Does financial globalization promote renewable energy investment? Empirical insights from China.

The increasing integration of financial markets worldwide has brought about significant changes in the investment landscape for renewable energy. However, the connection between financial globalization and renewable energy investment has gotten relatively little consideration. As a result, the analysis's main goal is to determine the asymmetric nexus between financial globalization and renewable energy investment in China, covering the period from 1995 to 2021. The influence of financial globalization on investments in renewable energy has been calculated using the linear and non-linear ARDL frameworks. Both methods analyze the short-run and long-run relationships between financial globalization and renewable energy investment. The linear model highlights the favorable influence of financial globalization on renewable energy investment in the short and long run. On the other side, the non-linear model implies that a rise in financial globalization increases investment in renewable energy in the short and long run, and the fall in financial globalization cause the renewable energy investment to fall only in the long run. In addition, national income help promote renewable energy investment in both the short and long run in linear and non-linear models. Therefore, encouraging international cooperation to develop renewable energy projects through public-private partnerships can increase investment flows and provide greater access to financing.