IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v86y2023ipas0301420723009303.html
   My bibliography  Save this article

Role of green finance and investment in sustainable resource development in China

Author

Listed:
  • Yang, Xiaoyun

Abstract

This research employs the Autoregressive Distributed Lag (ARDL) method to evaluate the effects of the size of the green finance market on the generation of wind power, solar power, and hydropower in China from 1990 to 2021. The empirical findings indicate that a 1% increase in the size of the green finance market is associated with a nearly 0.47% increase in wind power generation, a 0.36% increase in solar power generation, and a 0.15% increase in hydropower generation in China. Several control variables, including the Consumer Price Index (CPI), exhibit a negative impact on renewable energy sources in the short term, while China's Gross Domestic Product (GDP), small and medium-sized enterprises (SMEs), and foreign direct investment (FDI) have positive effects. In the long run, the size of the green finance market remains crucial for the development of renewable energy, with wind power demonstrating a more significant influence. To promote green finance and sustainable energy in China, practical policies could involve the digitalization of green finance markets, the establishment of sustainable education programs to enhance public awareness of green initiatives, the improvement of regulations governing green FDI, and the utilization of technologies such as big data, artificial intelligence (AI), and financial technology (fintech) to enhance green investments.

Suggested Citation

  • Yang, Xiaoyun, 2023. "Role of green finance and investment in sustainable resource development in China," Resources Policy, Elsevier, vol. 86(PA).
    • Handle: RePEc:eee:jrpoli:v:86:y:2023:i:pa:s0301420723009303
    DOI: 10.1016/j.resourpol.2023.104219
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420723009303
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2023.104219?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Al Mamun, Md & Boubaker, Sabri & Nguyen, Duc Khuong, 2022. "Green finance and decarbonization: Evidence from around the world," Finance Research Letters, Elsevier, vol. 46(PB).
    2. Abbas, Jawad & Wang, Lisu & Ben Belgacem, Samira & Pawar, Puja Sunil & Najam, Hina & Abbas, Jaffar, 2023. "Investment in renewable energy and electricity output: Role of green finance, environmental tax, and geopolitical risk: Empirical evidence from China," Energy, Elsevier, vol. 269(C).
    3. Lee, Chien-Chiang & Wang, Fuhao & Chang, Yu-Fang, 2023. "Does green finance promote renewable energy? Evidence from China," Resources Policy, Elsevier, vol. 82(C).
    4. Liu, Hui & Zhu, Qirong & Muhammad Khoso, Wali & Khalique Khoso, Abdul, 2023. "Spatial pattern and the development of green finance trends in China," Renewable Energy, Elsevier, vol. 211(C), pages 370-378.
    5. Sun, Gebing & Li, Guozhi & Dilanchiev, Azer & Kazimova, Asli, 2023. "Promotion of green financing: Role of renewable energy and energy transition in China," Renewable Energy, Elsevier, vol. 210(C), pages 769-775.
    6. Ye, Xiang & Rasoulinezhad, Ehsan, 2023. "Assessment of impacts of green bonds on renewable energy utilization efficiency," Renewable Energy, Elsevier, vol. 202(C), pages 626-633.
    7. Shome, Samik & Hassan, M. Kabir & Verma, Sushma & Panigrahi, Tushar Ranjan, 2023. "Impact investment for sustainable development: A bibliometric analysis," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 770-800.
    8. Umar, Muhammad & Safi, Adnan, 2023. "Do green finance and innovation matter for environmental protection? A case of OECD economies," Energy Economics, Elsevier, vol. 119(C).
    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. Dai, Xiajing & Zhang, Junjie, 2024. "China's green development journey through resource rent optimization and green finance policies," Resources Policy, Elsevier, vol. 90(C).
    2. Ma, Hongchao & Zhang, Haonan, 2024. "Can green energy expansion develop the mineral resource market in East Asia?," Resources Policy, Elsevier, vol. 90(C).
