Is financial development in China green? Evidence from city level data

Yin, Wei; Kirkulak-Uludag, Berna; Zhang, Siyu

doi:10.1016/j.jclepro.2018.11.106

Cited by 61 publications

(20 citation statements)

References 45 publications

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“…Similar findings are also confirmed by Acheampong (2019), Cetin and Bakirtas (2020), Kayani et al (2020), Le et al (2020), Shoaib et al (2020), Tamazian and Rao (2010), Wang et al (2020a), andYin et al (2019). The third strand of literature implies that no significant linkage exists between financial development and CO 2 emissions.…”

Section: Literature Reviewsupporting

confidence: 65%

“…Supporters of this view insist that financial development can not only help local government to enhance resource allocation efficiency and understand the condition of regional pollution and economic growth (Mu, 2018), but can also help enterprises promote technology innovation and adopt new low-carbon technologies, so as to increase energy efficiency and advance low-carbon economic development; therefore, CO 2 emissions will be effectively reduced (Zhang, 2011). However, some scholars oppose the arguments above (Acheampong, 2019, Boutabba, 2014, Yin et al, 2019; they believe financial development may attract foreign direct investment (FDI) that will accelerate economic growth and, thus, promote an increase in CO 2 emissions. Also, they believe prosperous and efficient financial intermediation makes it easier for consumers to buy big-ticket items with loans and, thus, emit more CO 2 emissions (Zhang, 2011).…”

Section: Introductionmentioning

confidence: 99%

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Time-varying impact of financial development on carbon emissions in G-7 countries: Evidence from the long history

Shahbaz

Destek

Dong

et al. 2021

Technological Forecasting and Social Change

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Financial development has been widely proved to be a key driver of economic growth; however, its environmental impact is still inconclusive, especially for G-7 countries (i.e. Canada, France, Germany, Italy, Japan, the United Kingdom (UK), and the United State (US)). This paper, therefore, investigates the time-varying impact of financial development on carbon dioxide (CO 2 ) emissions for G-7 countries over a long historical period. The study analyzes historical data from 1870 to 2014 for each country using bootstrap time-varying co-integration (TVC) and bootstrap rolling window estimation approaches. In addition, the polynomial trends of the estimated parameters are obtained to observe the relationship between financial development and carbon emissions. The empirical findings reveal that the impact of financial development on CO 2 emissions over a long history is M-shaped in Canada, Japan, and the US; inverted N-shaped in France, Italy, and the UK; and inverted M-shaped (W-shaped) in Germany. This empirical evidence opens new directions for policy makers to design comprehensive economic policy for using the financial sector as an economic tool to keep environmental quality at sustainable levels.

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Section: Literature Reviewsupporting

confidence: 65%

Section: Introductionmentioning

confidence: 99%

Time-varying impact of financial development on carbon emissions in G-7 countries: Evidence from the long history

Shahbaz

Destek

Dong

et al. 2021

Technological Forecasting and Social Change

View full text Add to dashboard Cite

show abstract

“…Various authors have identified the importance of financial development from the aspects of the firm, region, and macroeconomy [20,63], but its impacts on corporate sustainable development and finance have been less discussed. To the best of our knowledge, only Yin et al (2019) conjecture that financial development can enhance the performance of the environmental policy, but they do not empirically evaluate this viewpoint by utilizing a sample of enterprises [64]. Our conclusion fills this gap.…”

Section: Conclusion and Discussionmentioning

confidence: 81%

Redistribution of China’s Green Credit Policy among Environment-Friendly Manufacturing Firms of Various Sizes: Do Banks Value Small and Medium-Sized Enterprises?

Zhang

Xing

Tripe

2020

IJERPH

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According to previous studies, China’s green credit policy, which was launched in 2012, increases environment-friendly manufacturing enterprises’ loan amounts. In this paper, we focus on a redistribution mechanism among environment-friendly manufacturing firms, namely, we determine whether the effects of the green credit policy differ between small and medium-sized environment-friendly manufacturing enterprises (SMEMEs) and large environment-friendly manufacturing enterprises (LEMEs). Using a difference in difference model (DID) and a difference in difference in difference model (DDD), we find that SMEMEs obtain more loans than LEMEs due to the green credit policy. We further analyze three potential foundations of this redistribution mechanism: information asymmetry, financial development, and government environmental investment. The results demonstrate that the redistribution effect occurs in both low and high information asymmetry conditions but only in regions with satisfactory financial development and with lower government environmental investment. Our findings enrich the literature on green credit, sustainable finance, and small finance, and they provide references for enterprises, banks, and governments.

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“…Financial development in China has also been associated with positive socioeconomic outcomes focused on economic sustainability and reducing wealth inequality (Zhang et al 2015). Furthermore, financial development is expected to support so-called green developments in China's cities and sustainability initiatives (Yin et al 2019;Yuan et al 2019;Muganyi et al 2021).…”

Section: Fintech and Financial Development Nexusmentioning

confidence: 99%

Fintech, regtech, and financial development: evidence from China

et al. 2022

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This study investigates the influence of fintech on developments in China’s financial sector across 290 cities and 31 provinces between 2011 and 2018. Using a two-stage least squares instrumental variable regression approach and correcting for cross-sectional dependency, simultaneity, and endogeneity of regressors, the results establish a positive link between fintech and financial development. Our findings show that fintech supports financial sector development by enhancing access (loans), depth (deposits), and savings within China’s financial institutions. We also show that the emergence of fintech in the area of financial regulation (regulatory technology: regtech) can significantly improve financial development outcomes. Therefore, it is imperative for regulators to pursue policies that balance growth in the fintech sector while mitigating the associated risks. In addition, we use the difference-in-differences approach to show that policy measures such as interest rates liberalization also positively impacted financial development during the analysis period. In our conclusion, we suggest a policy framework for balanced fintech sector growth in developing countries.

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Is financial development in China green? Evidence from city level data

Cited by 61 publications

References 45 publications

Time-varying impact of financial development on carbon emissions in G-7 countries: Evidence from the long history

Time-varying impact of financial development on carbon emissions in G-7 countries: Evidence from the long history

Redistribution of China’s Green Credit Policy among Environment-Friendly Manufacturing Firms of Various Sizes: Do Banks Value Small and Medium-Sized Enterprises?

Fintech, regtech, and financial development: evidence from China

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