Trade openness, green finance and natural resources: A literature review

Hong Wu

Resources Policy, 2022, vol. 78, issue C

Abstract: Green finance has recently begun to receive increased significance in environmental and business studies due to its importance in combating climate change and the production of excessive greenhouse gases. China is a highly industrial country that is indexed high on the production of pollution. trade openness of this country is also a major contributor to its increased levels of industrialization and pollution. it is believed that if appropriate measures of trade openness are carried out to regulate the flow and trade of natural resources between countries, and by the application of the green finance theories, the level of harmful environmental footprints can be reduced and the and the overall environmental quality and sustainability can be enhanced. Hence, in this paper, u sing a vector autoregression (VAR) model, based on data from 1981 to 2020, this study found that that trade openness and green finance levels are dependent on the use of natural resources significantly. Moreover, it is found that the use of coal and oil has strong negative impacts on green finance implying that the use of coal, oil, and such pollution-causing fuels can lower green finance. Similarly, it was found that gas and oil consumption were strong predictors of trade openness in the country. It is suggested that the use of gas should be increased as it produces the least pollution and can lead trade towards a more sustainable direction.

Keywords: Green finance; Trade openness; Coal; Oil; Gas; Natural resources; VAR model; China (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420722002495
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:78:y:2022:i:c:s0301420722002495

DOI: 10.1016/j.resourpol.2022.102801

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().