Impact of green finance on economic development and environmental quality: a study based on provincial panel data from China
Abstract
The goal of green finance is to pursue the coordinated development of financial activities, environmental protection, and ecological balance. This study aims to examine the impact of green finance on economic development and environmental quality. Data concerning green finance, economic development, and environmental quality for 30 provinces and municipalities in China from 2010 to 2017 are used. First, the global principal component analysis is adopted to develop a green finance development index. Second, a model of the impact of green finance on economic development is constructed, which indicates that the development of green finance plays a role in promoting economic development. Next, emissions of industrial smoke (powder) dust, industrial solid waste, and carbon dioxide are used to represent the environmental variables, and a model of the impact of green finance on environmental quality is proposed. The model shows that green finance has a positive effect on environment improvement. However, the impact of green finance on environmental quality varies for different levels of economic development. Finally, based on the theory of the environmental Kuznets curve, a model of the impact of green finance on the relationship between economic development and environmental quality is developed. The model indicates that green finance can significantly improve this relationship, creating a win-win situation regarding economic development and the environment.
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It is still unclear how much green finance contributes to high-quality economic development in emerging economies.
“Although green finance has become mostprominent in emerging economies, it is still unclear how much it contributes to high-quality economic development [3].”
From Impact of green finance and fintech on sustainable economic growth: Empirical evidence from India (2023) · cites this paper as [3]
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Impact of green finance and fintech on sustainable economic growth: Empirical evidence from India
Nenavath, S., & Mishra, S. (2023) · Heliyon · doi:10.1016/j.heliyon.2023.e16301 · Cited by 137 · see citing works
“In addition to that, it also addsan essential factor of economic growththat offers a foundation for planned prosperity [6].”
BackgroundHu, H., Cohen, G., Sharma, B., Yin, H., & McConnell, R. (2022) · Annual Review of Environment and Resources · doi:10.1146/annurev-environ-112320-095157 · Cited by 62 · see citing works
- Authors
- Zhou, X., Tang, X., & Zhang, R.
- Affiliations
- University of Science and Technology Beijing (CN)
- Corresponding author
- Zhou, Xiaoguang
- Venue
- Environmental Science and Pollution Research
- Published
- 2020-03-30
- Volume
- 27
- Issue
- 16
- Pages
- 19915-19932
- ISSN
- 0944-1344 (ISSN-L)
- 1614-7499
- OpenAlex
- W3014060689
- Cited by
- 694
- References
- 72
- Citations by year
- 2026: 83 · 2025: 109 · 2024: 174 · 2023: 193 · 2022: 107 · 2021: 24 · 2020: 4
- FWCI
- 69.73
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Environmental Science and Pollution Research (publishedVersion)
- PubMed (publishedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Energy, Environment, Economic Growth
- Social Sciences › Economics, Econometrics and Finance › Finance › Sustainable Finance and Green Bonds
- Physical Sciences › Environmental Science › Management, Monitoring, Policy and Law › Sustainable Development and Policies
- Keywords
- green finance, economic development, environmental quality, environmental Kuznets curve, industrial dust emissions, industrial solid waste, CO2 emissions, provincial panel data, China
- MeSH terms
- Carbon Dioxide, China, Conservation of Natural Resources, Industry, Economic Development
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