EXPLORING THE EFFECT OF GREEN FINANCE, FINANCIAL INNOVATION AND ENVIRONMENTAL SUSTAINABILITY IN MINT COUNTRIES

Abstract This study investigates the effects of green finance and financial innovation on environmental sustainability as measured using ecological footprint in MINT countries such as Mexico, Indonesia, Nigeria, and Turkeys, from 2007 to 2021. This study makes a significant contribution to literature as it examines the effects of green financing and financial innovation in emerging economies like the MINT countries which are classified as frontier markets. In examining the environment - finance linkages, the authors employed Environmental Kuznets Curve (EKC) theory, Fixed Effect Model (FEM), co-integration test and Fully Modified OLS (FMOLS) to account for individual unique effects of the cross section and time periods within the data; and to estimate the equilibrium relationship amongst the variables in the long run. The study found that the long run estimate of green and innovative financing is significantly positive in combatting ecological challenges in MINT countries. The study strongly recommends the expansion of, and critical investments in renewable energy, increased investment in research and development in green technologies to halt environmental deterioration.