Role of green finance in resource efficiency and green economic growth

Xu, Jiaqi; She, Shengxiang; Gao, Pengpeng; Sun, Yunpeng

doi:10.1016/j.resourpol.2023.103349

Cited by 66 publications

(20 citation statements)

References 37 publications

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“…Green finance, based on the Green Industry Guidance Catalogue, brings the pollution behaviors of market players under the remit of credit management. Therefore, green finance can be regarded as an environmental regulation mechanism that uses credit management and environmental information ratings to encourage enterprises to focus on front-end prevention and control, rather than end-stage emission reduction [103]. Therefore, it is reasonable to believe that environmental regulation in the pilot zone is now stronger, and the green orientation of the credit funds is more obvious.…”

Section: Environmental Regulationmentioning

confidence: 99%

Digital Financial Inclusion, Land Transfer, and Agricultural Green Total Factor Productivity

2023

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Improving agricultural green total factor productivity is important for achieving high-quality economic development and the SDGs. Digital inclusive finance, which combines the advantages of digital technology and inclusive finance, represents a new scheme that can ease credit constraints and information ambiguity in agricultural production. First, this study focused on agro-ecological functions; we incorporated total agricultural carbon sequestration and emissions extraction into the evaluation system and used the mixed-direction-distance function to calculate agricultural green total factor productivity. Then, based on panel data from 31 provinces in China collected from 2011 to 2021, we used the two-way fixed effect model, the interactive fixed effect, and the plausibly exogenous variable method to test the impact of digital financial inclusion on agricultural green total factor productivity, and its mechanism of action. The panel-corrected standard error and fixed effect Driscoll–Kraay methods were used to account for the unobserved heterogeneity and cross-section dependence in the panel data. The results showed that digital financial inclusion can significantly improve agricultural green total factor productivity. This conclusion remained valid following robustness tests using the spatial econometric model and the method of changing explanatory variables. Digital financial inclusion can improve agricultural green total factor productivity by facilitating the transfer of agricultural land. Sound digital infrastructure and strict green credit policies enhance the role of digital inclusive finance in promoting the green development of agriculture. These conclusions could help the financial sector to formulate flexible, accurate, reasonable, and appropriate financial policies and products that would support agriculture, and enhance the role of digital inclusive finance in promoting sustainable agricultural development.

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Section: Environmental Regulationmentioning

confidence: 99%

Digital Financial Inclusion, Land Transfer, and Agricultural Green Total Factor Productivity

2023

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“…Technological innovation advancements significantly stem financial inclusion and financial development to eradicate environmental degradation (Brahmi et al, 2023;Fakher & Ahmed, 2023;Xie et al, 2023). Besides, financial inclusion is one of the key drivers of energy efficiency and renewable energy consumption (Khan, Haouas, et al, 2023;Liu et al, 2022;Zheng et al, 2023), whereas green financial development substantially improves the level of green energy adoption, enhance research and development, encourage green agriculture (Lee et al, 2023;Xu et al, 2023). As a result, Hawash et al (2022) claimed that a higher level of financial inclusion and foreign direct investment significantly leads to sustainable economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

Drivers of Sustainable Green Finance: Country’s Level Risk and Trade Perspective for OECD Countries

Wang,

Destek,

Weimei

et al. 2023

The Journal of Environment & Development

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In contemporary times, developed economies are adopting environmentally friendly initiatives such as green finance and energy efficiency. However, the factors affecting energy efficiency are widely explored, and green finance remains overlooked in the empirical literature. The present research examines the drivers of sustainable green finance in OECD economies during 2004–2021. The study uses several panel diagnostic tests and validates the mixed integration order of the variables. Still, the long-run equilibrium relationship is valid between financial inclusion, energy efficiency, human capital, foreign trade, composite risk, and green finance. Using panel autoregressive distributed lag model, the study found that financial inclusion, energy efficiency, foreign trade, and composite risk significantly improve green finance in the long run. However, only energy efficiency is effective in the short run. On the other hand, human capital exhibits a significant adverse influence on green finance. The long-run results are robust due to the significant estimates offered by panel dynamic ordinary least square. Besides, there exist one-way and two-way causal associations between variables. The study recommends improving the financial sector performance to enhance financial inclusivity, increase investment in the energy efficiency sector, and encourage trade in environmentally friendly initiatives.

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“…Gu et al (2023) find that green finance efforts reduce carbon emissions in G7 countries. Xu et al (2023) emphasize that green finance can promote GG by contributing to resource efficiency. Tan et al (2023) analyze green economic growth in COP26.…”

Section: Macroeconomic and Financial Green Growth Studiesmentioning

confidence: 99%

Macroeconomic and financial determinants of green growth: an empirical investigation on BRICS-T countries

Arzova,

Şahin

2023

MEQ

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PurposeThe purposes of this study are to contribute to the limited green growth (GG) literature in emerging markets, to analyze GG from a financial economy perspective and to determine the contribution of financial development and innovation to GG in Brazil, Russian Federation, India, China and South Africa and Türkiye (BRICS-T). BRICS-T countries significantly impact the world population, international politics, energy resources and economy. In addition, BRICS-T countries are one of the leading countries in the world with their sustainability efforts. Investigating the GG model in these countries may contribute to structuring emerging economies around the principles of GG and advancing global green transformation efforts.Design/methodology/approachThe authors applied panel data analysis from 2001 to 2019. GG is economic growth free from environmental depletion in the model. National income, personnel expenditure and foreign direct investments are macroeconomic variables. These variables measure economic development and promote economic and social progress, which is essential for GG. Capital accumulation and innovation are essential tools in GG transformation. Therefore, financial development and patent applications represent the moderating variables. The authors estimate the fixed effect model with Parks-Kmenta robust.FindingsEmpirical results show that national income growth and foreign direct investments positively affect GG. Personnel expenditure negatively affects GG. On the contrary, financial development and patent growth have little moderating role.Originality/valueThis study contributes to the literature on creating a GG model in emerging countries. The study is original in its model and sample.

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Role of green finance in resource efficiency and green economic growth

Cited by 66 publications

References 37 publications

Digital Financial Inclusion, Land Transfer, and Agricultural Green Total Factor Productivity

Digital Financial Inclusion, Land Transfer, and Agricultural Green Total Factor Productivity

Drivers of Sustainable Green Finance: Country’s Level Risk and Trade Perspective for OECD Countries

Macroeconomic and financial determinants of green growth: an empirical investigation on BRICS-T countries

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