Green Fund Research Articles

Research on Green Finance Supporting Green and Sustainable Development of Railway Enterprises

In the process of rapid industrialization and urbanization in China, there is a strong demand for energy, while carbon emissions have not yet reached their peak. As an important market-incentivized environmental policy tool, green finance plays an increasingly important role in the process of carbon neutrality. The railway is the backbone of the transportation system, and a complete green finance application model has not yet been formed in its green development process. This article focuses on the impact of green finance on railway enterprises, analyzes the challenges and necessity faced by the development of green finance in railway. It also explores the green and sustainable development methods of railway enterprises, analyzes the application of green financial tools in enterprises, and proposes exploration and expansion suggestions from the development path and mechanism of green finance in railway enterprises. The study has shown that the main sources of green funds for railway construction come from green loans and green bonds. The construction of a green transformation plan takes green funds as an important innovative financing method. In the railway industry, enterprises innovate and develop financial service supply side reforms through green insurance and green leasing, and apply carbon trading and related financial derivatives to obtain green development benefits. Carrying out green finance in the railway industry can optimize financing structure, broaden financing channels, reduce the overall financing costs, and guide funds to clean, science and technology and other key areas, which is of great significance to support the high-quality development and green upgrading of the railway enterprises.

Modeling the Nexus between geopolitical risk, oil price volatility and renewable energy investment; evidence from Chinese listed firms

Improving energy efficiency and investing in renewable sources are key influential factors that may lead to sustainable results from climate change policies. Using the data from Chinese listed companies, this study intends to find the impact of green financing, oil price volatility, and geopolitical risk in dealing with renewable energy investment. Therefore, this study used OLS and two-stage IV-GMM estimating methods considering direct and indirect relationships between the variables of interest. Similarly, this study also uses the advanced series of estimators in which AMG and CCE-MG estimators are being utilised to validate further. This research confirms the importance of green funding and environmental taxes in encouraging investment in renewable energy sources. According to Heckman's two-stage model with endogenous effects on the Chinese economy, geopolitical risk affects green investments in both the short and long term. Further, the analysis bolsters the connection between green financing and renewable energy investment while validating the moderating function of green regulations. The research suggests that China should prioritize the growth of eco-friendly businesses so that investments in renewable energy sources become mainstream. By integrating theoretical and empirical findings, the study has helped policymakers to make better decisions when developing and implementing environmental initiatives.

The role of technological innovation in enhancing resource sustainability to achieve green recovery

This research employs the CS-ARDL approach to explore the intricate connection between patent applications and fossil fuel consumption across high-income and non-high-income countries from 2000 to 2022. In high-income nations, there is a notable reduction in consumption, indicative of their emphasis on innovation and environmental commitment. Conversely, non-high-income countries experience an uptick in consumption, primarily attributed to economic growth and resource limitations. While factors such as urbanization, industrialization, and Foreign Direct Investment (FDI) exert influence, their impact on steering sustainable energy practices remains limited. The bidirectional causal relationship between fuel use and patents underscores their dynamic interaction. Policy recommendations advocate for supporting green startups, fostering sustainable cities, and digitizing green finance in high-income countries. On the other hand, non-high-income nations are advised to concentrate on green education, importing technology, implementing green patent regulations, and establishing local green funds to expedite progress.

Style Drift and Performance Evaluation of Green Funds in China

Based on data of China's open equity and partial equity hybrid green funds from 2018 to 2022, this paper conducts the sharp style analysis model to construct green fund style drift indicator, and apply the TM model to construct stock selection and timing indicators. Moreover, this paper constructs a panel fixed-effect model to empirically analyze the impact of green fund style drift, stock selection and timing on green fund performance. This research finds that there is a drift of investment style in green funds. Such style drift and timing have a negative impact on the performance of green funds. Stock selection has a significant positive impact on green funds. Furthermore, this research introduces style drift, stock selection and timing indicators into green fund performance evaluation, and use principal component analysis method to build a green fund performance-evaluation system. Then, this paper applies the rating system to the existing green fund market and effectively supplements the existing rating system.

