The operationalization of the dependent variable, Green Finance (PGF), as the share of renewable energy R&D in total R&D, is a significant concern. This is a narrow measure of a single input, while green finance is a broad sector encompassing green bonds, loans, and ESG investments.
Does this proxy validly represent the overall green finance sector? The findings may only reflect determinants of public R&D spending, not the wider green finance market. This potential misalignment between the construct and its measure could compromise the study’s core conclusions regarding the relationship between natural resources, education, and green finance.
Please clarify the justification for this specific variable choice.