable growth (SD), and the cycle of the economy (EC) using the time-dependent variable vectors automatic regression (TVP-VAR) connection technique. Research indicates that quick connections are essential for years of statistical analysis. The SD serves as the principal transmitter, whilst the EC functions as the central receiver. Furthermore, the examination of dynamic components reveals that the transmission of impact varies in both frequency and intensity across time. Substantial research indicates that GTI mitigates operational shocks and fosters long-term economic cooperation, which is attributable to increasing interconnection and prevailing trends. Nonetheless, contemporary events and sustainable development impact its efficacy in the short run. The primary achievement of this study is the integration of GTI, energy markets, economic cycles, and SD into a unified framework, along with a comprehensive knowledge of their interrelationships. The research examines short-term and long-term trends in market performance from a time-frequency domain perspective. The document finishes with other legislative proposals, including accelerating the transition to renewable energy sources and promoting the development of ecologically advantageous technology.