Author(s): Vo Thi Van Khanh
In the background of economic development nowadays, the use of renewable energy sources has greatly considered as the need in most countries towards an environmentally friendly and sustainable development goal, as well as healthy financial markets. The aims of this study investigate the impact of renewable energy, and human capital on financial development. Using 26 Asian countries between 1980 and 2019 and advanced econometrics analysis such as pooled ordinary least squares, fixed effects methods, random effects methods, and feasible generalized least squares, reseach results show that using renewable energy has a negative and significant impact on financial development, that is, 1% change in renewable energy use will result in 0.688% change in financial development. Further, the study confirms that the higher level of human resources has a positive impact on financial development, while the financial markets of East Asian and South Asian countries are considered to be more developed than the rest of Asia.