Navigating a sustainable transition: green digital finance in manufacturing

In recent decades, the concept of achieving a sustainable transition has sparked debate within the field of economics. This research thoroughly investigates the complex interplay between digital green finance and sustainability in the manufacturing sector across 15 East Asian nations from 2010 to 2020, utilizing the PMG (pooled mean group) panel estimation method. The results consistently demonstrate a positive and persistent impact of digital green finance on manufacturing sustainability, both in the short and long-run. Moreover, the study emphasizes the vital roles of technological advancement, measured by patent applications, and indicators of human development in advancing sustainability. Surprisingly, the penetration of information and communication technology (ICT) presents a counterproductive effect, potentially due to heightened energy consumption and increased generation of electronic waste. To advocate for sustainable manufacturing, policymakers are urged to prioritize the deliberate growth of the digital green finance market, enact a comprehensive green ICT policy framework, expand educational initiatives focusing on sustainability, and address regional disparities in healthcare, education, and income levels.