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Green credits, green securities, renewable energy, and environmental quality: a comparative analysis of sustainable development across Chinese provinces

Author

Listed:
  • Diby Francois Kassi

    (Henan University
    Université Félix Houphouët-Boigny, (UFHB))

  • Yao Li

    (Henan University)

  • Thierry Yobouet Gnangoin

    (Suzhou University)

  • Siele Jean Tuo

    (Université Félix Houphouët-Boigny, (UFHB)
    Dongbei University of Finance and Economics)

  • Franck Edouard Gnahe

    (International Education School)

  • Ruqia Shaikh

    (Institute of Business Management, College of Business Management)

  • Dang Yongjie

    (Henan University)

Abstract

Combating climate change has emerged as a critical mandate for sustainable development, particularly among the top polluters. Green financial instruments have become popular in this regard as the world is shifting to a low-carbon economy to curb global environmental deterioration. This study assesses how renewable energy and two major green financial instruments, green credits (TLBs) and green securities (CAPs), affect environmental quality during the 1992Q1–2020Q4 period. We focused on China, the world’s second-largest economy and one of the main CO2 emitters, as a case study from which other countries can adjust their green policies to sustainable development. In a comparative analysis, we mainly employed the method of moments-quantile regression (MM-QR) with the fixed-effects model and Granger’s spectral causality in the frequency domain. First, the results revealed that green securities effectively reduced CO2 emissions in all regions at all quantiles than green credits that mainly improved environmental quality in the eastern region, unlike the central and western regions in most cases. Second, we found disparate and asymmetrical effects of the size of TLBs and CAPs on CO2 emissions across provinces. Third, renewable energy consumption enhanced environmental quality in all provinces. In contrast, economic growth, oil prices, urbanization, trade openness, and foreign direct investments have heterogeneous effects over time on CO2 emissions across provinces. Accordingly, based on the special characteristics of each region, our findings imply heterogeneous and specific green policies for sustainable development over time.

Suggested Citation

  • Diby Francois Kassi & Yao Li & Thierry Yobouet Gnangoin & Siele Jean Tuo & Franck Edouard Gnahe & Ruqia Shaikh & Dang Yongjie, 2024. "Green credits, green securities, renewable energy, and environmental quality: a comparative analysis of sustainable development across Chinese provinces," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(10), pages 1-37, October.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:10:d:10.1007_s10668-023-03717-9
    DOI: 10.1007/s10668-023-03717-9
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    More about this item

    Keywords

    Green credits; Green securities; Renewable energy; Carbon emissions; Chinese provinces; Moments-quantile regression;
    All these keywords.

    JEL classification:

    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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