    3. Xu, Jin & Liu, Chengjun & Dou, Gang & Cai, Yunfei, 2024. "Mineral resource management in Chinese rural areas: Policy assessment for green economic growth," Resources Policy, Elsevier, vol. 90(C).
    4. Chu, Mingbin & Li, Bingwei & Gu, Weiyu & Dai, Xiajing, 2024. "Role of green finance in enhancing the sustainability in the mining sector in Asia," Resources Policy, Elsevier, vol. 88(C).
    5. Zhang, Wei & Liu, Xuemeng & Zhao, Shikuan & Tang, Tian, 2024. "Does green finance agglomeration improve carbon emission performance in China? A perspective of spatial spillover," Applied Energy, Elsevier, vol. 358(C).
    6. Xi Zhao & Siqin Zhang & Najid Ahmad & Shuangguo Wang & Jiaxing Zhao, 2024. "Unlocking Sustainable Growth: The Transformative Impact of Green Finance on Industrial Carbon Emissions in China," Sustainability, MDPI, vol. 16(18), pages 1-21, September.
    7. Boyang Chen & Canghong Wang, 2024. "RETRACTED ARTICLE: Circular economy and biomass utilization: economic prospect for sustainable energy transition in China," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-27, April.
    8. Wei, Jiping & Zhou, Jing & Cheng, Zhangfan, 2023. "Role of E-marketing of mineral products in achieving sustainability," Resources Policy, Elsevier, vol. 86(PA).
    9. Chunhong Liu & Shisong Jiang & Hanfei Zhang & Ziyi Lu & Umberto Desideri, 2024. "China and Italy’s Energy Development Trajectories: Current Landscapes and Future Cooperation Potential," Energies, MDPI, vol. 17(4), pages 1-18, February.
    10. Hayat, Sikandar & Safi, Adnan & Wahab, Salman & Shahzad, Khurram & Chen, Yingying, 2023. "Renewable energy R&D and natural resources: A success story of environmentally friendly financing in OECD economies," Resources Policy, Elsevier, vol. 83(C).
    11. Qu, Xueping & Xu, Aidi, 2023. "Ways to promote investments in sustainable energy utilities in the central Asian regional economic cooperation program region," Utilities Policy, Elsevier, vol. 84(C).
    12. Xu, Bin & Lin, Boqiang, 2024. "Green finance, green technology innovation, and wind power development in China: Evidence from spatial quantile model," Energy Economics, Elsevier, vol. 132(C).
    13. Yi, Hong & Hao, Ling & Liu, Aoran & Zhang, Ziyu, 2023. "Green finance development and resource efficiency: A financial structure perspective," Resources Policy, Elsevier, vol. 85(PA).
    14. Xu, Shulin & Zhong, Min & Wang, Yan, 2024. "Can innovative industrial clusters enhance urban economic resilience? A quasi-natural experiment based on an innovative pilot policy," Energy Economics, Elsevier, vol. 134(C).
    15. Yu, Xiaofan & Wang, Jin, 2023. "Enhancing sustainable trade of mineral resources between China and African Great Lakes economies: Recommendations for action," Resources Policy, Elsevier, vol. 85(PB).
    16. Huimin Jia & Yanqiu Wu, 2024. "RETRACTED ARTICLE: Sustainable energy utility investment role in energy transformation progress: case of Mongolia," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-16, April.
    17. Zhao, Tong, 2023. "The impact of financial inclusion and natural resource endowment on China's carbon emissions in the post-covid-19 period," Resources Policy, Elsevier, vol. 86(PB).
    18. Li, Rongnan & Liu, Zhuang & Li, Shun & Geng, Jiao & Shi, Guanqun & Gu, Xiao, 2023. "Geopolitical risk, green finance and natural resources: A novel analysis of China's national level data," Resources Policy, Elsevier, vol. 86(PB).
    19. Wang, Yonglong & Wang, Rui, 2024. "Mineral resource rent and sustainable transition: The mediating role of financial development," Resources Policy, Elsevier, vol. 89(C).
    20. Fu, Tong & Li, Zijun & Qiu, Zhaoxuan & Tong, Xinle, 2024. "The policy gap between finance and economy: Evidence from China's green finance policy," Energy Economics, Elsevier, vol. 134(C).

    More about this item

    Keywords

    Green finance; Sustainable energy resources; Fossil-based economic growth pattern; China;
    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
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    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:eee:jrpoli:v:86:y:2023:i:pa:s0301420723009303. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    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.