The Function of Green Finance Initiative in Maintaining Ocean Health: Novel Findings From an International Database

Abstract

This article empirically analyzes the influence of green finance (GF) on ocean health. Employing 10 indicators and a composite Ocean Health Index (OHI) to measure the efficiency and sustainability of ocean economies, the study spans 9 years across 35 countries. Multiple econometric methodologies, including Feasible Generalized Least Squares (FGLS), Panel-Corrected Standard Errors (PCSE), and the 2-step Generalized Method of Moments (GMM), demonstrate a substantial negative association between GF and ocean health. An extensive analysis of GF’s relationship to the Ocean Health Index (OHI) components indicates that GF negatively impacts each of the 6 aspects of OHI. In the long run, however, when a Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) model is used to assess the short- and long-term impacts, the results show a substantial positive association between GF and the ocean health. JEL code: J4; C12