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Green finance, natural resource dependence and environmental quality: Evidence from China

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  • Xiao, Yi
  • Chen, Ke

Abstract

This study examines the impact of green finance development on China's environmental quality in the context of financial technology (Fintech). Using a sample of 260 prefecture-level cities and a difference-in-difference (DID) model, we examined the policy impacts of China's green finance innovation pilot on carbon emission reduction. Our findings show that green finance significantly contributes to the reduction of carbon emissions, especially in regions with higher levels of financial development. This study emphasizes the importance of policy support in increasing the effectiveness of green finance initiatives. The carbon reduction effect of green finance is negatively moderated by natural resource dependence. It is more pronounced in regions with lower natural resource dependence. These insights provide valuable policy implications, suggesting that targeted financial policies can play a key role in advancing environmental sustainability goals.

Suggested Citation

  • Xiao, Yi & Chen, Ke, 2024. "Green finance, natural resource dependence and environmental quality: Evidence from China," Resources Policy, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:jrpoli:v:92:y:2024:i:c:s0301420724003441
    DOI: 10.1016/j.resourpol.2024.104977
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