IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v90y2024ics0301420724000631.html
   My bibliography  Save this article

Financial innovation, green investment, and sustainable mineral extractions in China

Author

Listed:
  • He, Guohua
  • Zhu, Peiling
  • Wu, Changjun

Abstract

This paper focuses on the intersection of financial innovation, green investment and sustainable mineral extractions in China, a prominent Global South country, taking data from 2010 to 2021. By employing cointegration technique, this study unveils compelling insights into the relationship between financial practices and environmentally sustainable mineral extraction. The results of this research show a significant impact of green innovation and green investment on the reduction of carbon emissions across the selected countries. These findings emphasize the critical role that innovative financial strategies and investments in sustainable practices play in mitigating the environmental impact of mineral extractions. Furthermore, the study unearths a significant positive relationship between financial innovation and green mineral extractions in China. It demonstrates that financial innovation, when strategically employed, can substantially enhance the sustainability of mineral extraction processes. This is particularly significant given the growing demand for minerals in China and the pressing need for environmentally responsible practices. These findings hold profound implications for policymakers, businesses, and investors operating in China and Global South as well. The results underscore the importance of embracing financial innovation and green investment as powerful tools for reducing carbon emissions and promoting sustainable mineral extractions.

Suggested Citation

  • He, Guohua & Zhu, Peiling & Wu, Changjun, 2024. "Financial innovation, green investment, and sustainable mineral extractions in China," Resources Policy, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:jrpoli:v:90:y:2024:i:c:s0301420724000631
    DOI: 10.1016/j.resourpol.2024.104696
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420724000631
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2024.104696?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. Berly Martawardaya & Ari Rakatama & Dhenny Yuartha Junifta & Dinda Ayu Maharani, 2022. "Green economy post COVID-19: insights from Indonesia," Development in Practice, Taylor & Francis Journals, vol. 32(1), pages 98-106, January.
    2. Irfan, Muhammad & Abdur Rehman, Mubeen & Liu, Xuemei & Razzaq, Asif, 2022. "Interlinkages between mineral resources, financial markets, and sustainable energy sources: Evidence from minerals exporting countries," Resources Policy, Elsevier, vol. 79(C).
    3. Nassani, Abdelmohsen A. & Aldakhil, Abdullah Mohammed & Zaman, Khalid, 2021. "Ecological footprints jeopardy for mineral resource extraction: Efficient use of energy, financial development and insurance services to conserve natural resources," Resources Policy, Elsevier, vol. 74(C).
    4. Shahbaz, Muhammad & Siddiqui, Aaliyah & Ahmad, Shabbir & Jiao, Zhilun, 2023. "Financial development as a new determinant of energy diversification: The role of natural capital and structural changes in Australia," Energy Economics, Elsevier, vol. 126(C).
    5. Peng, Xuan & Mousa, Saeed & Sarfraz, Muddassar & Abdelmohsen A, Nassani & Haffar, Mohamed, 2023. "Improving mineral resource management by accurate financial management: Studying through artificial intelligence tools," Resources Policy, Elsevier, vol. 81(C).
    6. Chang, Lei & Taghizadeh-Hesary, Farhad & Mohsin, Muhammad, 2023. "Role of mineral resources trade in renewable energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 181(C).
    7. Ding, Tao & Li, Hao & Tan, Ruipeng & Zhao, Xin, 2023. "How does geopolitical risk affect carbon emissions?: An empirical study from the perspective of mineral resources extraction in OECD countries," Resources Policy, Elsevier, vol. 85(PB).
