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Cleaner Production: Analysis of the Role and Path of Green Finance in Controlling Agricultural Nonpoint Source Pollution

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  • Shen Yang

    (Center for Quantitative Economic Research, Huaqiao University, Xiamen, 361021, China)

  • Zhang Xiuwu

    (Center for Quantitative Economic Research, Huaqiao University, Xiamen, 361021, China)

Abstract

This study evaluates the impact of green finance (GF) on agricultural nonpoint source pollution (ANPSP) control and emission reduction in 30 Chinese provinces from 2005 to 2021. Utilizing the entropy value method and the unit survey inventory method, the research measures the levels of GF development and ANPSP. It employs a mediation effect model to empirically assess the pollution control efficacy of GF and to elucidate the mechanisms underlying its influence. The findings indicate that GF development significantly curtails ANPSP emissions. It achieves this through government environmental regulation (ER) and land transfer mechanisms. Heterogeneity test results show that GF has a stronger impact on ANPSP in regions with lower economic development level and GF reform policies. Therefore, the study suggests strengthening the GF infrastructure in rural areas, aligning GF policies with ER, promoting large-scale land operations, and implementing tailored strategies for regions with different levels of economic development and GF reform policies.

Suggested Citation

  • Shen Yang & Zhang Xiuwu, 2024. "Cleaner Production: Analysis of the Role and Path of Green Finance in Controlling Agricultural Nonpoint Source Pollution," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-13.
    • Handle: RePEc:bpj:econoa:v:18:y:2024:i:1:p:13:n:1001
    DOI: 10.1515/econ-2022-0118
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    References listed on IDEAS

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    More about this item

    Keywords

    green finance; ANPSP; government environmental regulation; land transfer; mediation effect; entropy evaluation method;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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