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Economic Change and Restructuring

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01-04-2024

Paths to sustainable development in China: why green finance and green technology matter?

Authors: Xiaomeng Zhao, Kangyin Dong, Jun Zhao, Qingzhe Jiang

Published in: Economic Change and Restructuring | Issue 2/2024

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Abstract

Green growth brings new requirements for sustainable development, but few articles have considered this issue from the perspectives of green technological innovation (GTI) and green finance (GF). To address this gap, our study explores the potential role of green growth in terms of both GTI and GF using data from 30 Chinese provinces over a 15-year period, from 2004 to 2018. The study also explores asymmetry and heterogeneity and conducts synergistic effect analysis. The findings are as follows: (i) the effects of GTI and GF on green growth are both positive during the observation period, indicating that GTI and GF contribute significantly to the development of green growth; (ii) substantial heterogeneity and asymmetry exist in the impacts of GGI and GF on green growth. Specifically, the impacts of GF and GTI on green growth in the middle-eastern region are significantly greater than those in the western region, and the promotion effect of GF and GTI on green growth is most prominent at the 10th quantile; and (iii) the synergistic effect of GTI and GF has a significant positive effect on green growth. However, it is worth noting that synergies have a smaller impact on green growth than each indicator alone. Based on the above three findings, we propose corresponding policy recommendations to achieve the purpose of green growth.

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Title: Paths to sustainable development in China: why green finance and green technology matter?
Authors: Xiaomeng Zhao
Kangyin Dong
Jun Zhao
Qingzhe Jiang
Publication date: 01-04-2024
Publisher: Springer US
Published in: Economic Change and Restructuring / Issue 2/2024
Print ISSN: 1573-9414
Electronic ISSN: 1574-0277
DOI: https://doi.org/10.1007/s10644-024-09647-4

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