Title: GREEN FINANCE AND SUSTAINABLE ECONOMIC GROWTH: AN EMPIRICAL STUDY
Author: Dr. K. Malarvizhi and Dr. S. Hepsiba Flosel
Abstract:

The transition towards a low-carbon and resource-efficient economy has increased the importance of green finance as a mechanism for mobilizing financial resources towards environmentally sustainable economic activities. In emerging economies such as India, green finance has gained increasing significance in supporting renewable energy development, clean technologies, sustainable infrastructure, and climate-resilient economic growth. This study examines the relationship between green finance and sustainable economic growth in India, with particular emphasis on the role of financial development, renewable energy investment, environmental sustainability, and economic growth dynamics. Using time-series data for India, the study proposes an empirical framework to investigate whether the expansion of green financial instruments and environmentally oriented investments contributes to sustainable economic growth. Appropriate econometric techniques, including unit-root tests, co-integration analysis, and causality and/or auto regressive distributed lag (ARDL) estimation, can be employed depending on the characteristics and availability of the data.

Keywords: Green Finance; Sustainable Economic Growth; Renewable Energy; Green Investment; Financial Development; Carbon Emissions; India; Sustainable Finance.
DOI: https://doi.org/10.38193/IJRCMS.2026.8565
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Date of Publication: 27-10-2026
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Published Vol & Issue: Volume 8 Issue 5 September-October 2026