Research on the Development of Green Finance Policies in China -Based on Policy Data from Beijing

With environmental problems being severer these years, developed countries first started to find out possible solutions. In 2015, after thousands of tries from various aspects, United Nations Climate Change Conference proposed The Paris Agreement in which governments started to pay great attention to the concept of green finance. China has shown her determination in process of green finance development and released wide-ranged green finance policies for different areas. In 2016, the Chinese government proposed Guiding Opinions on Building Green Financial System in which made a comprehensive and detailed plan for green finance developing. Provinces and cities followed the step of central government and issued relative policies in recent years. This article based on green finance policies in Beijing and analyzed the components and tendency of policies. It is apparent that the proportions and tendencies of various policies approximately fit the proportions and development of different financial instruments. While there exists disproportion in existing green finance system in China. Green credit accounts for the largest part and is advanced even comparing with developed countries. Green fund and green insurance are relatively underdeveloped and deserved to be improved in future. The Chinese government should consider new methods and implement instruments to deal with the recent recession and worldwide financial shocks. Comprehensive green finance policy system is decisive and plenty of foreign new financial products should be imported.

Sustainable Financing in Developing and Emerging Countries: A Bibliometric Analysis

Sustainable financing is crucial because it promotes economic development that respects environmental limits and enhances social well-being. By directing capital towards projects and initiatives prioritizing sustainability, developing and emerging economies can ensure that resources are used efficiently and responsibly for balanced and resilient economic growth. This study analyzes scholarly articles from the Scopus database to understand research patterns, geographical trends, collaboration links, and future policy implications of sustainable financing for emerging and developing economies. The research trend of sustainable financing has gained momentum in recent years for emerging economies. The leading contributors included Italy, India, China, and the UK, with Italy having the most papers and citations. Both developed and developing countries collaborated on sustainable financing research. The keyword trends reveal that impact investing was popular in the earlier period, while sustainable finance became more popular later. The thematic map shows that research on sustainable financing primarily covers themes related to sustainable activities that promote projects and companies that positively impact the environment and society. The study's recommendations emphasize the need for policymakers and regulators to conduct in-depth research into green funding, measure the impact of socially responsible investing, prioritize the development of robust infrastructure for sustainable financing, and expand climate financing initiatives.

Green Financing for Sustainable Development in Infrastructure Projects in Kenya

Transitioning into a decarbonized economy requires an unprecedented level of new capital investment, particularly in the form of green finance. Market and regulatory trends indicate that there is an increased interest in green and sustainable finance among investors and policymakers. However, capital mobilization for green investments has been constrained by microeconomic obstacles including maturity mismatches between long-term green investments; the typically short-term time horizons of investors and disintegrated financial and environmental policy approaches. It’s against this backdrop that the study intended to assess the green finance trends, green finance instruments and the challenges on green finance adoption.The study adopted desk review also known as Meta-analysis method to extract information concerning green finance trends, instruments and adoption challenges. The study established that to achieve sustainable development goals (SDGs), its necessary to open-up green projects and scale up the financing of investments that provide environmental benefits through innovative financial instruments and new policies such as green bonds, green banks, carbon market instruments, fiscal policy, green central banking, financial technologies and community-based green funds. However, Financial institutions show more interest in fossil fuel projects than green projects because of the low returns and risks associated with green investment compared to brown investment. To reduce the risk of green investment and increase the rate of return to the investors, the creation of green credit guarantee schemes and tax return on revenue generated from the green energy spillover effect is necessary. In conclusion green finance market is well structured in developed economies unlike developing economies due to underdeveloped capital markets, regulatory gaps and unstandardized green taxonomy.Thus the study recommends the development of green finance database and incorporation of green agenda in public policy institutions’ mandates and procurement;Standardization and information disclosure regarding Green investment risks, green taxonomy and commoditization of environmental factors into tradable assets; Raising awareness; Offering tax incentive on green projects; Developing Carbon Capital Markets; Stock Trading of Green finance products; Strengthen the social responsibilities of investors and Technology adoption.

