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Role of green finance in resource efficiency and green economic growth

Author

Listed:
  • Xu, Jiaqi
  • She, Shengxiang
  • Gao, Pengpeng
  • Sun, Yunpeng

Abstract

The issue of resource efficiency and achieving green economic growth has become a controversial issue in recent years. This research has studied the green financing tool as a reliable and effective solution to achieve green economic growth and increase resource efficiency. Using the method of Panel Vector Autoregressive (PVAR), the relationships between green bonds, resource efficiency index, and green economic growth rates in the industrial and agricultural sectors in 29 countries with green financing markets during 2015–2021 were analyzed. The major results confirmed that issuing green bonds and green economic growth in the industry could accelerate agriculture's green economic growth rate. At the same time, resource efficiency has not significantly impacted the green economic growth rate in the agriculture sector. In addition, the feedback hypothesis exists in the relationship between issued green bonds and green economic growth in industry and agriculture. The main recommended policy implications are strengthening and reforming the financial sector, redefining resource efficiency indicators in countries, and developing of digital green financing market.

Suggested Citation

  • Xu, Jiaqi & She, Shengxiang & Gao, Pengpeng & Sun, Yunpeng, 2023. "Role of green finance in resource efficiency and green economic growth," Resources Policy, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:jrpoli:v:81:y:2023:i:c:s0301420723000570
    DOI: 10.1016/j.resourpol.2023.103349
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    More about this item

    Keywords

    Green finance; Resource efficiency; Green economic growth; Panel VAR;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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