IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i14p5832-d1431480.html
   My bibliography  Save this article

The Impact of Green Finance on Agricultural Pollution and Carbon Reduction: The Case of China

Author

Listed:
  • Li Cao

    (College of Economics & Management, Shanghai Ocean University, Shanghai 201306, China)

  • Jiaqi Gao

    (College of Economics & Management, Shanghai Ocean University, Shanghai 201306, China)

Abstract

Based on the double-carbon target, the agricultural sector has implemented the concept of being green and synergistically promoted pollution and carbon reduction. Positioned as a novel financial paradigm, green finance places greater emphasis on environmental stewardship compared to its traditional counterparts. This focus enhances resource allocation efficiency, thereby achieving the goal of reducing pollution and carbon emissions. To research the influence of green finance on agricultural pollution and carbon reduction, this study leverages panel data spanning 2011 to 2021 from 31 provinces, autonomous regions, and municipalities across China. It employs the fixed-effect model and mediating-effect model. The findings reveal that: (1) Green finance exerts a notable influence on reducing both pollution and carbon emissions in agriculture, with the latter showing a more pronounced effect. (2) Regional disparities exist in green finance, affecting agricultural pollution and carbon reduction. (3) By fostering technological innovation and optimizing industrial frameworks, green finance emerges as a catalyst for curbing surface pollution and carbon dioxide emissions in agriculture. On this basis, relevant suggestions are put forward to provide policy insights for improving the green financial system, which will help further promote carbon and pollution reduction.