Unlocking Sustainable Horizons: Explaining The Role of Green Finance in Advancing Sustainable Construction Practices among Building Professionals

Green finance has become essential in the twenty-first century, not only for environmental science but also for business. The current study aimed to determine how green funding contributes to the promotion of green construction. Moreover, to discover the factors and challenges hindering the relationship between Green Finance and Sustainable Construction. In addition, it provides strategies for improving sustainable construction through green finance. It was quantitative research. The study's design was descriptive, and the survey method was adopted to collect data. A causal-comparative design was utilized to find relationships between study variables. Green financing was the independent variable, and sustainable construction was the dependent variable. This study considered three important professionals: Building Contractors, Consultants, and Developers from Lahore, Punjab. A close-ended questionnaire comprised of a five-point rating scale was used as a data collection tool. The reliability and validity of research instruments were also determined. The researcher collected data through personal visits using questionnaires. Before collecting prior appointments were made, the purpose of the study was intimated to respondents, and the confidentiality of responses was assured. Data was analyzed through descriptive statistics, for example, Mean, Standard Deviation, and T-Test. The results of the study show that respondents had an overall favorable opinion of green financing, acknowledging both its availability and investors' interest in sustainable projects. A favorable outlook is further enhanced by favorable loan terms. Nonetheless, there are still issues facing the sustainable construction industry, with low initial costs and ignorance being the main barriers. Research has also made recommendations for future studies that aim to close the finance gap for green projects. It might also assist with the responsibilities that each party involved in the improvement of green finance must carry out.

Towards sustainable development: Investigating the effect of green financial indicators on renewable energy via the mediating variable

Green financing is essential because it guarantees that initiatives that seek to reduce the world's reliance on fossil fuels receive the necessary funding to be successful. Green financial metrics can be simultaneously made possible by specialized technological innovation and natural resource rent, thereby encouraging the adoption of sustainable energy. In this paper, we investigate the mediating mechanisms underlying the relationship between green financial indicators and renewable energy consumption RNEC and we contribute to the ongoing discussion surrounding this relationship. Our observational example is derived from data collected for 66 countries between 2004 and 2019 using a panel threshold regression model defined with the difference generalized method of moments (GMM). We find that green funding initiatives have accelerated the adoption of renewable energy sources by encouraging increases in the proportion of renewable energy in the fuel supply. Multiple analyses of reliability corroborate the existence of this link. Green funding has been shown to have an encouraging effect on the transition to renewable energy, and our findings indicate that technological advancement and natural resource leasing serve to mitigate this effect. To assist policymakers in reducing the world's reliance on polluting energy, our study demonstrates how green financial markets can be established through improved technological innovation and natural resource management.

Exploring role of green financing in blockchain markets for climate change mitigation in China.

This study explores the potential of green finance as a strategic method to addressing climate change mitigation in China's blockchain industry. This research methodically analyzes a large dataset collected from many sources across the period between 1999 and 2020. Using a mixed approach of quantitative research and qualitative case studies, this study delves into the tangled web of relationships between alternative finance sources for green initiatives and the use of blockchain technology to promote more environmentally friendly business practices. The results provide light on how green finance and blockchain technologies might work together to boost China's climate change mitigation efforts, revealing fresh insights into the possible synergies and obstacles that erupt from this intersection. In response to the worsening climate problem, there is a pressing need for unconventional methods of financing that can lead holistic sustainable growth. Concurrently, blockchain technology's disruptive potential reverberates across numerous sectors. However, research on blockchain's potential for combating climate change, especially in conjunction with green funding systems, is still in its infancy. Intrinsic interest has motivated this study, which provides a new viewpoint on paths that might transform climate change mitigation in China by mapping the unexplored territory at the intersection of the green finance and blockchain sectors. This research hopes that by examining this interface, it will shed light on the hidden opportunities presented by the combination of green financing and blockchain innovation, allowing for more well-informed and effective decisions to be made in support of environmentally sustainable futures.

