IMPACT OF GREEN FINANCING ON SUSTAINABLE CITIES AND COMMUNITIES (SDG 11): MODERATING ROLE OF FINANCIAL LITERACY

Abstract

Green financing is now a key tool to focus capital on sustainable development and in particular to meet Sustainable Development Goal 11 (Sustainable Cities and Communities). Nevertheless, the contribution of the financial literacy of people to the reinforcement of this relationship is not fully investigated. This paper focuses on exploring how green financing influences SDG 11 and evaluates the moderating effect of financial literacy in the association. It used a cross-sectional survey design and a positivist philosophy and a deductive approach. A total of 274 Habib Bank Limited (HBL) workers in Khyber Pakhtunkhwa, Pakistan, were sampled and a structured questionnaire was utilized to gather the data that were analyzed with the help of regression and moderation analysis in SPSS. The findings reveal that there is a strong positive correlation between the green financing and sustainable cities and communities ( =.413, p < .001). Financial literacy, however, did not show that it had a significant moderating effect on this relationship (interaction term p = .6372). The results support the essential direct influence of green financing on facilitating the sustainability of urban areas and indicate that among a professionally financially literate population, financial literacy might not be a limiting condition that can change this primary association. The paper has not only added to the sustainability finance literature by empirically confirming the direct relationship between green financing and SDG 11 in a developing setting but also provides subtle details that can guide policymakers intending to use financial instruments as a tool in ensuring urban sustainability. 

Keywords: Green Financing, Sustainable Cities and Communities, SDG 11, Financial Literacy, Moderation Analysis, Sustainable Development.