Linkage Analysis between Finance and Environmental Protection Sectors in China: An Approach to Evaluating Green Finance

Libo Li, Wenbing Wu, Mingyu Zhang and Lu Lin
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Libo Li: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Wenbing Wu: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Mingyu Zhang: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Lu Lin: School of Economics and Management, China University of Petroleum Beijing, Beijing 102249, China

IJERPH, 2021, vol. 18, issue 5, 1-16

Abstract: Given the growing awareness of sustainable development, the environmental protection industry has attracted much attention. Green finance has developed rapidly in policymaking and practices. This study provides a framework for evaluating green finance via linkage analysis based on input–output theory. Measurements on industrial linkages are calculated in China in two provinces from 2002 to 2018, which study the relationship between finance and environmental protection sectors. The results show that the environmental protection sector (EPS) in China has gradually developed from a sector with weak backward and strong forward linkages to a sector with strong backward and weak forward linkages from 2002 to 2015; however, in 2017 and 2018, the EPS returned to a sector with weak backward and strong forward linkages. At the provincial level, the EPS used to be a key sector with strong backward and forward linkages. The connection between the finance sector and the EPS rose first, then declined in the country and the Zhejiang province; Guangdong had a similar evolution in the former period, but it had a rising trend in the latest year. The findings provide insights for further promoting the support from the finance sector to the environmental protection activities.

Keywords: green finance; environmental protection sector; industrial linkage analysis; input–output analysis (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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