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Green finance and ecological footprints: Natural resources perspective of China’s growing economy

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  • Zhang, Shaohui
  • Chen, Kenjie

Abstract

Economies across the globe are targeting various economic and financial instruments to attain environmental sustainability. This study explores the influence of green finance on ecological footprints in the case of Chine throughout 1998Q1-2020Q4. Also, it analyze the role of renewable electricity output, natural resources, economic growth, and research and development in realizing ecological footprint. Using time series cointegration approach, the study validates the long-run equilibrium relationship between variables. Three long-run estimators have been used to attain coefficients for each variable. The results asserted that economic growth and natural resources are vital in increasing environmental pollution. However, green finance, research and development expenditure, and renewable electricity significantly reduce ecological footprints and strengthen environmental sustainability. The Granger causality test depicts the bidirectional causal connection between the variables, except for green finance. The results suggest the enhancement in green financing budget, research and development expenditure, and renewable electricity investment are imperative to ensure ecological sustainability.

Suggested Citation

  • Zhang, Shaohui & Chen, Kenjie, 2023. "Green finance and ecological footprints: Natural resources perspective of China’s growing economy," Resources Policy, Elsevier, vol. 85(PB).
    • Handle: RePEc:eee:jrpoli:v:85:y:2023:i:pb:s0301420723006098
    DOI: 10.1016/j.resourpol.2023.103898
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    2. Zhao, Dengfeng & Lin, Jingting & Bashir, Muhammad Adnan, 2024. "Analyze the effect of energy efficiency, natural resources, and the digital economy on ecological footprint in OCED countries: The mediating role of renewable energy," Resources Policy, Elsevier, vol. 95(C).
    3. Uche, Emmanuel & Das, Narasingha & Ngepah, Nicholas, 2024. "Green environments reimagined through the lens of green finance, green innovations, green taxation, and green energies. Wavelet quantile correlation and rolling window-based quantile causality perspec," Renewable Energy, Elsevier, vol. 228(C).
    4. Takyi Kwabena Nsiah & Martin Mikeskac & Beata Govurova, 2024. "On the Way to Net Zero Emissions: Can Environmental Tax be the Game Changer? The Vise Grad Group Evidence," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 311-320, September.
    5. Yupu Wang & Md. Qamruzzaman & Sylvia Kor, 2023. "Greening the Future: Harnessing ICT, Innovation, Eco-Taxes, and Clean Energy for Sustainable Ecology—Insights from Dynamic Seemingly Unrelated Regression, Continuously Updated Fully Modified, and Cont," Sustainability, MDPI, vol. 15(23), pages 1-26, November.

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