Pursuing a carbon-neutral world: How digital exports,financial stability,and energy security contribute to green growth

Abstract

Digital exports, financial stability, and energy security are vital in determining green growth. However, no empirics in the past have shed light on the relationship between digital exports, financial stability, energy security, and green growth. The main focus of the analysis is how digital exports, financial stability, and energy security affect green growth in 33 world's leading energy-consuming economies from 2000 to 2021. To that end, the study employed the novel cross-sectionally augmented autoregressive distributed lag (CS-ARDL) model. Our findings show that digital exports and financial stability boost long-run green growth in the full sample and in Asian, European, and American models, while energy security risks hinder long-run green growth in the full sample and in Asian, European, and American models. Environmental technology promotes long-run green growth in full-sample and in European and American models, and renewable energy consumption helps boost green growth in full-sample and European models. In the short run, financial stability is crucial for green growth in the full sample and in Asian and American models, while environmental technology benefits green growth in all models. Integrating digital exports, financial stability, and sustainable energy practices for ecologically sustainable and commercially rewarding green growth in a fast-changing global context is essential.