IDEAS home Printed from https://ideas.repec.org/a/bpj/econoa/v18y2024i1p14n1026.html
   My bibliography  Save this article

Green Finance, Environmental Regulations, and Green Technologies in China: Implications for Achieving Green Economic Recovery

Author

Listed:
  • Lou Chao

    (School of Law, Tianjin University of Commerce, Tianjin, 300134, China)

Abstract

In the framework of foreign direct investments (FDI) and green finance (GF), environmental regulations (ERs) and green technologies have influenced China’s green economic recovery between 2000 and 2020. The idea is to conduct an empirical investigation of the main drivers behind China’s green economic revival. Second-generation panel cointegration techniques were adopted for the analysis. The relationship among ERs, green technological investment, GF, and green economic recovery is supported by the long-run cointegration results. In this context, some of the most important measures include ER, GF, and increased investment in environmentally friendly technologies. The estimated results demonstrate a positive contribution towards the green economic recovery from GF, the development of green technologies, and ERs. Evidence suggests that green economic recovery is inversely associated with FDI. The establishment of an environmentally sustainable economy can be rendered by policy implications to continue advocating for the green shift in financial institutions along with enforcing the appropriate regulations and laws.

Suggested Citation

  • Lou Chao, 2024. "Green Finance, Environmental Regulations, and Green Technologies in China: Implications for Achieving Green Economic Recovery," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-14.
    • Handle: RePEc:bpj:econoa:v:18:y:2024:i:1:p:14:n:1026
    DOI: 10.1515/econ-2022-0106
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/econ-2022-0106
    Download Restriction: no
    File URL: https://libkey.io/10.1515/econ-2022-0106?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Peng, Benhong & Chen, Hong & Elahi, Ehsan & Wei, Guo, 2020. "Study on the spatial differentiation of environmental governance performance of Yangtze river urban agglomeration in Jiangsu province of China," Land Use Policy, Elsevier, vol. 99(C).
    2. Zhou, Qian & Zhong, Shihu & Shi, Tao & Zhang, Xiaoling, 2021. "Environmental regulation and haze pollution: Neighbor-companion or neighbor-beggar?," Energy Policy, Elsevier, vol. 151(C).
    3. Joakim Westerlund & David L. Edgerton, 2008. "A Simple Test for Cointegration in Dependent Panels with Structural Breaks," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(5), pages 665-704, October.
    4. Abay Mulatu, 2017. "The Structure of UK Outbound FDI and Environmental Regulation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(1), pages 65-96, September.
    5. Pan, Dan & Chen, Huan, 2021. "Border pollution reduction in China: The role of livestock environmental regulations," China Economic Review, Elsevier, vol. 69(C).
    6. Hsu, Ching-Chi & Ngo, Quang-Thanh & Chien, FengSheng & Li, Li & Mohsin, Muhammad, 2021. "Evaluating green innovation and performance of financial development: mediating concerns of environmental regulation," MPRA Paper 109671, University Library of Munich, Germany.
    7. Zhang, Yixiang & Xiong, Yali & Li, Feng & Cheng, Jinhua & Yue, Xiaochen, 2020. "Environmental regulation, capital output and energy efficiency in China: An empirical research based on integrated energy prices," Energy Policy, Elsevier, vol. 146(C).
    8. Xie, Li & Li, Zexin & Ye, Xiuhua & Jiang, Yanru, 2021. "Environmental regulation and energy investment structure: Empirical evidence from China's power industry," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    9. Duan, Yuwan & Ji, Ting & Lu, Yi & Wang, Siying, 2021. "Environmental regulations and international trade: A quantitative economic analysis of world pollution emissions," Journal of Public Economics, Elsevier, vol. 203(C).
    10. Muhammad Farhan Bashir & Benjiang MA & Muhammad Adnan Bashir & Magdalena Radulescu & Umer Shahzad, 2022. "Investigating the role of environmental taxes and regulations for renewable energy consumption: evidence from developed economies," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 1262-1284, December.
    11. Guo, Ran & Yuan, Yijun, 2020. "Different types of environmental regulations and heterogeneous influence on energy efficiency in the industrial sector: Evidence from Chinese provincial data," Energy Policy, Elsevier, vol. 145(C).
    12. Ouyang, Xiaoling & Fang, Xingming & Cao, Yan & Sun, Chuanwang, 2020. "Factors behind CO2 emission reduction in Chinese heavy industries: Do environmental regulations matter?," Energy Policy, Elsevier, vol. 145(C).
    13. Zhao, Xin & Mahendru, Mandeep & Ma, Xiaowei & Rao, Amar & Shang, Yuping, 2022. "Impacts of environmental regulations on green economic growth in China: New guidelines regarding renewable energy and energy efficiency," Renewable Energy, Elsevier, vol. 187(C), pages 728-742.
