This study highlights the critical role of green macro-prudential policy (GMPP) in green material monitor (GMM). Using data from 64 countries from 2000 to 2022, the analysis uses the panel vector autoregressive method and the dynamic panel threshold model. The results suggest that GMPP received positive shocks from GMM in the first period, and its responses turned negative from the second period onwards. In contrast, the impact of GMPP on GMM was negative and became more significant in the first four periods. Its negative impacts decreased to zero by the end of the period. Furthermore, the threshold quantity of green macro-policy is 87.5%. Below the threshold, GMPP hurts total resource usage (green accounting), while above the threshold, this effect becomes less significant. Therefore, central banks should link preferential credit and refinancing rates to verified environmental disclosures, thereby motivating firms to adopt transparent GMM. Such a GMPP aligns financial incentives with sustainability reporting and strengthens accountability in the financial system.
LiQKhanAXuM,et al.The regulatory power of fiscal and monetary policies in driving renewable energy: the moderating influence of political stability in belt and road initiative countries. Environ Impact Assess Rev2025; 110: 107653.
3.
FuCLuLPirabiM. Advancing green finance: a review of sustainable development. DESD2023; 1: 20.
4.
MudaligeHMN. Emerging new themes in green finance: a systematic literature review. Future Bus J2023; 9. doi:10.1186/s43093-023-00287-0
5.
AdebayoTSÖzkanOOlanrewajuVO,et al.Do fossil-fuel subsidies, Fintech innovation, and digital ICT transform ecological quality in Turkey? Evidence from modified cross-quantile regression. Appl Econ2025: 1–19. https://doi.org/10.1080/00036846.2025.2520578
6.
AdebayoTSStaniewskiMWUzunB. Policy implications of technological innovations, domestic material consumption and renewable energy consumption for achieving sustainable development goals in G7 economies. Int J Sustain Dev World Ecol2025; 32: 465–484.
7.
ButtSRamzanMChohanMA,et al.Analyzing the synergies between green energy, green technology, and environmental sustainability in China: Novel insights from time-varying quantile approaches. Gondwana Research [Internet], https://www.sciencedirect.com/science/article/pii/S1342937X25002825 (17 September 2025, accessed 23 January 2026).
8.
zu Ermgassen SOSE, Löfqvist S. Financing ecosystem restoration. Curr Biol2024; 34: R412–R417.
9.
AdebayoTSOzsahinDUOlanrewajuVO,et al.Decoding the environmental role of nuclear and renewable energy consumption: a time-frequency perspective. Ann Nucl Energy2025; 223: 111660.
10.
NasirMAHuynhDTLTramXHT. Role of financial development, economic growth & foreign direct investment in driving climate change: a case of emerging ASEAN. J Environ Manag2019; 242: 131–141.
11.
ÖzokcuSÖzdemirÖ. Economic growth, energy, and environmental Kuznets curve. Sustain Energy Rev2017; 72: 639–647.
12.
BekhetHAMatarAYasminT. CO2 emissions, energy consumption, economic growth, and financial development in GCC countries: dynamic simultaneous equation models. Renew Sustain Energy Rev2017; 70: 117–132.
13.
CharfeddineLBen KhediriK. Financial development and environmental quality in UAE: cointegration with structural breaks. Renew Sustain Energy Rev2016; 55: 1322–1335.
14.
Awaworyi ChurchillSInekweJSmythR,et al.R&D intensity and carbon emissions in the G7: 1870–2014. Energy Econ2019; 80: 30–37.
15.
MinnitiAVenturiniF. The long-run growth effects of R&D policy. Res Policy2017; 46: 316–326.
16.
AcemogluDOzdaglarATahbaz-SalehiA. Systemic risk and stability in financial networks. Am Econ Rev2015; 105: 564–608.
17.
D’OrazioPPopoyanL. Fostering green investments and tackling climate-related financial risks: which role for macroprudential policies?Ecol Econ2019; 160: 25–37.
ThanhHLNgọcHPTThuHNT, et al.Chính phủ điện tử có phải là động lực để thúc đẩy mật độ khởi nghiệp của một quốc gia? Bằng chứng thực nghiệm tại châu Âu. TC KTPT2022; 299: 14–22.
20.
HaL. The role of financial development in improving marine living resources towards sustainable blue economy. J Sea Res2023; 195.
21.
PesaranHHShinY. Generalized impulse response analysis in linear multivariate models. Econ Lett1998; 58: 17–29.
22.
CiccarelliMMarottaF. Demand or supply? An empirical exploration of the effects of climate change on the macroeconomy. Energy Econ2024; 129: 107163.
23.
SternerTEwaldJSternerE. Economists and the climate. J Behav Exper Econ2024; 109: 102158.
24.
WangFHarindintwaliJDWeiK, et al.Climate change: strategies for mitigation and adaptation. TIG2023; 1: 100015–95.
25.