The Inspiration of the International Carbon Market for the Development of Green Finance in China

After introducing the Clean Development Mechanism in 2004, China combined foreign carbon market experience and actively carried out pilot carbon market construction in selected provinces and cities. In September 2020, President Xi Jinping announced Chinas dual carbon goal for the first time at the 75th United Nations General Assembly general debate. The goal is to strive to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060. Although seven regional carbon market pilots have been launched in the past three years and experience has been accumulated, Chinas experience in using market-based climate policies is still limited. Establishing a unified domestic carbon market and making it a major tool for Chinas emission reduction and response to climate change requires continuous learning and drawing on the successful experience of international carbon markets, especially lessons from failures. The international carbon market provides important inspiration for the development of green finance in China. By establishing a carbon market, China can achieve carbon pricing, promote the growth of green funding, strengthen financing uphold for low-carbon projects, and contribute to addressing climate change challenges and achieving sustainable development goals.

Returns behavior of ESG ETFs in the COVID‐19 market crash: Are green funds more resilient?

AbstractThis study explores the importance of environmental, social, and governance (ESG) performance in explaining the returns and volatility of returns of exchange‐traded funds (ETFs) during the market crash induced by the COVID‐19 pandemic. The study uses an unbalanced panel of monthly data during the period 2005–2021 for a diversified sample of 160 iShares Morgan Stanley Capital International conventional and ESG/socially responsible investment (SRI) equity funds. To obtain robust results, a variety of analyses are conducted, including multiple panel regressions based on one‐way clustering, standard error estimates obtained from different covariance matrix estimators that are heteroskedasticity and autocorrelation consistent, simultaneous quantile and inter‐quantile regressions, weighted least square regressions with alternative weights for the regression coefficients, and tests of coefficient equality with bootstrapped standard error of difference in subsample regressions. All the sensitivity analyses give similar results, confirming their validity. The results provide strong evidence for the resilience of sustainable funds during the crash, with ETF returns showing persistence during the market downturn. This study suggests that ESG/SRI investments may help ETFs to outperform their counterparts, indicates that sustainability investments matter in times of crisis, and implies the adoption of strategies that promote sustainable investment development.

Can green finance effectively mitigate PM2.5 pollution? What role will green technological innovation play?

This study employs panel data encompassing a time frame from 2012 to 2020, collected from 30 provinces in China. By employing a geographic Durbin model and introducing green technological innovation as an intermediary variable, the study explores the relationship between green funds and PM2.5 levels on a spatial scale. The research takes a spatial perspective to explore the links between green finance and PM2.5 emissions, with a specific focus on the intermediary role played by green technology innovation. The findings offer comprehensive insights into enhancing air quality in China, promoting the country's transition towards sustainability, improving the overall human living environment, and generating novel ideas for tackling air pollution challenges. The findings of this study are as follows: (1) The progress of green finance proves to be an effective means of reducing local PM2.5 emissions. Additionally, it generates spillover effects on neighboring regions, promoting the growth of green finance and consequently leading to a decrease in PM2.5 emissions in adjacent areas. (2) In the study exploring the relationship between green financing and PM2.5, green technological innovation plays a crucial mediating role. By efficiently allocating financial resources during China's pivotal green revolution phase, green finance offers funding support to enterprises for the advancement of green technology. This, in turn, contributes to the reduction of PM2.5 emissions. As a consequence, this leads to a decline in energy consumption, pollution emissions, and PM2.5 levels. Additionally, with the continuous improvement in green technological innovation, the reverse effect between green finance and PM2.5 is becoming stronger and stronger. (3) The relationship between the two has obvious regional heterogeneity between the north and south regions of China.