    8. Jahanger, Atif & Yu, Yang & Hossain, Mohammad Razib & Murshed, Muntasir & Balsalobre-Lorente, Daniel & Khan, Uzma, 2022. "Going away or going green in NAFTA nations? Linking natural resources, energy utilization, and environmental sustainability through the lens of the EKC hypothesis," Resources Policy, Elsevier, vol. 79(C).
    9. Teng, Zhong-lu & Guo, Cheng & Zhao, Qiuhan & Mubarik, Muhammad Shujaat, 2023. "Antecedents of green process innovation adoption: An AHP analysis of China's gas sector," Resources Policy, Elsevier, vol. 85(PA).
    10. Ahmad, Mahmood & Dai, Jiapeng & Mehmood, Usman & Abou Houran, Mohamad, 2023. "Renewable energy transition, resource richness, economic growth, and environmental quality: Assessing the role of financial globalization," Renewable Energy, Elsevier, vol. 216(C).
    11. Alex Borodin & Vladislav Zaitsev & Nataliya Shash & Kirill Chibisov, 2023. "Features of Stimulating the Issue of Green Bonds in the Modern Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 281-288, September.
    12. Cheng, Shixiong & Shu, Can & Jin, Meiling & He, Yuhang, 2023. "Balancing resources and sustainability: Analyzing the impact of mineral resources utilization on green growth," Resources Policy, Elsevier, vol. 86(PA).
    13. Wang, Zhen & Huang, Yaoxuan & Ankrah, Victoria & Dai, Jiapeng, 2023. "Greening the knowledge-based economies: Harnessing natural resources and innovation in information and communication technologies for green growth," Resources Policy, Elsevier, vol. 86(PA).
    14. Balsalobre-Lorente, Daniel & Ibáñez-Luzón, Lucia & Usman, Muhammad & Shahbaz, Muhammad, 2022. "The environmental Kuznets curve, based on the economic complexity, and the pollution haven hypothesis in PIIGS countries," Renewable Energy, Elsevier, vol. 185(C), pages 1441-1455.
    15. F. Ganda, 2018. "Green research and development (R&D) investment and its impact on the market value of firms: evidence from South African mining firms," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 61(3), pages 515-534, February.
    16. Usman, Muhammad & Balsalobre-Lorente, Daniel, 2022. "Environmental concern in the era of industrialization: Can financial development, renewable energy and natural resources alleviate some load?," Energy Policy, Elsevier, vol. 162(C).
    17. Silviu Nate & Yuriy Bilan & Mariia Kurylo & Olena Lyashenko & Piotr Napieralski & Ganna Kharlamova, 2021. "Mineral Policy within the Framework of Limited Critical Resources and a Green Energy Transition," Energies, MDPI, vol. 14(9), pages 1-32, May.
    18. Yu, Siming & Wang, Xun & Liu, Jiaming & Wei, Fang, 2023. "Role of mining waste trade on green development in China: Policy implications for circular economy," Resources Policy, Elsevier, vol. 86(PA).
    19. Dai, Jiapeng & Ahmed, Zahoor & Sinha, Avik & Pata, Ugur Korkut & Alvarado, Rafael, 2023. "Sustainable green electricity, technological innovation, and ecological footprint: Does democratic accountability moderate the nexus?," Utilities Policy, Elsevier, vol. 82(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. Li, Jianying & Fang, Zhi, 2024. "Navigating COVID-19 disruptions for resilience and green growth in mineral resource trade," Resources Policy, Elsevier, vol. 90(C).
    2. Wei, Aiping, 2024. "Fueling green growth: Unveiling the catalyst of mineral resource trade in diverse economies," Resources Policy, Elsevier, vol. 88(C).
    3. Zhang, Cong & Teng, Wei, 2023. "Natural resources led financing of investment: A prospect of China's provincial data," Resources Policy, Elsevier, vol. 86(PB).
    4. Zhenxiang Cao & Liqing Peng, 2023. "The Impact of Digital Economics on Environmental Quality: A System Dynamics Approach," SAGE Open, , vol. 13(4), pages 21582440231, December.
    5. Li, Xinqiang & Wang, Cheng, 2024. "Clean Energy's influence on the mineral resource market in the ASEAN region," Resources Policy, Elsevier, vol. 91(C).
    6. Muhammad Usman & Atif Jahanger & Magdalena Radulescu & Daniel Balsalobre-Lorente, 2022. "Do Nuclear Energy, Renewable Energy, and Environmental-Related Technologies Asymmetrically Reduce Ecological Footprint? Evidence from Pakistan," Energies, MDPI, vol. 15(9), pages 1-24, May.