SternNStiglitzJE. Climate change and growth. Ind Corp Change2023; 32: 277–303.
Hidalgo-OñateDFuertes-FuertesICabedoJD. Climate-related prudential regulation tools in the context of sustainable and responsible investment: a systematic review. Clim Policy2023; 23: 704–721.
28.
PunziMT. The role of macroprudential policies under carbon pricing. Int Rev Econ Finance2024; 93: 858–875.
Le QuangGScialomL. Better safe than sorry: macroprudential policy, COVID 19 and climate change. Int Econ2022; 172: 403–413.
33.
MintoAPrinzSWulffM. A risk characterization of regulatory arbitrage in financial markets. Eur Bus Org Law Rev2021; 22: 719–752.
34.
ColeMA. Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages. Ecol Econ2004; 48: 71–81.
35.
KellenbergDK. An empirical investigation of the pollution haven effect with strategic environment and trade policy. J Int Econ2009; 78: 242–255.
36.
PorterMEVan der LindeC. Toward a new conception of the environment-competitiveness relationship. J Econ Perspect1995; 9: 97–118.
37.
ColeMAElliottRJR. FDI and the capital intensity of “dirty” sectors: a missing piece of the pollution haven puzzle. Rev Dev Econ2005; 9: 530–548.
38.
PorterME. Competitive advantage: creating and sustaining superior performance. Simon and Schuster, 2008, 474 p.
39.
PorterM. America’s green strategy. Business and the environment: a reader. Vol. 33. 1996, p. 1072.
40.
LanoiePLaurent-LucchettiJJohnstoneN,et al.Environmental policy, innovation and performance: new insights on the porter hypothesis. J Econ Manag Strategy2011; 20: 803–842.
41.
PalmerKOatesWEPortneyPR. Tightening environmental standards: the benefit-cost or the no-cost paradigm?J Econ Perspect1995; 9: 119–132.
42.
AmbecSCohenMAElgieS,et al.The porter hypothesis at 20: can environmental regulation enhance innovation and competitiveness?Rev Environ Econ Policy2013; 7: 2–22.
43.
AslamNYangWArslanM,et al.Environmental regulations as a solution for energy security risk and energy gap: evidence from highly energy intensive economies. Appl Energy2024; 374: 123992.
44.
YunxiaXYuqingN. The technological advancement environmental regulations and their impact on energy efficiency and CO2 emissions. Sci Rep2025; 15: 2781.
45.
HeFGohGAl-mulaliU,et al.The influences of economic indicators on environmental pollution in Malaysia. Int J Energy Econ Policy2019; 9: 123–131.
46.
JalilKFerozTZahraP. Unlocking climate finance: a roadmap to sustainable mining in Pakistan. J Phytochem Sustain Agricul Environ Sci2025; 81: 7845–7851.
47.
KatirciogluSKöksalCKatirciogluS. The role of financial systems in energy demand: a comparison of developed and developing countries. Heliyon2021; 7: e07323.
48.
KöksalCKatirciogluSKatirciogluS. The role of financial efficiency in renewable energy demand: evidence from OECD countries. J Environ Manag2021; 285: 112122.
49.
PereraKKuruppuarachchiDKumarasingheS,et al.The impact of carbon disclosure and carbon emissions intensity on firms’ idiosyncratic volatility. Energy Econ2023; 128: 107053.
50.
WilsonCShrimaliGCaldecottB. The effect of capital markets and climate policy on low and high-carbon energy investment: evidence from electric utilities. Energy Res Soc Sci2025; 127: 104163.
51.
KatirciogluSKatirciogluS. The effects of environmental taxation on stock returns of renewable energy producers: evidence from Turkey. Renew Energy2023; 208: 311–323.
52.
AlogoskoufisSDunzNEmambakhshT, et al. ECB economy-wide climate stress test: Methodology and results [Internet]. ECB Occasional Paper. Report No.: 281, https://www.econstor.eu/handle/10419/246212 (2021, accessed 28 May 2024).
AsifMAminNShabbirMS,et al.Greening the Path to Carbon Neutrality: The Role of Technical Factors in Reducing Carbon Emissions in South Asia Post-COP 28. Sustainable Development [Internet], https://onlinelibrary.wiley.com/doi/abs/10.1002/sd.70032 (accessed 16 July 2025).
XueSJiangYWeiQ. Green financial accounting and transition in the mining sector in emerging economies. Resour Policy2024; 89: 104683.
72.
SajidMAnsariMAATanveerA, et al.Evaluating the influence of green growth, institutional quality and financial inclusion on financial stability: evidence by sustainable finance theory. Environ Sci Pollut Res2023; 30: 115965–83.
DownarBErnstbergerJReichelsteinS, et al.The impact of carbon disclosure mandates on emissions and financial operating performance. Rev Account Stud2021; 26: 1137–1175.
78.
LuTRuanLWangY,et al.Real effects of greenhouse gas disclosures. China J Account Res2024; 17: 100360.
