Green Development Index Research Articles

Can China's low-carbon city pilot policy facilitate carbon neutrality? Evidence from a machine learning approach

This study examines China's 2060 carbon neutrality goal using the Double/Debiased Machine Learning (DML) model to analyze the causal effects of the low-carbon city pilot (LCCP) policy on urban carbon neutrality in 277 Chinese cities from 2008 to 2017. A series of empirical studies and robustness tests show that the LCCP policy has promoted carbon neutrality in Chinese cities. Through causal mediation analysis, this study identifies potential mechanisms, including increasing green credit, stimulating green innovation, optimizing industrial structures, and strengthening environmental governance. The LCCP policy has a varied impact on cities, depending on their resource endowments, geographical locations, and sizes. Furthermore, this study develops a green development index to assess the causal impact of the LCCP policy on green development, suggesting that it does not hinder the city's economic growth but rather enhances its quality and sustainability. This study provides empirical evidence for regional environmental governance and improvement strategies and offers valuable insights into China's transition from prioritizing rapid economic growth to achieving high-quality development.

Measurement of regional green finance development and its coordination with economic development: a study on the Yangtze River Delta region of China

The green transformation of industry and sustainable economic development both require considerable investment. In this regard, green finance that is compatible with economic development can help cope with the massive demand for capital. Taken China’s Yangtze River Delta (YRD) as an example, this study is to measure the coordination degree between green finance and economic development. First, the concept, content and scope of green finance is defined based on the new financial regulation mechanism. Second, a green finance measurement index is built to calculate the green finance index for 30 Chinese provinces by the CFA test. Third, based on the economic structure index, an economic development index is built. Testing the rationality of green financial index and the economic development index, this paper finally measures the degree of coordination between green finance and economic development in the YRD. The results reveal that, first, green finance is a financial instrument that integrates financial industry development, environmental improvement, and economic growth. The measurement of the green financial development index includes the sum of regional green credit, green investment, green securities, and green insurance. Second, after years' development, the comprehensive score of YRD’s coupling coordination degree exceeds 0.8 in 2020, which shows a high level of coordinated development between green finance and economic construction. However, there is a 2-year timing effect between the economic development and green finance index increase, which reveals that green finance development in the YRD requires further policy guidance and support. This study’s findings can provide a theoretical reference and case support for the further development of green finance and related policies in China.

The impact of the Belt and Road Initiative on cities’ capacity for green development—based on data from 280 Chinese cities

ABSTRACT Encouraging the green development of the Belt and Road Initiative (BRI) is a significant step for mankind to proactively address climate change and maintain the global ecological environment. This paper analyses the impact of the BRI on the green development capacity of Chinese cities along the route using the difference-in-differences (DID) model. The results show that, first, the BRI can effectively improve the green development capacity of cities along China’s routes. Both the level of financial development of cities and regional fiscal revenues impact the green development index of cities. Second, the BRI has been more effective in enhancing green development capacity in the Maritime Silk Road region, in cities at lower administrative levels and in resource-based cities. Third, the BRI can enhance the green development capacity of cities by increasing regional revenues, the use of foreign investment and import and export trade.

Can green finance reduce carbon emission? A theoretical analysis and empirical evidence from China.

As an important way for China to achieve its dual-carbon goal, green finance has become the foundation for promoting high-quality economic development in China. In order to clarify the mechanism of green finance on carbon emissions, this paper puts green finance into the economic model and deduces the relationship between green finance and carbon emission reduction. This paper is based on the panel data of 30 provinces in China (excluding Tibet, Hong Kong, Macao, and Taiwan) from 2008 to 2019, using the individual fixed effect model, dynamical model, mediator model, and SDM model to study the impact of green finance on carbon emissions and its impact path of upgrading of the industrial structure and the development of science and technology based on the measurement of the green finance development index of each province by the entropy method. The findings show that the development of green finance can reduce carbon emission significantly, which can be sustained until at least the third phase and generates spatial spillover effects; regional heterogeneity analysis finds that the development of green finance shows geographical discrepancies: compared with the eastern and western regions, the development of green finance in central region can reduce carbon emissions more significantly; not only can the development of green finance directly reduce carbon emission, but also through the upgrading of industrial structure and technological innovation. The research not only provides a new perspective and supplementary empirical evidence for understanding the carbon emission reduction effect of green finance, but also offers some useful references for green finance to contribute to carbon emission reduction.

