IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i11p4455-d1401418.html
   My bibliography  Save this article

Green Finance Advancement and Its Impact on Urban Haze Pollution in China: Evidence from 283 Cities

Author

Listed:
  • Yichen Qiang

    (School of Economics and management, Northwest University, Xi’an 710100, China)

  • Yao Tang

    (School of Economics and management, Northwest University, Xi’an 710100, China)

  • Chen Wang

    (School of Humanity and Law, Chengdu University of Technology, Chengdu 610059, China)

Abstract

This study selects the entropy method to measure the comprehensive index of green finance and 2011–2020 panel data covering 283 cities in China; describes spatial and temporal evolution, the migration of the centre of gravity, and discrete trends in green finance and urban haze pollution; and empirically examines the effect of green finance on urban haze pollution using static and dynamic spatial Durbin models. The study revealed that Chinese urban haze pollution significantly decreased during the sample period and that the hotspot emission area shifted to the northeast. Green finance experienced significant advancement, transitioning from a lower stage to a higher stage and becoming more geographically focused. Green finance mainly suppresses urban haze pollution through spatial spillover effects, and such spatial spillover effects change from positive to negative over time. Regarding regional heterogeneity, the effect on the western region is positive, the effects on the central and eastern regions are negative, and there is a spatial spillover effect “from promotion to inhibition” in the eastern region. Due to the heterogeneity in resource endowments, green finance in nonresource-based cities has a greater impact on haze pollution than does green finance in other cities, and in the long term, it has a significant inhibitory effect on haze pollution. This study reveals the effect of green finance on urban haze pollution from a dynamic perspective and, in doing so, it not only provides a new path for joint governance of haze pollution between cities but also provides more accurate guidance for the government to formulate policies for different regions and regions with different resource endowments.

