Politická ekonomie 2025, 74(5)  | DOI: 10.18267/j.polek.1518

How Do Digital Government and Digital Finance Promote Green Investment?

Ilhan Ozturk, Sana Ullah
Ilhan Ozturk, College of Business Administration, University of Sharjah, Sharjah, United Arab Emirates; Faculty of Economics, Administrative and Social Sciences, Nisantasi University, Istanbul, Turkey; VIZJA University, Warsaw, Poland
Sana Ullah (corresponding), Faculty of Economics and Administrative Sciences, Near East University, Nicosia, Northern Cyprus, Turkey; VIZJA University, Warsaw, Poland; Advanced Research Centre, European University of Lefke, Lefke, Northern Cyprus, Turkey

In order to tackle climate change and global warming, policymakers all around the globe have stressed fostering investment in green initiatives and projects. Particularly in top polluted economies, the importance of green investment has recently increased manifold. Thus, researchers have focused on finding the determinants of green investment. This analysis aims to scrutinize the nexus between digital government, digital financial inclusion and green investment in top polluted economies by employing two-stage least squares (2SLS), generalized method of moments (GMM) and smoothed instrumental quantile regression (SIVQR) methods. In addition to analysing an aggregate sample of top polluted economies, we perform a regional analysis by disaggregating the data. The findings reveal that digital financial inclusion boosts green investment in the full sample, Asia, America, Europe and Africa, while digital government promotes green investment in all the regions except Africa. The control variables of GDP, carbon emissions, foreign direct investment and human capital foster green investment in top polluted economies, while trade reduces green investment in these economies. On the policy front, an integrated approach with a central focus on digital governance and financial inclusion is required to boost green investment.

Keywords: Digital government, green investment, digital finance
JEL classification: H11, O13, O16, P45

Received: December 31, 2024; Revised: May 17, 2025; Accepted: June 9, 2025; Prepublished online: December 16, 2025; Published: October 23, 2026  Show citation

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Ozturk, I., & Ullah, S. (2026). How Do Digital Government and Digital Finance Promote Green Investment? Politická ekonomie, 74(5), 895-915. doi: 10.18267/j.polek.1518
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