    14. Syed Abdul Rehman Khan & Pablo Ponce & George Thomas & Zhang Yu & Mohammad Saad Al-Ahmadi & Muhammad Tanveer, 2021. "Digital Technologies, Circular Economy Practices and Environmental Policies in the Era of COVID-19," Sustainability, MDPI, vol. 13(22), pages 1-14, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xingwei Li & Jiachi Dai & Xiaowen Zhu & Jinrong He & Jingru Li & Xiang Liu & Yicheng Huang & Qiong Shen, 2022. "What Is the Mechanism of Government Green Development Behavior Considering Multi-Agent Interaction? A Meta-Analysis," IJERPH, MDPI, vol. 19(14), pages 1-16, July.
    2. Bu, Caiqi & Zhang, Kaixia & Shi, Daqian & Wang, Shuyu, 2022. "Does environmental information disclosure improve energy efficiency?," Energy Policy, Elsevier, vol. 164(C).
    3. Liu, Duan & Yu, Nizhou & Wan, Hong, 2022. "Does water rights trading affect corporate investment? The role of resource allocation and risk mitigation channels," Economic Modelling, Elsevier, vol. 117(C).
    4. Xu, Hao & Xu, Jingxuan & Wang, Jie & Hou, Xiang, 2023. "Reduce production or increase efficiency? Hazardous air pollutants regulation, energy use, and the synergistic effect on industrial enterprises' carbon emission," Energy Economics, Elsevier, vol. 126(C).
    5. Yunzhao, Lu, 2022. "Modelling the role of eco innovation, renewable energy, and environmental taxes in carbon emissions reduction in E−7 economies: Evidence from advance panel estimations," Renewable Energy, Elsevier, vol. 190(C), pages 309-318.
    6. Hailiang, Zeng & Chau, Ka Yin & Waqas, Muhammad, 2023. "Does green finance and renewable energy promote tourism for sustainable development: Empirical evidence from China," Renewable Energy, Elsevier, vol. 207(C), pages 660-671.
    7. Golmohamadi, Hessam, 2022. "Demand-side management in industrial sector: A review of heavy industries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    8. Liu, Xiaoguang & Ji, Qiang & Yu, Jian, 2021. "Sustainable development goals and firm carbon emissions: Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 103(C).
    9. Du, Kerui & Cheng, Yuanyuan & Yao, Xin, 2021. "Environmental regulation, green technology innovation, and industrial structure upgrading: The road to the green transformation of Chinese cities," Energy Economics, Elsevier, vol. 98(C).
    10. Kai Hu & Dandan Li & Daqian Shi & Wenli Xu, 2023. "Environmental regulation and energy efficiency: evidence from daily penalty policy in China," Journal of Regulatory Economics, Springer, vol. 63(1), pages 1-29, April.
    11. Zhuo, Chengfeng & Xie, Yuping & Mao, Yanhua & Chen, Pengqin & Li, Yiqiao, 2022. "Can cross-regional environmental protection promote urban green development: Zero-sum game or win-win choice?," Energy Economics, Elsevier, vol. 106(C).
    12. Di, Danyang & Li, Guoxiang & Shen, Zhiyang & Song, Malin & Vardanyan, Michael, 2023. "Environmental credit constraints and pollution reduction: Evidence from China's blacklisting system for environmental fraud," Ecological Economics, Elsevier, vol. 210(C).
    13. Cao, Hongjian & Wang, Bizhe & Li, Ke, 2021. "Regulatory policy and misallocation: A new perspective based on the productivity effect of cleaner production standards in China's energy firms," Energy Policy, Elsevier, vol. 152(C).
    14. Zhong Wang & Mingyu Wu & Shixiang Li & Changji Wang, 2021. "The Effect Evaluation of China’s Energy-Consuming Right Trading Policy: Empirical Analysis Based on PSM-DID," Sustainability, MDPI, vol. 13(21), pages 1-16, October.
    15. Alsagr, Naif, 2023. "How environmental policy stringency affects renewable energy investment? Implications for green investment horizons," Utilities Policy, Elsevier, vol. 83(C).
    16. Fengting Wang & Hao Wang & Cong Liu & Lichun Xiong & Zhiquan Qian, 2022. "The Effect of Green Urbanization on Forestry Green Total Factor Productivity in China: Analysis from a Carbon Neutral Perspective," Land, MDPI, vol. 11(11), pages 1-21, October.
    17. Zheng, Lei & Hao, Jia & Ban, Nannan, 2023. "Do recycling and regulations influence trade-adjusted resource consumption? Exploring the role of renewable energy," Resources Policy, Elsevier, vol. 81(C).
    18. Chishti, Muhammad Zubair & Patel, Ritesh, 2023. "Breaking the climate deadlock: Leveraging the effects of natural resources on climate technologies to achieve COP26 targets," Resources Policy, Elsevier, vol. 82(C).
    19. Lyu, Chaofeng & Xie, Zhe & Li, Zhi, 2022. "Market supervision, innovation offsets and energy efficiency: Evidence from environmental pollution liability insurance in China," Energy Policy, Elsevier, vol. 171(C).
    20. He, Hairong, 2024. "Nexus of natural resources exploitation, social protection, and sustainable environment: COP27 is a sufficient solution?," Resources Policy, Elsevier, vol. 96(C).

    More about this item

    Keywords

    green finance; environmental regulation; green economic recovery; green technology; foreign direct investment;
    All these keywords.

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:econoa:v:18:y:2024:i:1:p:14:n:1026. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.