THE INTERACTIVE AND SYNERGISTIC EFFECTS OF GREEN FINANCE AND GENDER INEQUALITY ON CARBON NEUTRALITY AND SUSTAINABLE ENVIRONMENTAL DEVELOPMENT IN EMERGING ECONOMIES: A PANEL DATA ANALYSIS

Abstract

This study investigates the interactive and synergistic effects of green finance and gender inequality on carbon neutrality and sustainable environmental development in emerging economies. The increasing global emphasis on climate change mitigation and sustainable development has highlighted the importance of green financial systems and inclusive social structures. However, limited empirical evidence exists regarding how gender inequality influences the effectiveness of green finance in achieving environmental sustainability goals. Using panel data from emerging economies covering the period 2005–2023, this study employs Fixed Effects (FE), Random Effects (RE), and System Generalized Method of Moments (GMM) estimators to examine the relationship among green finance, gender inequality, and carbon emissions. The findings indicate that green finance significantly reduces carbon emissions and promotes sustainable environmental development, while gender inequality weakens the effectiveness of green finance initiatives. Furthermore, the interaction between green finance and gender equality contributes positively to carbon neutrality. The study recommends strengthening gender-inclusive financial policies, promoting women’s participation in green economic activities, and improving institutional support for sustainable development in emerging economies.