North–South Differences and Formation Mechanisms of Green Finance in Chinese Cities

This paper discusses the north–south difference in green finance in China and its internal mechanism. The entropy method is used to measure the green finance level in China from 2000 to 2022 through seven dimensions of green credit, green investment, green insurance, green support, green bonds, green funds, and green equity. The Dagum Gini coefficient and variance decomposition are used to reveal the differences and sources from the perspectives of north–south space and structure. The QAP method is utilized to explore formation mechanisms of differences. Research findings show that the overall level of green finance is not high, with the southern level higher than northern one. However, spatial differences in the green finance index have slightly narrowed, with regional differences being the major contributor to uneven distribution. Secondly, the difference in green funds is the main structural source of the difference in green finance, and the effect of the difference in green bonds and green funds on the difference in green finance increases from north to south, while the effect of the difference in green credit and green support decreases from north to south. This study will enrich the assessment indicator system, providing a reference for green finance differential situations and collaborative development strategies.

Promoting sustainable fossil fuels resources in BRICS countries: Evaluating green policies and driving renewable energy development

The central purpose of this paper is to evaluate the impacts of green monetary and fiscal policies on the sustainable development of fossil fuels resources in BRICS countries, through the analysis of data spanning from 1995 to 2021 and the ARDL- PMG technique. The research results confirm that green monetary policies have a greater impact on the development of clean energy compared to green fiscal policies. Additionally, the economic freedom index, green parts trade, and innovation index are components that exhibit positive effects on the development of renewable energy consumption in BRICS countries. However, the research findings also indicate an adverse effect of information and communication technology development on the greening of natural resources in BRICS countries. Based on the findings, the paper proposes several recommendations, which include reforming the green tax system, developing green financing markets, and establishing a local green fund to promote local green power generation projects.

An unexpected contribution of higher education towards the innovations: the moderate role of green technology.

Understanding how environmental restrictions affect the relationship between economic stability and unbalanced technical innovation is crucial for optimizing environmental and financial policy frameworks in developing nations to achieve sustainable development goals (SDGs). Understanding the driving effect of green funding on green development is vital for promoting economic transformation and achieving long-term green growth. Green growth is one of the most exciting new strategies for sustained economic expansion. Despite environmental technology's significance, further study is required to ascertain whether and how environmental technologies affect green development. Therefore, the purpose of this study is to examine how environmental technology may promote green growth in the G7 by reducing reliance on renewable and non-renewable energy sources. Investing in higher education is the most powerful thing a society can do intellectually if it is serious about attaining sustainability by applying skills, providing consulting, delivering training, and disseminating knowledge. Thus, the paper analyzes how the G7 countries' pursuit of green economic development is affected by economic policy uncertainty, investments in renewable energy, human capital, and health expenditure. The G7 economies' panel data from 2005 to 2021 was used to verify the assertions using the GMM estimate. Additional generalized method of moment (GMM) tests, including a one-step test and a two-step test with a robust check, are used to estimate the variables in this study. The research shows that economic policy uncertainty and health expenditure have negative effects on green economic growth, whereas investments in renewable energy, green finance, human capital, and an ageing population have favorable effects. The research findings direct the formulation of policy implications that would maintain the role of green financing as a growth engine in the Chinese economy.

Green finance development and resource efficiency: A financial structure perspective

Resource utilisation efficiency promotion is a crucial focus of green economic recovery, and the development of green finance could ease the liquidity constraints of this process. This paper examines the nexus between green finance and resource utilisation efficiency from a financial structure perspective using panel data from 2008 to 2021. Our findings indicate that the size of green finance could improve resource utilisation efficiency through green technology developments. Regarding green financial structure, direct finance plays a greater role than indirect finance. Additionally, the implementation of green finance policies can significantly facilitate the enhancement of resource utilisation efficiency. For policymakers, accelerating the development of green finance through fiscal measures should be prioritized. Meanwhile, optimising green financial structures through building a market-based green financial system is necessary. Finally, ensuring that green funds flow into the development of green technology should also be considered.

