THE STRUCTURAL MECHANISM AND DYNAMICS OF GREEN FINANCE

This research carefully examines the structural mechanism and dynamics of green finance. Green finance plays a predominant role in enhancing economic growth of a country. Green Finance consists of all the varied forms, types, as well as kinds of investment or lending that put into consideration the environment, how to protect the environment, the impact of the industries as well as the businesses on the environment, and how to enhance environmental sustainability. Green finance has to do with investment that considers environment first—an investment that will promote and protect the environment. A predominant aspect of green finance is sustainable investment and banking.

The objective of the study is to examine the influence of Green Finance on Nigerian economic growth and to ascertain the relationship between renewable energy consumption and Nigerian economic growth. The least squares estimation will be used for data analysis. It was observed that green finance plays an important role in economic growth; green finance plays a role in sustainable investment; green finance protects the environment. From the findings of the study, green finance encourages economic growth, green finance encourages environmentally friendly investment, and green finance is about sustainable investment that preserves the environment.

In conclusion, we can say green finance preserves the environment and this encourages economic growth. It is recommended that government should encourage green finance—that is, environmental investment that preserves the environment. The environment should be considered before investment.