Financial openness, terrestrial and marine habitat sustainability towards green and blue economy: the moderating role of net zero target

Abstract

This study examines the impacts of financial openness on terrestrial and marine sustainability with the moderating role of net zero targets in 194 countries during the period from 2013 to 2022. Terrestrial sustainability calculated as forest area and marine sustainability calculated as total fishers production are dependent variables; financial openness calculated as de-facto is an independent variable; inflation, economic growth, foreign direct investment, energy consumption and urbanization are control variables. By using GMM estimator, our research found that financial openness would exert a positive impact on both terrestrial and marine sustainability. Moreover, it is discovered that while net zero target positively moderates the influence of financial openness on terrestrial sustainability, a statistical insignificance is seen from marine sustainability. These findings are expected to contribute to the enhancement of financial openness so that terrestrial and marine sustainability are improved. In addition, net zero target is proven to be a crucial factor in environmental sustainability.