DETERMINING THE ROLE OF GREEN LOGISTICS AND GREEN FINANCE TO ACHIEVE CARBON NEUTRALITY

Abstract

Background: Significant global efforts are underway to address environmental challenges and ensure sustainable growth. In particular, European Union (EU) countries have set policies to reduce net emissions by 55% by 2030. However, the impact of economic and social factors on environmental sustainability remains uncertain. Integrating green logistics and green finance practices into policies is considered a critical strategy for balancing economic growth with environmental impact. This study aims to explore the role of green logistics and green finance in achieving carbon neutrality goals in EU countries. Methods: This study investigates the effects of green logistics, green finance, economic growth, and financial development on carbon dioxide emissions in 26 EU countries (Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovakia, Spain, Sweden) from 2014 to 2021. The impact is assessed using the Estimated Generalized Least Squares (EGLS) method, based on preliminary test results. Results: The findings show that economic growth and financial development contribute to increased CO2 emissions, while green logistics and green finance practices help reduce CO2 emissions. The results underscore the importance of integrating green logistics and green finance into policy frameworks aimed at environmental sustainability. Conclusions: The findings suggest that promoting environmentally friendly logistics practices, investing in technological infrastructure, and supporting financial instruments such as green bonds can play a crucial role in reducing environmental damage and fostering sustainable growth. Green logistics and green finance practices can serve as powerful policy tools to mitigate the environmental impacts of economic activities and promote long-term sustainable development. Additionally, focusing on green technologies and renewable energy investments, while considering the technical and structural impacts of financial development and economic growth, is crucial for achieving carbon neutrality targets in EU countries.