Resource potential and sustainability of recreational soils in the city of Uralsk

The study of the resource potential and sustainability of soils in the green areas of the city of Uralsk is necessary to determine further steps to preserve the green fund. The recreational load was studied on the territory of the Kirov Park., Zh. Moldagaliev, Isatai and Makhambet, as well as the embankment of the Chagan and Ural rivers. In soils, such characteristics as moisture content, density, water permeability, organic carbon and salinity were studied. Soil water permeability was studied by the tube method. The density of recreational soils in the city of Uralsk was studied by the cutting ring method. Additionally, studies were carried out on the buffer capacity, salinity and organic carbon of soils. These studies were carried out by conventional methods. The results of comparing data on water permeability, density, salinity and resource capacity show a tendency for their condition to deteriorate at sites experiencing a constant recreational load. The recreational load is especially critical in the territories of public gardens Zh. Moldagaliev, Isatai and Makhambet and the embankment of the Ural River in the area of the Stela memorial complex.

Briefed on the development and progress of CCUS projects in China, USA, Western Europe, Russia, Norway, India, and Indonesia: a journal review

The global commitment to manage climate change issues is getting stronger and stronger. Therefore this review is carried out with the objective to obtain recent progress of efforts on emission control and handling through CCUS by various countries around the world. This review is carried out to highlight the development of carbon capture utilization and/or storage (CCUS) in China, the USA, and India, as these countries are known to be the most energy consumption countries. Its campaign to reduce emissions will contribute significantly to the effort of managing the global warming issue. The method used in this study is a literature review on the policies, studies, and projects mainly in China, and several other countries for comparison. The review found that although China is relatively late in doing such activities on climate change, but the progress is significantly faster than the others. The numbers of studies and patents are much higher than other countries, and the central and local governments issued a number of policies to help encourages the industries. The USA is known as one of the leading countries implementing CCS/CCUS and still creating incentive policies. European, Russian, and Indian countries pay serious attention to this effort and implement it while Indonesia as a non-industrial country is catching up.. From this literature research, it can be concluded that the technology for implementing CCUS is still at a high cost so policy and government funding support is needed as well as non-traditional sources of capital source such as green funding, carbon trading, etc.

The Nexus Between Green Entrepreneurship and Sustainable Development: An Econometric Study

Rising industrialization helps with economic growth and is responsible for environmental pollution as well as global warming. Here, green entrepreneurs play a significant role in the reduction of this environmental pollution and sustainable development. Although the study of green entrepreneurship and its relationship with economic, social and financial growth is limited and at a nascent stage. Therefore, this study examines the relationships among green entrepreneurship and credit policy, financial development, sustainable development goals and trade openness using the ‘Environmental Kuznets Curve (EKC) hypothesis’. From this perspective, 114 countries worldwide are considered and subdivided into three sub-categories, including lower-income, middle-income and higher-income countries, based on panel data collected from the World Bank’s database. Descriptive statistics, a cross-sectional dependence test, a unit root test, long-run estimations and a multicollinearity test have been used for the data analysis. The findings of the study show that green entrepreneurship decreases environmental pollution throughout the world and enhances financial development and credit policy around the world. Likewise, income per capita helps with credit policy, economic development and green entrepreneurship. Moreover, environmental factors are positively associated with financial development and sustainable development goals. Finally, the EKC hypothesis supports the relationship for all variables throughout panel and subpanel data. Additionally, these findings could help policymakers improve policies for managing environment-friendly products and enhance green funding, considering clean investment and other green aspects of sustainable development.