Suggested Citation

  • Li Cao & Jiaqi Gao, 2024. "The Impact of Green Finance on Agricultural Pollution and Carbon Reduction: The Case of China," Sustainability, MDPI, vol. 16(14), pages 1-15, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:14:p:5832-:d:1431480
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/14/5832/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/14/5832/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhang, Yongji & Lan, Minghui & Zhao, Yapu & Su, Zhi & Hao, Yu & Du, Heran, 2024. "Regional carbon emission pressure and corporate green innovation," Applied Energy, Elsevier, vol. 360(C).
    2. Zhang, Lixia & Sun, Huaping & Pu, Tianlong & Sun, Hui & Chen, Zhenling, 2024. "Do green finance and hi-tech innovation facilitate sustainable development? Evidence from the Yangtze River Economic Belt," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1430-1442.
    3. Lan, Jing & Wei, Yiming & Guo, Jie & Li, Qiuming & Liu, Zhen, 2023. "The effect of green finance on industrial pollution emissions: Evidence from China," Resources Policy, Elsevier, vol. 80(C).
    4. Xin Zhang & Eric A. Davidson & Denise L. Mauzerall & Timothy D. Searchinger & Patrice Dumas & Ye Shen, 2015. "Managing nitrogen for sustainable development," Nature, Nature, vol. 528(7580), pages 51-59, December.
    5. Yu, Huaying & Wei, Wei & Li, Jinhe & Li, Ying, 2022. "The impact of green digital finance on energy resources and climate change mitigation in carbon neutrality: Case of 60 economies," Resources Policy, Elsevier, vol. 79(C).
    6. Wang, Quan-Jing & Tang, Kai & Hu, Hai-Qing, 2022. "The impact of digital finance on green innovation: Evidence from provinces in China," Innovation and Green Development, Elsevier, vol. 1(1).
    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. Muntazir Hussain & Ramiz Ur Rehman & Usman Bashir, 2024. "Environmental pollution, innovation, and financial development: an empirical investigation in selected industrialized countries using the panel ARDL approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 29217-29248, November.
    2. 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.
    3. Lingui Qin & Yan Zhang & Yige Wang & Xinning Pan & Zhe Xu, 2024. "Research on the Impact of Digital Green Finance on Agricultural Green Total Factor Productivity: Evidence from China," Agriculture, MDPI, vol. 14(7), pages 1-23, July.
    4. Yin, Lei & Yang, Yuanyuan, 2024. "How does digital finance influence corporate greenwashing behavior?," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 359-373.
    5. Xiuli Liu & Jing Cui & Yanrui Wu & Xiaohang Yue & Jun Shen & Pibin Guo, 2024. "The Nexus between Green Finance and Carbon Emissions: Evidence from Maturity Mismatch in China," Sustainability, MDPI, vol. 16(10), pages 1-24, May.
    6. Chen, Xiaoyu & Wang, Yujing & Li, Tongxin, 2024. "Examining the resource curse phenomenon, digital finance integration, and their impacts on economic growth: Empirical insights from South Korea," Resources Policy, Elsevier, vol. 88(C).
    7. Tang, Yunfeng & Zhang, Xuan & Lu, Shibao & Taghizadeh-Hesary, Farhad, 2023. "Digital finance and air pollution in China: Evolution characteristics, impact mechanism and regional differences," Resources Policy, Elsevier, vol. 86(PA).
    8. Maria V. Sigova & Igor K. Klyuchnikov & Oleg I. Klyuchnikov, 2024. "Sustainability and Security of Green Finance from the Multi-agent Games Perspective," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 78-95, February.
    9. 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.
    10. Paul L. G. Vlek & Asia Khamzina & Hossein Azadi & Anik Bhaduri & Luna Bharati & Ademola Braimoh & Christopher Martius & Terry Sunderland & Fatemeh Taheri, 2017. "Trade-Offs in Multi-Purpose Land Use under Land Degradation," Sustainability, MDPI, vol. 9(12), pages 1-19, November.
    11. Xin Nie & Jianxian Wu & Han Wang & Weijuan Li & Chengdao Huang & Lihua Li, 2022. "Contributing to carbon peak: Estimating the causal impact of eco‐industrial parks on low‐carbon development in China," Journal of Industrial Ecology, Yale University, vol. 26(4), pages 1578-1593, August.
    12. Zhen, Wei & Qin, Quande & Miao, Lu, 2023. "The greenhouse gas rebound effect from increased energy efficiency across China's staple crops," Energy Policy, Elsevier, vol. 173(C).
    13. Dániel Fróna & János Szenderák & Mónika Harangi-Rákos, 2019. "The Challenge of Feeding the World," Sustainability, MDPI, vol. 11(20), pages 1-18, October.
    14. Jiamin Liu & Xiaoyu Ma & Bin Zhao & Qi Cui & Sisi Zhang & Jiaoning Zhang, 2023. "Mandatory Environmental Regulation, Enterprise Labor Demand and Green Innovation Transformation: A Quasi-Experiment from China’s New Environmental Protection Law," Sustainability, MDPI, vol. 15(14), pages 1-31, July.
    15. Otavio Ananias Pereira da Silva & Dayane Bortoloto da Silva & Marcelo Carvalho Minhoto Teixeira-Filho & Tays Batista Silva & Cid Naudi Silva Campos & Fabio Henrique Rojo Baio & Gileno Brito de Azevedo, 2023. "Macro- and Micronutrient Contents and Their Relationship with Growth in Six Eucalyptus Species," Sustainability, MDPI, vol. 15(22), pages 1-12, November.
    16. David I. Stern, 2017. "The environmental Kuznets curve after 25 years," Journal of Bioeconomics, Springer, vol. 19(1), pages 7-28, April.
    17. Anna Lungarska & Thierry Brunelle & Raja Chakir & Pierre‐Alain Jayet & Rémi Prudhomme & Stéphane De Cara & Jean‐Christophe Bureau, 2023. "Halving mineral nitrogen use in European agriculture: Insights from multi‐scale land‐use models," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1529-1550, September.
    18. Jiuliang Xu & Liangquan Wu & Bingxin Tong & Jiaxu Yin & Zican Huang & Wei Li & Xuexian Li, 2021. "Magnesium Supplementation Alters Leaf Metabolic Pathways for Higher Flavor Quality of Oolong Tea," Agriculture, MDPI, vol. 11(2), pages 1-12, February.
    19. Xiaomeng Zhao & Kangyin Dong & Jun Zhao & Qingzhe Jiang, 2024. "RETRACTED ARTICLE: Paths to sustainable development in China: why green finance and green technology matter?," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-26, April.
    20. Susan, Enyang Besong & Pan, Yanchun, 2024. "Trust as a determinant of green finance through information sharing and technological penetration: Integrating the moderation of governance for sustainable growth," Technology in Society, Elsevier, vol. 77(C).

    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:14:p:5832-:d:1431480. 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.