    7. Li, Aimin & Zhou, Shuyu, 2024. "Role of mineral-based industrialization in promoting economic growth: Implications for achieving environmental sustainability through financial management," Resources Policy, Elsevier, vol. 92(C).
    8. Jiao, Lei & Zhou, Dongjie & Xu, Runguo, 2024. "Resource dynamics and economic expansion: Unveiling the asymmetric effects of natural resources and FDI on economic growth with a lens on energy efficiency," Resources Policy, Elsevier, vol. 89(C).
    9. Atif Jahanger & Muhammad Usman & Daniel Balsalobre‐Lorente, 2022. "Linking institutional quality to environmental sustainability," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1749-1765, December.
    10. Yu, Mengyan & Umair, Muhammad & Oskenbayev, Yessengali & Karabayeva, Zhаnsaya, 2023. "Exploring the nexus between monetary uncertainty and volatility in global crude oil: A contemporary approach of regime-switching," Resources Policy, Elsevier, vol. 85(PB).
    11. Jahanger, Atif & Usman, Muhammad & Murshed, Muntasir & Mahmood, Haider & Balsalobre-Lorente, Daniel, 2022. "The linkages between natural resources, human capital, globalization, economic growth, financial development, and ecological footprint: The moderating role of technological innovations," Resources Policy, Elsevier, vol. 76(C).
    12. Rehman, Mubeen Abdur, 2024. "How has FinTech become a solution for minerals management?," Resources Policy, Elsevier, vol. 92(C).
    13. Sarwar, Suleman & Aziz, Ghazala & Waheed, Rida & Morales, Lucía, 2024. "Forecasting the mineral resource rent through the inclusion of economy, environment and energy: Advanced machine learning and deep learning techniques," Resources Policy, Elsevier, vol. 90(C).
    14. Xin Zhao & Muhammad Saeed Meo & Tella Oluwatoba Ibrahim & Noshaba Aziz & Solomon Prince Nathaniel, 2023. "Impact of Economic Policy Uncertainty and Pandemic Uncertainty on International Tourism: What do We Learn From COVID-19?," Evaluation Review, , vol. 47(2), pages 320-349, April.
    15. Xia, Xiqiang & Chishti, Muhammad Zubair & Dogan, Eyup, 2024. "Transition towards the sustainable development: unraveling the effects of mineral markets, Belt & Road Initiative, and the Paris Agreement on green economic growth," Resources Policy, Elsevier, vol. 91(C).
    16. Vincent Tawiah & Raymond Ayivor & Babajide Michael Oyewo, 2024. "Who cares about corruption in Africa? China or the USA?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 2647-2664, July.
    17. MARINESCU Ștefana & MAHDAVIAN Seyed Mohammadreza & RĂDULESCU Magdalena, 2022. "Globalization, Energy Mix, Renewable Energy, and Emission: Romanian Case," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 02, June.
    18. Khan, Zaid Ashiq & Koondhar, Mansoor Ahmed & Tiantong, Ma & Khan, Aftab & Nurgazina, Zhanar & Tianjun, Liu & Fengwang, Ma, 2022. "Do chemical fertilizers, area under greenhouses, and renewable energies drive agricultural economic growth owing the targets of carbon neutrality in China?," Energy Economics, Elsevier, vol. 115(C).
    19. Muhammad Ramzan & Ummara Razi & Muhammad Umer Quddoos & Tomiwa Sunday Adebayo, 2023. "Do green innovation and financial globalization contribute to the ecological sustainability and energy transition in the United Kingdom? Policy insights from a bootstrap rolling window approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 393-414, February.
    20. Bhat, Aijaz Ahmad & Mir, Ajaz Akber & Allie, Adeel Hussain & Ahmad Lone, Mushtaq & Al-Adwan, Ahmad Samed & Jamali, Dima & Riyaz, Iqra, 2024. "Unlocking corporate social responsibility and environmental performance: Mediating role of green strategy, innovation, and leadership," Innovation and Green Development, Elsevier, vol. 3(2).

    More about this item

    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:90:y:2024:i:c:s0301420724000631. 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.