Green finance and innovation input: the promoters of carbon neutrality in China

Song Gao, Yating Zhu and Adelina DUMITRESCU Peculea
Additional contact information
Song Gao: Wuchang University of Technology, China
Yating Zhu: Wuchang University of Technology, China
Adelina DUMITRESCU Peculea: National University of Political Studies and Public Administration, Romania

Theoretical and Applied Economics, 2024, vol. XXXI, issue 4(641), Winter, 31-52

Abstract: The purpose of this paper is to examine whether green finance and innovation are the drivers of carbon neutrality in China. In this study, a time-varying parametric vector autoregressive model with a stochastic fluctuation term is used to fully examine the evolving relationships among green finance, inputs for innovation, and the process of achieving carbon neutrality. The findings from the empirical research indicate that the advancement of green finance provides a consistent and enduring benefit to the ongoing process of carbon neutralization, while increasing innovation input can also achieve this positive contribution, but the impact is not as strong and sustainable as that of green finance. Moreover, in addition to the direct effects mentioned above, the results of this paper also demonstrate the positive contribution of increased innovative inputs to the development of green finance, and the tendency of this effect to expand in the future as time progresses. Against the backdrop of climate change, which poses a serious challenge to global development, the findings of this paper provide some practical insights into how China can achieve its carbon neutrality goal through the development of green finance and increased investment in innovation.

Keywords: innovative inputs; green finance; carbon neutrality; China; time-changing. (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://store.ectap.ro/articole/1784.pdf (application/pdf)
http://www.ectap.ro/articol.php?id=1784&rid=157 (text/html)

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:agr:journl:v:xxxi:y:2024:i:4(641):p:31-52

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Mircea Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu ().