Unlocking Sustainable Growth: The Transformative Impact of Green Finance on Industrial Carbon Emissions in China

Xi Zhao (), Siqin Zhang, Najid Ahmad, Shuangguo Wang and Jiaxing Zhao
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Xi Zhao: School of Economics and Management, Hefei University, Hefei 230601, China
Siqin Zhang: School of Economics and Management, Hefei University, Hefei 230601, China
Najid Ahmad: School of Business, Hunan University of Science and Technology, Xiangtan 411201, China
Shuangguo Wang: Business School, East China University of Science and Technology, Shanghai 200237, China
Jiaxing Zhao: School of Environmental Engineering and Science, Nanjing University of Technology, Nanjing 211816, China

Sustainability, 2024, vol. 16, issue 18, 1-21

Abstract: This study investigates the crucial role of green finance in addressing the imperative of reducing industrial carbon emissions for a sustainable global economy. Encompassing facets, such as green credit, insurance, investment, and governmental help for growth in green businesses. Our research on the strength of a comprehensive dataset covering China’s 30 provinces between 2010 and 2019 employs a fixed-effects regression and heterogeneity assessment, revealing an inverse association between green finance and industrial carbon emissions. This verifies the notion that green finance serves as a deterrent to carbon emissions from the industrial sector. According to the results of this study, green financing can significantly lower the CO 2 emissions from industries, which in turn can lead to an enhancement in environmental quality. Notably, our findings revealed substantial regional variations in this relationship. By proposing actionable recommendations, we advocate strategies to address regional disparities, standardize measurement protocols for green finance, optimize the environment for technological innovation, and realize industrial structures. By acknowledging these nuanced dynamics, our study not only contributes to the understanding of the impact of green finance but also offers targeted solutions to foster high-quality sustainable development in China, ensuring a more effective and comprehensive approach to mitigating carbon emissions in the industrial sector.

Keywords: green finance; industrial carbon emissions; entropy method; fixed-effects model; heterogeneity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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