Assessing the impact of green finance on financial performance in Chinese eco-friendly enterprise

This study pioneers the construction of a regional Green Finance Development Index, meticulously examining the significant influence of green financing on the financial performance of ecologically responsible enterprises within the intricate landscape of China. Demonstrating a profound correlation, green finance emerges as a pivotal incentive, increasing the economic expertise of environmentally conscientious firms through the strategic consolidation of capital and the consistent exchange of vital information. Leveraging empirical data from 2012 to 2022 and focusing on green-listed enterprises, the study analyzes the nexus between green financing and corporate financial competency by employing the GMM Model. Notably, the study highlights the pivotal role of Research and Development (R&D) innovation as a channel for the transformative impact exercised by green funding. Discerning insights surface in exploring heterogeneity, revealing a pronounced inclination of green financing towards strengthening clean energy firms and enterprises operating with diminished reliance on government subsidies. This empirical research enhances the scientific basis of the green finance approach and establishes a strong platform for making decisions, promoting the sustainable proliferation of green sectors and businesses.

The nexus between green finance and energy consumption in regional comprehensive economic partnership countries.

Green finance has been valued and promoted by Regional Comprehensive Economic Partnership (RCEP) countries for its attribute of supporting green and sustainable development. However, the fossil fuel-centric growth pattern poses a threat to the sustainable development of RCEP countries. The existing literature remains inadequate regarding the relationship between green finance and fossil energy consumption. An in-depth understanding and empirical examination of the nexus between green finance development and fossil energy consumption in RCEP countries is key to successful policymaking and sustainable development. This study proposes a theoretical framework for analyzing the nexus between green finance and fossil energy consumption. Then, a green finance development index is constructed by using the entropy weight method based on green credits, green securities, and green investments. By utilizing method of moment quantile regression (MMQR), panel data of 10 RCEP countries from 2008 to 2020 are investigated. The results demonstrate a strong nonlinear pattern of green finance's impact on reducing fossil energy consumption. Conventional finance and fossil energy consumption from the preceding period significantly promote fossil energy consumption, while green technology serves as a mitigating factor for fossil energy consumption. However, the impacts of education and environmental expenditure on fossil energy consumption are limited and inconsistent. Hence, the relevant practitioners, including governments and policymakers, are encouraged to collaboratively promote the green finance policies, and devise tailor-made strategies based on countries' features. Additionally, this study recommends that the RCEP countries incorporate research and development of green technologies, as well as environmental and educational expenditures, into the policymaking process.

Measurement of green development and influencing factors in emerging economies: the empirical evidence from BRICS

ABSTRACT This paper aims to construct a Green Development Index for emerging economies, focusing on the BRICS nations as the research subjects. The study measures the index of various indicators and explores the influencing factors from 2012 to 2021 using the entropy value method. The trend analysis indicates that the global level of green development is gradually increasing, albeit with significant fluctuations. China and Brazil lead with the highest levels of green development, while Russia consistently maintains a lower level. Regression results, in terms of estimated coefficients and statistical significance, suggest the greatest impact comes from industrial structure, followed by technological R&D, with human capital having the least impact. Implications are policy changes in emerging economies to enhance industrial structures, human capital, and sci-tech research.

The impact of digital financial development on the green economy: An analysis based on a volatility perspective

Without a doubt, green development is a consensus reached by most countries globally. However, detailed discussions on the impact of digital finance on green development remain scant among scholars. To address this gap, we first construct a Green Development Index for China. Utilizing provincial panel data from 2011 to 2019, we aim to evaluate the influence of digital finance on green development. Additionally, our research aimed to ascertain the ‘rebound’ effect of digital finance on green development, especially in terms of volatility. The results show that the development of digital finance has a positive impact on green development, but this impact is asymmetric, mainly exhibiting regional disparities and threshold effects. Moreover, digital finance can effectively suppress consumption volatility and the negative impact of green financial shocks on green development. Importantly, the smoothing effect of digital finance is particularly pronounced during downturn phases of the financial cycle. Further examination revealed the moderating roles of educational attainment, economic structure, R&D, and governmental intervention. Our findings underscore the pressing need for governmental authorities to prioritize economic transformation and R&D activities to amplify the synergistic benefits between digital finance and green growth. Concurrently, it's essential for governments to carefully evaluate their fiscal policies to ensure they do not inadvertently obstruct the path to sustainable green development.

