The impact of financial development and green technological innovation on environmental quality

Financial development is an indicator of the diversity of instruments used in a country's financial market and the development of the financial system. Green technological innovation is the process of applying and developing environmentally friendly technologies. These technologies provide sustainable development by offering innovative methods for solving environmental problems. In this thesis, the relationship between financial development and green technological innovation variables and environmental quality is analyzed. Empirical analysis evaluated the effects of financial development and green technological innovation on environmental quality. The aim of this thesis is to empirically evaluate the effects of financial development and green technological innovations on environmental quality. Firstly, a financial development index was constructed for selected countries using Principal Component Analysis (PCA). Then, as a result of the analysis using the System Generalized Method of Moments (GMM), it was found that financial development and green technological innovation have significant and significant effects on environmental quality.