IDEAS home Printed from https://ideas.repec.org/a/taf/jenpmg/v65y2022i2p240-271.html
   My bibliography  Save this article

Financial inclusion and green economic efficiency: evidence from China

Author

Listed:
  • Li Wang
  • Yanan Wang
  • Youxia Sun
  • Kaiji Han
  • Yuetong Chen

Abstract

Financial inclusion is crucial to a country’s competitiveness while green economy emerges as a policy priority along the sustainable development path, but how will they interact? This study examines the relationship between the two in the context of China, which is on the transition to a green economy based on city level data for 2011–2015. A multidimensional measurement of financial inclusion is established by considering the rapidly developing digital finance, and the measurement of green economic efficiency by applying the MinDW model. Results indicate that the development of financial inclusion can enhance green economic efficiency, which is mainly realized through the strengthening of the credit constraints on high-polluting firms. The findings provide further implications for implementing a financial development policy and maintain a balanced relationship between the government, financial institutions, and firms.

Suggested Citation

  • Li Wang & Yanan Wang & Youxia Sun & Kaiji Han & Yuetong Chen, 2022. "Financial inclusion and green economic efficiency: evidence from China," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 65(2), pages 240-271, January.
    • Handle: RePEc:taf:jenpmg:v:65:y:2022:i:2:p:240-271
    DOI: 10.1080/09640568.2021.1881459
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09640568.2021.1881459
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09640568.2021.1881459?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.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Inese Mavlutova & Aivars Spilbergs & Atis Verdenhofs & Jekaterina Kuzmina & Ilja Arefjevs & Andris Natrins, 2023. "The Role of Green Finance in Fostering the Sustainability of the Economy and Renewable Energy Supply: Recent Issues and Challenges," Energies, MDPI, vol. 16(23), pages 1-18, November.
    2. Shao, Junli & Wu, Dengrong & Jin, Cheng, 2023. "How do financial inclusion and education increase resource efficiency?," Resources Policy, Elsevier, vol. 85(PA).
    3. Yuan, Feng & Zhang, Peng, 2024. "Are natural resources, sustainable growth and entrepreneurship matter endogenous growth theory? The strategic role of technical progress," Resources Policy, Elsevier, vol. 96(C).
    4. Arno J. van Niekerk, 2024. "Economic Inclusion: Green Finance and the SDGs," Sustainability, MDPI, vol. 16(3), pages 1-21, January.
    5. Xueyang Wang & Xiumei Sun & Haotian Zhang & Chaokai Xue, 2022. "Digital Economy Development and Urban Green Innovation CA-Pability: Based on Panel Data of 274 Prefecture-Level Cities in China," Sustainability, MDPI, vol. 14(5), pages 1-21, March.
    6. Lina Mao & Guangfan Sun & Yining He & Shanshan Zheng & Changwei Guo, 2024. "Regional cultural inclusiveness and firm performance in China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    7. Dong, Jiajia & Dou, Yue & Jiang, Qingzhe & Zhao, Jun, 2022. "Can financial inclusion facilitate carbon neutrality in China? The role of energy efficiency," Energy, Elsevier, vol. 251(C).
    8. Nasir Khan & Mahwish Zafar & Abiodun Funso Okunlola & Zeman Zoltan & Magda Robert, 2022. "Effects of Financial Inclusion on Economic Growth, Poverty, Sustainability, and Financial Efficiency: Evidence from the G20 Countries," Sustainability, MDPI, vol. 14(19), pages 1-19, October.
    9. She, Chen & Jiang, Mingfeng & Du, Jianhua & Xu, Jiaxiang & Zhu, Xincheng, 2023. "What happened in COVID to conflict: Re-examination of financial inclusion and green development nexus in China natural resource sector," Resources Policy, Elsevier, vol. 87(PA).
    10. Hui Wang & Muhammad Wasif Zafar & Shujaat Abbas & Mehmet Akif Destek, 2023. "An assessment of energy poverty in sub-Saharan Africa: the role of financial inclusion and education," Economic Change and Restructuring, Springer, vol. 56(6), pages 4689-4711, December.
    11. Cai, Xuesen & Wei, Changjing, 2023. "Does financial inclusion and renewable energy impede environmental quality: Empirical evidence from BRI countries," Renewable Energy, Elsevier, vol. 209(C), pages 481-490.
    12. Ma, Kelin, 2023. "Digital inclusive finance and corporate green technology innovation," Finance Research Letters, Elsevier, vol. 55(PB).
    13. Yingyuan Liu & Qian Wan & Wenhui Chen, 2024. "Digital Inclusive Finance as a Catalyst for Rural Revitalization: An Empirical Analysis from the County Development Perspective in Hubei Province," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 11548-11580, September.
    14. Ran Wang & Rong Wang, 2023. "Exploring Financial Agglomeration and the Impact of Environmental Regulation on the Efficiency of the Green Economy: Fresh Evidence from 30 Regions in China," Sustainability, MDPI, vol. 15(9), pages 1-18, April.
    15. Yu, Yantuan & Tang, Kai, 2023. "Does financial inclusion improve energy efficiency?," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    16. Taskin, Dilvin & Dogan, Eyup & Madaleno, Mara, 2022. "Analyzing the relationship between energy efficiency and environmental and financial variables: A way towards sustainable development," Energy, Elsevier, vol. 252(C).
    17. Mengmeng Xu & Ruipeng Tan, 2024. "Digital economy as a catalyst for low-carbon transformation in China: new analytical insights," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    18. Yadav, Sanjeev & Samadhiya, Ashutosh & Kumar, Anil & Luthra, Sunil & Pandey, Krishan Kumar, 2024. "Nexus between fintech, green finance and natural resources management: Transition of BRICS nation industries from resource curse to resource blessed sustainable economies," Resources Policy, Elsevier, vol. 91(C).
    19. Sohail Abbas & Ghulam Dastgeer & Samia Nasreen & Shazia Kousar & Urooj Riaz & Saira Arsh & Muhammad Imran, 2024. "How Financial Inclusion and Green Innovation Promote Green Economic Growth in Developing Countries," Sustainability, MDPI, vol. 16(15), pages 1-19, July.
    20. Yuan Li & Nan Huang & Yang Zhao, 2022. "The Impact of Green Innovation on Enterprise Green Economic Efficiency," IJERPH, MDPI, vol. 19(24), pages 1-26, December.
    21. Jimoh Sina Ogede & Adedamola Akeem Siyanbola & Soliu Bidemi Adegboyega & Olayinka Esther Atoyebi, 2023. "On the asymmetric effects of economic policy uncertainty on renewable energy consumption: insights from sub-Saharan African countries," SN Business & Economics, Springer, vol. 3(10), pages 1-19, October.

    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:taf:jenpmg:v:65:y:2022:i:2:p:240-271. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CJEP20 .

    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.