Do financial innovation and renewable energy matter for environmental quality in India?

Unlike previous studies in the environment-finance-energy linkage, to analyze the causal and long-run effects of renewable energy and financial innovation on the quality of the environment in India while taking into account GDP and primary energy consumption, this research employs Fourier base approaches, namely Fourier augmented Dickey–Fuller (F-ADF) unit root test, Fourier autoregressive distributive lag (F-ADL) cointegration test, Fourier autoregressive distributed lag (F-ARDL) cointegration test, and Fourier Toda Yamamoto (F-TY) causality test. The outcomes of the present study reveal that (i) financial innovation and renewable energy consumption cause to decrease in environmental degradation in India; (ii) GDP and primary energy consumption increase (and cause) environmental degradation.