Studying the nexus of green financing and sustainable development in China: Role of socioeconomic influences
Abstract
The paper explores the concept of “green finance” and its role in addressing environmental issues through diverse funding strategies in China. It analyzes the factors driving renewable energy development in China from 2005 to 2022 using a unique method called “christened plate cointegration” and connected-ness modeling. The study highlights the significance of encouraging environmentally responsible financing and involving private sector businesses in regional and global growth for long-term sustainability. The paper emphasizes the importance of cross-country dependence (CD) as a metric for analyzing inter-connectedness between studied countries and suggests isolating the pass dependence for an impartial CD analysis. The study demonstrates that an increase in renewable energy usage leads to a rise in trade-mark registrations and financial development applications, and private sector involvement corresponds to the rise in trademarks and patents. Overall, the study emphasizes the significance of green financing in mitigating climate change and advancing sustainable growth, as well as the role played by private enterprises in local, national, and global development.
References
[1] Wang S, Dong Q, Zhang J, et al. Robustness assessment of power network with renewable energy. Electric Power Systems Research 2023; 217: 109138. doi: 10.1016/j.epsr.2023.109138
[2] Gossel SJ. FDI, democracy and corruption in Sub-Saharan Africa. Journal of Policy Modeling 2018; 40(4): 647–662. doi: 10.1016/j.jpolmod.2018.04.001
[3] Sebestyén V, Abonyi J. Data-driven comparative analysis of national adaptation pathways for Sustainable Development Goals. Journal of Cleaner Production 2021; 319: 128657. doi: 10.1016/j.jclepro.2021.128657
[4] Hanssen F, May R, van Dijk J, et al. Spatial multi-criteria decision analysis tool suite for consensus-based siting of renewable energy structures. Journal of Environmental Assessment Policy and Management 2018; 20(03): 1840003. doi: 10.1142/s1464333218400033
[5] García-Quevedo J, Jové-Llopis E. Environmental policies and energy efficiency investments. An industry-level analysis. Energy Policy 2021; 156: 112461. doi: 10.1016/j.enpol.2021.112461
[6] Ou JZ, Ge W, Carey B, et al. Physisorption-based charge transfer in two-dimensional SnS2 for selective and reversible NO2 gas sensing. ACS Nano 2015; 9(10): 10313–10323. doi: 10.1021/acsnano.5b04343
[7] Graham JR, Rogers DA. Do firms hedge in response to tax incentives? The Journal of Finance 2002; 57(2): 815–839. doi: 10.1111/1540-6261.00443
[8] Kao C. Network data envelopment analysis: A review. European Journal of Operational Research 2014; 239(1): 1–16. doi: 10.1016/j.ejor.2014.02.039
[9] Chen H, Jiao S, Wang M, et al. Parameters identification of photovoltaic cells and modules using diversification-enriched Harris Hawks optimization with chaotic drifts. Journal of Cleaner Production 2020; 244: 118778. doi: 10.1016/j.jclepro.2019.118778
[10] Lin B, Jia Z. The energy, environmental and economic impacts of carbon tax rate and taxation industry: A CGE based study in China. Energy 2018; 159: 558–568. doi: 10.1016/j.energy.2018.06.167
[11] Rodriguez-Gonzalez PT, Rico-Martinez R, Rico-Ramirez V. An integrated stochastic economic-ecological-social model with stratified-population. Ecological Modelling 2018; 368: 15–26. doi: 10.1016/j.ecolmodel.2017.11.012
[12] Salahuddin M, Alam K, Ozturk I, et al. The effects of electricity consumption, economic growth, financial development and foreign direct investment on CO2 emissions in Kuwait. Renewable and Sustainable Energy Reviews 2018; 81: 2002–2010. doi: 10.1016/j.rser.2017.06.009
[13] Rugg MD, Vilberg KL. Brain networks underlying episodic memory retrieval. Current Opinion in Neurobiology 2013; 23(2): 255–260. doi: 10.1016/j.conb.2012.11.005
