Capitalizing on sustainability: China's green finance strategy for achieving environmentally resilient wastewater treatment

Muhammad Saeed Meo, Younes Ben Zaied, Sahar Afshan and Alvena Anees

International Review of Economics & Finance, 2025, vol. 101, issue C

Abstract: In China, wastewater management is becoming a more prominent concern due to the country's continuous industrial and urban development. The massive amounts of wastewater produced may threaten water resources and ecosystems. Therefore, innovative policies are crucial to enhance the wastewater treatment process and its infrastructure to secure sustainable water management. Hence, this study explores the asymmetric impact of green finance and other control variables like industrialization, environmental technology, and innovation in renewable energy on wastewater treatment in China. Using monthly data from January 2008 to December 2021 and an innovative nonlinear ARDL (NARDL) approach, the study confirms the significant positive impact of green finance, industrialization, environmental technology, and innovation in renewable energy on wastewater treatment. The robustness of the NARDL findings is being assessed using a novel multivariate quantile-on-quantile approach, which yields similar results, confirming the consistency of the findings. Furthermore, the findings highlight asymmetric associations among the variables, providing insightful policy implications for achieving SDG 6.

Keywords: Green finance; Wastewater treatment; NARDL approach; Industrialization; Environmental technology innovation (search for similar items in EconPapers)
JEL-codes: F65 Q01 Q53 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:101:y:2025:i:c:s1059056025003363

DOI: 10.1016/j.iref.2025.104173

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