Asymmetric and Dynamic Nexus between Gender Inequality and Green Finance

Zeinab Yadgar

Authors

Zeinab Yadgar Assistant Professor of Economics, faculty of Economics, management and social science, Shiraz University, Shiraz, Iran Corresponding author https://orcid.org/0000-0001-7339-3202

Keywords:

Green Finance, Gender Inequality, Causality, Threshold Effect

Abstract

Addressing gender inequality is not only a matter of social justice but also a fundamental prerequisite for achieving sustainable development. Despite the growing recognition of green finance as a key instrument for promoting environmental sustainability, the interaction between gender inequality and green finance has received limited scholarly attention. This study investigates the short-run, long-run, and threshold dynamics between green finance and gender inequality in OECD countries by employing Granger causality tests and a panel threshold regression (PTR) framework. The empirical findings reveal a unidirectional relationship in which gender inequality influences green finance only in the short run, whereas green finance exerts a significant impact on gender inequality exclusively in the long run. The results of the threshold regression model further indicate that gender inequality negatively affects green finance across both regimes. Conversely, green finance contributes to a reduction in gender inequality under both threshold conditions. These findings underscore the importance of reducing gender disparities and enhancing women’s economic participation as essential strategies for expanding green finance and advancing the Sustainable Development Goals. Moreover, the effective implementation and continuous monitoring of green finance policies aimed at mitigating gender inequality should be prioritized by policymakers and governments.

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