A Step Toward The Attainment of Carbon Neutrality and SDG-13: Role of Financial Depth and Green Technology İnnovation

Abstract

Following the recommendations of COP28 and Sustainable Development Goal −13 (Climate Action), the present study examines the role of financial depth and green technology innovation in carbon neutrality and climate change. This study measures the relationship between green innovation, technological innovation, ICT, financial depth, economic growth, carbon emission, and ecological footprint from 1990 to 2021 in the USA. The autoregressive distributed lag (ARDL) model examines the relationship between the above-mentioned variables and their impacts on each other. Results reveal that green innovation, technological innovation, ICT, and financial depth significantly negatively impact ecological footprint and carbon emissions in both the short and long run. In contrast, economic growth positively impacts carbon emissions and ecological footprint. Green and financial innovation-centric policies are suggested to the USA to attain net zero emission and SDG-13.