Is e-commerce capable to promote mineral resources? Evidence for Belt and Road Initiative countries

This study examines the complex relationship between e-commerce and mineral efficiency in Belt and Road Initiative (BRI) economies from 2000 to 2021. Using the CS-ARDL methodology, it finds that a 1% increase in e-commerce market size corresponds to a 0.46% short-term and 0.59% long-term rise in mineral efficiency. E-commerce optimizes resource use through streamlined supply chains, reduced wastage, and digital transactions. Responsible expansion is crucial to avoid unintended resource consequences. Additionally, a 1% increase in the green development index leads to a 0.16% short-term and 0.26% long-term mineral efficiency increase. The adverse impacts of the consumer price index (CPI), foreign direct investment (FDI), economic uncertainty, and patent applications highlight resource allocation complexities. The study confirms causal reciprocity between mineral efficiency and e-commerce market size. Effective policies involve boosting ICT diffusion, encouraging patent commercialization, promoting green education, facilitating green utility imports, and integrating blockchain and fintech approaches.

Assessing the effect of green finance on energy inequality in China via household-level analysis

While previous research has investigated the determinants of urban–rural energy inequality (EI), the significance of green finance has rarely been examined. Using a comprehensive green finance development index and a Chinese provincial panel dataset, this research quantitatively investigates how green finance development impacts EI. Our empirical results reveal a significant U-shaped connection between green finance and urban–rural energy disparity, suggesting that moderate expansion of green finance can efficiently mitigate EI. In addition, this relationship is strongly pronounced in China's western region and is more prominently strengthened in provinces with higher energy activities and digital finance development levels but lower economic and social activity levels. These findings could be attributed to the nonlinear impacts of green finance on energy and industrial structure. Based on the findings, we propose several relevant policy recommendations to support China's plans for advancing the green economy and eradicating EI.

Green finance, economic growth, and carbon emissions: a PVAR analysis.

The study examines the relationship between green finance development, carbon emission intensity, and economic development in China's 30 provinces. The entropy approach is used to calculate the green finance development index, and a panel vector autoregressive model is established using this index along with economic development and carbon emission intensity. The study finds that green finance can promote economic growth and help achieve emission reduction objectives, while increasing carbon emissions can also promote economic growth. The study also highlights regional differences, with the economic growth of the eastern and central regions negatively correlated with carbon emissions after surpassing the inflection point of the environmental Kuznets curve. Additionally, the study suggests that there is still room for growth in green finance in the western region. The findings have important policy implications for China in developing targeted development strategies.

Assessment of spatio-temporal evolution trends and driving factors of green development in Harbin-Changchun urban agglomeration

As China has entered a new stage of high-quality development, clarifying the mechanism and spatial characteristics of green development for urban agglomerations are critical to sustainable development. Based on the data of 11 major cities in the Harbin-Changchun urban agglomeration (HCUA) from 2010 to 2020, this study constructs an evaluation system of green development index (GDI) is composed of four dimensions, i.e. urban green construction (UGC), industrial green development (IGD), resource and environmental carrying capacity (RECC), and technological innovation support (TIS). Furthermore, using the entropy weight method to obtain the weights of evaluation indicators. And then, the comprehensive index calculation is used to evaluate the GDI. The driving factors of each level of GDI are determined by the Pearson correlation coefficient. The results infer some novel findings as follows: (1) the overall tendency of the GDI of the HCUA has gradually increased from 0.358 in 2010 to 0.379 in 2020 which is at the average level. The dimension of TIS shows the highest rate of contribution while IGD and RECC show a fluctuating trend over the time window. (2) The GDI in the HCUA exhibits a patchy clustering differentiation feature that spreads from the central area to the surrounding areas with a “high in the south and low in the north” pattern. Specifically, Changchun, Harbin, and Daqing form an “inverted triangle” structure in geographical location to drive the green development of neighboring areas. (3) The core cities of the HCUA, Changchun, and Harbin, show a much higher level than the other cities. Jilin and Daqing are at the average level, and besides, the rest of the cities of GDI are at the poor level with significant fluctuations in ranking. (4) There are different driving factors between each level of GDI. For cities with good and average levels should focus on protecting resources and the environment. Meanwhile, cities with poor level of GDI need to improve IGD to optimize the urban green structure. Thus, it is suggested to strengthen the flow of factors and implement differentiated strategies to promote coordinated development and spatial clustering.