Suggested Citation

  • Yichen Qiang & Yao Tang & Chen Wang, 2024. "Green Finance Advancement and Its Impact on Urban Haze Pollution in China: Evidence from 283 Cities," Sustainability, MDPI, vol. 16(11), pages 1-22, May.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:11:p:4455-:d:1401418
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/11/4455/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/11/4455/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Su, Chi-Wei & Li, Wenhao & Umar, Muhammad & Lobonţ, Oana-Ramona, 2022. "Can green credit reduce the emissions of pollutants?," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 205-219.
    2. Fei Fan & Dailin Cao & Ning Ma, 2020. "Is Improvement of Innovation Efficiency Conducive to Haze Governance? Empirical Evidence from 283 Chinese Cities," IJERPH, MDPI, vol. 17(17), pages 1-20, August.
    3. Guosong Wu, 2023. "Research on the spatial impact and coupling coordination of green finance on the ecological development of China’s economy," Economic Change and Restructuring, Springer, vol. 56(5), pages 3353-3381, October.
    4. Du, Juntao & Shen, Zhiyang & Song, Malin & Vardanyan, Michael, 2023. "The role of green financing in facilitating renewable energy transition in China: Perspectives from energy governance, environmental regulation, and market reforms," Energy Economics, Elsevier, vol. 120(C).
    5. Hepei Li & Chen Chen & Muhammad Umair, 2023. "Green Finance, Enterprise Energy Efficiency, and Green Total Factor Productivity: Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-14, July.
    6. Bei, Jinlan & Wang, Chunyu, 2023. "Renewable energy resources and sustainable development goals: Evidence based on green finance, clean energy and environmentally friendly investment," Resources Policy, Elsevier, vol. 80(C).
    7. Ling-Yun He & Li Liu, 2018. "Stand by or Follow? Responsibility Diffusion Effects and Green Credit," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(8), pages 1740-1760, June.
    8. Svenn Jensens & Kristina Mohlin & Karen Pittel & Thomas Sterner, 2015. "An Introduction to the Green Paradox: The Unintended Consequences of Climate Policies," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 9(2), pages 246-265.
    9. Kong, Gaowen & Wang, Shuai & Wang, Yanan, 2022. "Fostering firm productivity through green finance: Evidence from a quasi-natural experiment in China," Economic Modelling, Elsevier, vol. 115(C).
    10. Cristina Elena POPA TACHE, 2022. "The EU-China road to the Comprehensive Agreement on Investment," Juridical Tribune - Review of Comparative and International Law, Bucharest Academy of Economic Studies, vol. 12(4), pages 476-494, December.
    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. Zhang, Weike & Luo, Qian & Zhang, Yufeng & Yu, Ao, 2023. "Does green credit policy matter for corporate exploratory innovation? Evidence from Chinese enterprises," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 820-834.
    2. 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).
    3. Lamei, Yin & Zhou, Yue & Shan, Liu, 2023. "Environmental efficiency, climate innovation, and resource rent in Chinaʼs SDGs: Insights from quantile regressions," Resources Policy, Elsevier, vol. 86(PA).
    4. Carrilho-Nunes, Inês & Catalão-Lopes, Margarida, 2022. "The effects of environmental policy and technology transfer on GHG emissions: The case of Portugal," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 255-264.
    5. Qadri, Hussain Mohi ud Din & Ali, Hassnian & Abideen, Zain ul & Jafar, Ahmad, 2024. "Mapping the Evolution of Green Finance Research and Development in Emerging Green Economies," Resources Policy, Elsevier, vol. 91(C).
    6. Mao, Qian & Ma, Xinyuan & Sun, Yunpeng, 2023. "Study of impacts of blockchain technology on renewable energy resource findings," Renewable Energy, Elsevier, vol. 211(C), pages 802-808.
    7. Satar Bakhsh & Md Shabbir Alam & Wei Zhang, 2024. "Green finance and Sustainable Development Goals: is there a role for geopolitical uncertainty?," Economic Change and Restructuring, Springer, vol. 57(4), pages 1-30, August.
    8. Wang, Kai-Hua & Zhao, Yan-Xin & Jiang, Cui-Feng & Li, Zheng-Zheng, 2022. "Does green finance inspire sustainable development? Evidence from a global perspective," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 412-426.
    9. Haiqian Ke & Wenyi Yang & Xiaoyang Liu & Fei Fan, 2020. "Does Innovation Efficiency Suppress the Ecological Footprint? Empirical Evidence from 280 Chinese Cities," IJERPH, MDPI, vol. 17(18), pages 1-23, September.
    10. Marc GRONWALD & Ngo Van LONG & Luise ROEPKE, 2017. "Three Degrees of Green Paradox: The Weak, The Strong, and the Extreme Green Paradox," Cahiers de recherche 02-2017, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    11. Jia, Junsheng & He, Xiaoyu & Zhu, Taiyu & Zhang, Eryu, 2023. "Does green finance reform promote corporate green innovation? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    12. Elizabeth Baldwin, Yongyang Cai, Karlygash Kuralbayeva, 2018. "To build or not to build? Capital stocks and climate policy," GRI Working Papers 290, Grantham Research Institute on Climate Change and the Environment.
    13. Ino, Hiroaki & Matsueda, Norimichi & Matsumura, Toshihiro, 2022. "Market competition and strategic choices of electric power sources under fluctuating demand," Resource and Energy Economics, Elsevier, vol. 68(C).
    14. Lei, Ni & Miao, Qin & Yao, Xin, 2023. "Does the implementation of green credit policy improve the ESG performance of enterprises? Evidence from a quasi-natural experiment in China," Economic Modelling, Elsevier, vol. 127(C).
    15. Li, Xin & Li, Zheng & Su, Chi-Wei & Umar, Muhammad & Shao, Xuefeng, 2022. "Exploring the asymmetric impact of economic policy uncertainty on China's carbon emissions trading market price: Do different types of uncertainty matter?," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    16. Gong, Zheng & Gong, Liuji, 2024. "The financial geographic structure, Confucian culture, and corporate asset allocation efficiency," Finance Research Letters, Elsevier, vol. 63(C).
    17. Han Yan & Md. Qamruzzaman & Sylvia Kor, 2023. "Nexus between Green Investment, Fiscal Policy, Environmental Tax, Energy Price, Natural Resources, and Clean Energy—A Step towards Sustainable Development by Fostering Clean Energy Inclusion," Sustainability, MDPI, vol. 15(18), pages 1-25, September.
    18. Ghodeswar, Archana & Oliver, Matthew E., 2022. "Trading one waste for another? Unintended consequences of fly ash reuse in the Indian electric power sector," Energy Policy, Elsevier, vol. 165(C).
    19. Wang, Haijun & Wang, Yongming & Zhang, Xue & Zhang, Cheng, 2024. "The effect of foreign aid on carbon emissions in recipient countries: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    20. Cathrine Hagem & Halvor Briseid Storrøsten, 2019. "Supply‐ versus Demand‐Side Policies in the Presence of Carbon Leakage and the Green Paradox," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(1), pages 379-406, January.

    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:gam:jsusta:v:16:y:2024:i:11:p:4455-:d:1401418. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.