Assessing the impact of green finance on sustainable tourism development in China

Abstract

The escalating urgency to address environmental degradation and promote sustainable development globally has emphasized the critical role of Green Finance (GF) in fostering responsible practices across industries. The tourism sector has drawn significant attention due to its substantial environmental impact, necessitating the implementation of robust financial mechanisms to mitigate its ecological footprint. China, recognized as a key player in the global tourism arena, the convergence of rapid economic expansion and the imperative for environmental conservation presents a distinctive set of challenges and opportunities. The study employed the Fuzzy Analytic Hierarchy Process (AHP) and Fuzzy Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methodologies to systematically evaluate the impact of GF. The findings of fuzzy AHP indicate the critical role of environmental sustainability measures (GF2) as the topmost impacting factor. This refers to the practice of utilizing financial mechanisms and instruments to support initiatives that promote environmental conservation, minimize ecological footprints, and foster sustainable development. While financial allocation and effectiveness (GF1) and policy and regulatory framework impact (GF4) also hold significant importance in shaping sustainable tourism development. Moreover, the results of fuzzy TOPSIS identified top strategies such as green bond innovation for ecosystem regeneration (S1) and circular economy integration (S4), which can play a significant role in promoting sustainable tourism practices by facilitating initiatives aimed at ecosystem regeneration and integrating circular economy principles into the tourism industry.