The impact of green taxation on green low-carbon development in Yangtze River Delta region of China-based on mediating effect model and spatial Durbin model.

Promoting green low-carbon development is an important task in the construction of ecological civilization of China. The leadership has proclaimed green low-carbon development as the top national priority for development. Green low-carbon economy has become the high point of global industrial competition. Green taxation, as a tool for environmental regulation, plays an important role in the construction of ecological civilization. Therefore, this paper investigates the impact of green taxation on green low-carbon development in the Yangtze River Delta (YRD) region of China, using data of 41 cities from 2011 to 2021 in the YRD region. We construct a green low-carbon development index with the combined weight CRITIC-entropy method, and employ a mediating effect model and a spatial Durbin model based on double fixed effects in this study, which intends to provide a theoretical basis for the establishment of a sound tax policy system that is conducive to the green low-carbon development. The results show that (1) there is an evident spatial dependence of green low-carbon development in the YRD region; (2) green taxation has a significant positive effect on green low-carbon development through rationalization of industrial structure and advance of industrial structure; and (3) the positive impact of green taxation on green low-carbon development in the region is characterized by spatial spillover and heterogeneity. Specifically, green taxation significantly promotes green low-carbon development in the core area, but such green taxation dividend has yet to be realized in the expansion area.

Empirical analysis of green finance and high-quality economic development in the Yangtze River Delta based on VAR and coupling coordination model

The Yangtze River Delta region is one of the most active regions in China’s economic development and financial innovation, and its green finance is at the leading level in the country. To promote the integrated development of green finance in China’s Yangtze River Delta and boost high-quality economic development, this paper uses the data of three provinces and one city in the Yangtze River Delta from 2010 to 2021, constructs the green finance development index and the high-quality economic development index by entropy weight method, and constructs the VAR model to analyze the interaction between the two. The coupling coordination model is used to analyze the coupling coordination degree between green finance and high-quality economic development, and the correlation between green finance and high-quality economic development is deeply analyzed by using the gray correlation method. Finally, the gray prediction model is used to predict the coupling coordination between green finance and high-quality economic development. The research shows that green finance and high-quality economic development have short-term mutual promotion effects, and the coupling and coordination are good, but there are regional differences. The overall degree of correlation between the two is medium to upper, and the interaction force is strong. From the forecast results, the coupling coordination and coupling priority of the Yangtze River Delta region show positive development, and Anhui Province has more room for improvement. Based on the above research, this paper proposes to establish a green finance integrated development mechanism to promote regional green finance synergistic development, promote green finance infrastructure interconnection to better realize resource allocation and information sharing, attract more professionals to participate in green finance innovation, and build a favorable external development environment for green finance.

Can green finance improve the financial performance of green enterprises in China?

This paper constructs a regional green finance development index to examine the impact of green finance on the financial performance of green enterprises in China. We find that green finance can significantly enhance the financial performance of green enterprises through capital aggregation and information transmission. In addition, R&D innovation acts as a bridge in the influence of green finance. According to heterogeneity analysis, green finance tends to contribute more to clean energy enterprises and enterprises with less government subsidies. The findings contribute to the scientific evaluation of green financing strategy and lay the foundation for the decision-making of promoting the sustainable growth of green industries and enterprises.

The Impact of High-Tech Industrial Agglomeration on China's Green Economy

Based on the panel data of 30 provinces in China from 2010 to 2020, the green economic development index of each province is calculated by the entropy method, and the Tobit model is used to explore the influence of high-tech industry agglomeration on the green economy. As far as China's current development is concerned, the agglomeration of China's high-tech industries plays a prominent role in promoting the green economy.The empirical results show that: (1) High-tech industrial agglomeration has a significant inverted "U" shape on the development of green economy. (2) The degree of effect of high-tech industrial agglomeration on different regions is heterogeneous; The impact of high-tech industrial agglomeration on the eastern and central regions showed a significant inverted "U" shape, and had no significant impact on the western region. (3) Analysis of control variables. This article adds a new variable, Education Cost. The results of the analysis are as follows：the level of financial investment and education investment have a positive impact on the green economy, while the level of foreign direct investment and urbanization have a significant negative influence on the green economic development.