[14] Durán-Romero G, López AM, Beliaeva T, et al. Bridging the gap between circular economy and climate change mitigation policies through eco-innovations and Quintuple Helix Model. Technological Forecasting and Social Change 2020; 160: 120246. doi: 10.1016/j.techfore.2020.120246
[15] Knopf JD, Nam J, Thornton JH. The volatility and price sensitivities of managerial stock option portfolios and corporate hedging. The Journal of Finance 2002; 57(2): 801–813. doi: 10.1111/1540-6261.00442
[16] Lazzeroni P, Moretti F, Stirano F. Economic potential of PV for Italian residential end-users. Energy 2020; 200: 117508. doi: 10.1016/j.energy.2020.117508
[17] Alekseichuk I, Mantell K, Shirinpour S, et al. Comparative modeling of transcranial magnetic and electric stimulation in mouse, monkey, and human. NeuroImage 2019; 194: 136–148. doi: 10.1016/j.neuroimage.2019.03.044
[18] Lee CC, Wang CW, Ho SJ. Financial innovation and bank growth: The role of institutional environments. The North American Journal of Economics and Finance 2020; 53: 101195. doi: 10.1016/j.najef.2020.101195
[19] Chakraborty P, Chatterjee C. Does environmental regulation indirectly induce upstream innovation? New evidence from India. Research Policy 2017; 46(5): 939–955. doi: 10.1016/j.respol.2017.03.004
[20] Shao Y, Wang J, Wu H, et al. Graphene based electrochemical sensors and biosensors: A review. Electroanalysis 2010; 22(10): 1027–1036. doi: 10.1002/elan.200900571
[21] Lee H, Choi TK, Lee YB, et al. A graphene-based electrochemical device with thermoresponsive microneedles for diabetes monitoring and therapy. Nature Nanotechnology 2016; 11(6): 566–572. doi: 10.1038/nnano.2016.38
[22] Leenaerts O, Partoens B, Peeters FM. Adsorption of H2O, NH3, CO, NO2, and NO on graphene: A first-principles study. Physical Review B 2008; 77(12). doi: 10.1103/physrevb.77.125416
[23] Das A, Dost R, Richardson T, et al. A nitrogen dioxide sensor based on an organic transistor constructed from amorphous semiconducting polymers. Advanced Materials 2007; 19(22): 4018–4023. doi: 10.1002/adma.200701504
[24] Iqbal S, Taghizadeh-Hesary F, Mohsin M, et al. Assessing the role of the green finance index in environmental pollution reduction. Studies of Applied Economics 2021; 39(3). doi: 10.25115/eea.v39i3.4140
[25] Zhang J, Dai Y, Su CW, et al. Intertemporal change in the effect of economic growth on carbon emission in China. Energy & Environment 2021; 32(7): 1207–1225. doi: 10.1177/0958305x211008618
[26] Numan U, Ma B, Sadiq M, et al. The role of green finance in mitigating environmental degradation: Empirical evidence and policy implications from complex economies. Journal of Cleaner Production 2023; 400: 136693. doi: 10.1016/j.jclepro.2023.136693
[27] Sun Y, Guan W, Cao Y, et al. Role of green finance policy in renewable energy deployment for carbon neutrality: Evidence from China. Renewable Energy 2022; 197: 643–653. doi: 10.1016/j.renene.2022.07.164
[28] Zhao L, Chau KY, Tran TK, et al. Enhancing green economic recovery through green bonds financing and energy efficiency investments. Economic Analysis and Policy 2022; 76: 488–501. doi: 10.1016/j.eap.2022.08.019
[29] Zhu Q, Qin SJ. Supervised diagnosis of quality and process faults with canonical correlation analysis. Industrial & Engineering Chemistry Research 2019; 58(26): 11213–11223. doi: 10.1021/acs.iecr.9b00320
[30] Gu J, Umar M, Soran S, et al. Exacerbating effect of energy prices on resource curse: Can research and development be a mitigating factor? Resources Policy 2020; 67: 101689. doi: 10.1016/j.resourpol.2020.101689
Copyright (c) 2023 Muhammad Haroon, Inam Ullah
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors contributing to this journal agree to publish their articles under the Creative Commons Attribution 4.0 International License, allowing third parties to share their work (copy, distribute, transmit) and to adapt it for any purpose, even commercially, under the condition that the authors are given credit. With this license, authors hold the copyright.
