Green finance, renewable energy development, and climate change: evidence from regions of China

Abstract

In this study, using data from 2010 to 2021, and by utilizing the stochastic impacts by regression on population, affluence, and technology (STIRPAT) theory, and system generalized method of moments, the effect of green financing and deployment of renewable energy on carbon dioxide emissions in China and its provinces were analyzed. The results show that green financing reduces environmental pollution at the country level. Moreover, with a 1% increase in renewable energy consumption, carbon dioxide emission can be expected to decrease by 0.103%. It also demonstrates that green financing has a statistically significant coefficient only in provinces located in the eastern and western regions. Chinese policymakers should incentive policies for provinces in the eastern region of China in order to have a cleaner environment. The central region should be under supportive and pressure policies to move faster along the path to sustainable development.

Has American Policy Encouraged China to Become a Responsible Stakeholder-Or the Reverse?

“…In April 2019, Beijing promoted the Belt and Road Initiative International Green Development Coalition, its first regional sustainable plan. In 2020, Beijing announced goals of peaking carbon by 2030 and achieving carbon neutrality by 2060 [26]. Despite being the largest producer of carbon emissions, China is collaborating with the international community to address climate change challenges.…”

Insight into energy production and consumption, carbon emissions and agricultural residues resources available for energy and environmental benefits in China

“…The development of renewable energy can resolve the above challenges in China simultaneously. In the past decade, China's renewable energy has made some remarkable progresses, which have promoted China's green development and made some contributions to the global ght against climate change [34]. In 2006, China started to implement the Renewable Energy Law, which laid out the general conditions for renewable energy to become a more important energy source in China.…”

Greening the Future: Harnessing ICT, Innovation, Eco-Taxes, and Clean Energy for Sustainable Ecology—Insights from Dynamic Seemingly Unrelated Regression, Continuously Updated Fully Modified, and Continuously Updated Bias-Corrected Models

“…The multidimensional process under consideration encompasses the strategic allocation of resources towards energy research and development (R&D), the facilitation of patent grants pertaining to environmental innovations, and the adoption of RE sources. The successful execution of a holistic approach holds promise for mitigating environmental harm through the utilization of advanced technologies aimed at diminishing reliance on finite energy resources [54,55]. Furthermore, the continuous development of innovative storage and transportation technologies holds promising prospects for enhancing the utilization of RE sources.…”

“…However, the introduction of green finance has a contributory role in mitigating environmental adversity with the reduction of conventional energy through the inclusion of clean energy in the energy mix. Thus, green financing has a positive influence on environmental sustainability by contracting CO 2 emissions [23,54,55,[60][61][62][63][64]. In the study of Numan, Ma, Sadiq, Bedru, and Jiang [23], utilizing panel data, it was established that ecological degradation could be managed through innovation in the financial and technological context.…”

“…By shifting towards renewable energy, we can mitigate these negative impacts and promote a cleaner and healthier ecosystem [81]. Clean energy sources, such as RE technologies, have been found to exhibit minimal to negligible levels of air and water pollution, thereby making significant contributions towards mitigating the ecological impact typically associated with these pollutants [55,82].…”