Coupling and coordination between green finance and agricultural green development: Evidence from China

Agricultural green development is a path to low-carbon development, and green finance plays a crucial role in promoting agricultural green development. Studying the relationship between the two is important for achieving green economic growth. This paper uses data from the Yellow River Basin of China from 2010 to 2020 to construct a green finance and agricultural green development index using a combination weighting method based on game theory. A coupling and coordination model and a kernel density estimation method were used to analyze the trends of green finance and agricultural green development and the degree of coupling and coordination. The study found that the degree of coupling and coordination between green finance and agricultural green development in the Yellow River Basin has improved from "moderate disorder" to "basic coordination". The kernel density estimation results suggest that the coupling and coordination degree in the Yellow River Basin will gradually evolve toward "basic coordination" or even "good coordination". However, there are still room for development. We draw the conclusion that agriculture needs strong support from green finance to achieve green transformation. This can provide insights for the coordinated development of green finance and agricultural green development in emerging economies.

Green standard and green development: Theory and empirical evidence

This study uses panel data from China spanning from 1999 to 2019 to construct the green standard development index and the green development index using Principal Component Analysis and Entropy Method. The double fixed effect model examines the positive impact of green standards on green development and its heterogeneity. Then, the global Moran index and spatial Durbin model investigate spatial correlation and spillover effects. The results show that green standards have a positive influence on green development, particularly in terms of promoting green production and living. The influence of green standards on green development shows a decreasing trend from east, west and central regions. Both mandatory and recommended green standards have a positive impact on green development. Mandatory green standards have a positive impact on green production and living, but have a negative effect on green economy, while recommended green standards have no significant impact on production, living, and green economy. Furthermore, green standards promote green development by facilitating the diffusion of green innovation. In addition, both green development and green standards exhibit strong spatial autocorrelation. The positive spatial spillover effect of green standards on green development is greater than its direct effect.

Analysis of Green Development of Aquaculture in China Based on Entropy Method

China is the world’s largest producer and consumer of aquatic products. With the rapid economic development of our country and the great improvement of people’s living standards, people have put forward higher requirements for beautiful water ecological environments and high-quality aquaculture products, and promoting aquaculture green development has become an important initiative to promote high-quality sustainable development of aquaculture. Therefore, the assessment and analysis of the current green development level of the aquaculture industry have important practical significance for comprehensively grasping the current green development status of the aquaculture industry in China, purposefully breaking the development bottleneck, and promoting green and sustainable development of the aquaculture industry. This paper obtains comprehensive evaluation results of the green development of aquaculture in China from 2012 to 2021 by constructing a green development index system of aquaculture and applying the entropy method. The results show that the green development level of aquaculture in China has a fluctuating upward trend, with a good development momentum. The production and living standards of fishermen are important aspects that affect its development. In order to further promote the green development of aquaculture in China, countermeasures and suggestions are put forward from the following aspects: improving the green subsidy policy, improving the level of supervision and service, strengthening scientific and technological innovation and the transformation of scientific and technological achievements, and making full use of the unique advantages according to local conditions.

Measuring green development index and coupling coordination of mining industry: An empirical analysis based on panel data in China

Due to the quick adaptation of the mining industry and demand for the mining industry is growing due to the need for minerals and metals, green mining industry has earned much support. China has taken specific actions and made the advancement of green mining a crucial part of establishing an eco-society. Growth tactics utilized by traditional mining economies had negative repercussions, including resource depletion and deteriorating environmental conditions. For China, when formulating reasonable and scientific policies, a fair evaluation of the mining industry's level of green development has significant practical relevance. This study employed 16 common indicators divided into four categories: economical and intensive utilization, ecological environmental protection, scientific and technological innovation, safety and harmony, etc. The analytic hierarchy process (AHP) method and the entropy weight method (EWM) were used to reflect the relationship between indicators at different levels. In addition to the coupling of subsystems coordination model, which reveals the relationship between subsystems, scores of subindexes and weighted indicators are also derived. The empirical findings demonstrate that (1) despite non-cyclical fluctuations in the development of China's green mining industry, the overall index exhibits an upward trend from year to year; (2) the coordination of China's green mining industry subsystems is basically inconsistent, stage-wise balanced, and lacks precise coordination; and (3) the development of China's green mining industry is challenging, especially in the management and resto areas. Furthermore, the framework for green mining growth described in this study can be applied to other regions or sectors.