Effects of green finance and financial innovation on environmental quality: new empirical evidence from China

Figures & data

Table 1. Variables, sources, and data description.

Variables	Mean	Median	Maximum	Minimum	Std. Dev.	Definitions	Sources
CO2	15.67	15.79	16.29	14.93	0.481	CO2 emissions (kt)	WDI
GHGs	15.89	15.99	16.45	15.28	0.421	Total greenhouse gas emissions (kt of CO2 equivalent)	WDI
GF	1.150	1.300	2.960	−1.400	0.943	Green finance in renewable energy projects (million usd at 2019 prices)	IRENA
FI	1.505	1.446	2.432	0.563	0.577	Research and development expenditure (% of GDP)	WDI
GDP	3.645	3.673	4.016	3.218	0.264	GDP per capita (constant 2015 US$)	WDI
EC	7.361	7.422	7.930	6.768	0.421	Energy use (kg of oil equivalent per capita)	WDI
INTERNET	26.83	22.60	70.64	0.013	23.89	Individuals using the Internet (% of the population)	WDI

Source: Author's Estimation.

Table 2. Unit root testing.

	DF-GLS			PP
	I(0)	I(1)	Decision	I(0)	I(1)	Decision
CO2	−0.512	−1.625*	I(1)	−1.325	−4.356***	I(1)
GHGs	−0.758	−1.786*	I(1)	−1.756	−4.785***	I(1)
GF	−3.231***		I(0)	−3.320**		I(0)
FI	0.125	−5.320***	I(1)	−0.298	−5.668**	I(1)
GDP	−1.635*		I(0)	−1.485	−2.698*	I(1)
EC	−0.501	−4.658***	I(1)	−0.775	−4.887***	I(1)
Internet	−0.145	−1.687*	I(1)	1.625	−2.875*	I(1)

Note: ***p < 0.01; **p < 0.05; *p < 0.1.

Source: Author's Estimation.

Table 3. Short- and long-run estimates of ARDL.

	CO2				GHGs
Variable	Coefficient	Std. Error	t-Statistic	Prob.*	Coefficient	Std. Error	t-Statistic	Prob.*
Short-run
GF	−0.381*	0.214	−1.783	0.091	−0.315**	0.128	−2.461	0.024
GF(-1)	−0.203***	0.060	−3.369	0.005	−0.181**	0.076	−2.386	0.033
FI	0.080	0.091	0.878	0.396	0.062	0.073	0.842	0.415
FI(-1)	0.365***	0.100	3.653	0.003	0.304***	0.080	3.807	0.002
GDP	1.126***	0.333	3.385	0.005	1.056***	0.267	3.952	0.002
GDP(-1)	0.784***	0.186	4.225	0.001	0.685***	0.128	5.352	0.000
EC	0.849***	0.170	5.010	0.000	0.732***	0.131	5.591	0.000
EC(-1)	0.212**	0.105	2.015	0.079	0.159*	0.085	1.870	0.098
INTERNET	0.004	0.004	0.982	0.344	0.004	0.003	1.314	0.212
INTERNET(-1)	−0.007*	0.004	−1.884	0.082	−0.006*	0.003	−1.875	0.084
Long-run
GF	−0.492***	0.070	−7.065	0.000	−0.456***	0.078	−5.867	0.000
FI	−0.819***	0.219	−3.737	0.003	−0.720***	0.188	−3.819	0.002
GDP	2.072***	0.716	2.892	0.013	2.077***	0.639	3.251	0.006
EC	1.563***	0.262	5.959	0.000	1.440***	0.229	6.278	0.000
INTERNET	−0.007***	0.002	−2.991	0.010	−0.004**	0.002	−2.245	0.043
C	10.69***	1.294	8.263	0.000	11.92***	1.108	10.76	0.000
Diagnostics
F-test	7.658***				6.325***
ECM (-1)	−0.542***	0.030	−17.87	0.000	−0.508***	0.026	−18.96	0.000
LM	1.965				1.654
RESET	1.654				0.364
CUSUM	S				S
CUSUM-sq	S				S

Note: ***p < 0.01; **p < 0.05; *p < 0.1.

Source: Author's Estimation.

Table 4. Results of causality test.

Null Hypothesis:	F-Stat	Prob.	Null Hypothesis:	F-Stat	Prob.
GF → CO2	1.189	0.327	GF → GHGS	1.280	0.302
CO2 → GF	0.979	0.395	GHGS → GF	0.889	0.428
FI → CO2	7.629	0.004	FI → GHGS	8.793	0.002
CO2 → FI	0.112	0.894	GHGS → FI	0.093	0.911
GDP → CO2	2.117	0.149	GDP → GHGS	2.496	0.111
CO2 → GDP	1.411	0.270	GHGS → GDP	1.522	0.245
EC → CO2	3.712	0.045	EC → GHGS	3.444	0.054
CO2 → EC	0.200	0.821	GHGS → EC	0.175	0.841
INTERNET → CO2	1.641	0.222	INTERNET → GHGS	2.197	0.140
CO2 → INTERNET	0.960	0.402	GHGS → INTERNET	0.891	0.428
FI → GF	0.816	0.458	FI → GF	0.816	0.458
GF → FI	2.428	0.117	GF → FI	2.428	0.117
GDP → GF	3.092	0.070	GDP → GF	3.092	0.070
GF → GDP	1.206	0.323	GF → GDP	1.206	0.323
EC → GF	0.445	0.648	EC → GF	0.445	0.648
GF → EC	3.203	0.065	GF → EC	3.203	0.065
INTERNET → GF	7.981	0.003	INTERNET → GF	7.981	0.003
GF → INTERNET	5.949	0.010	GF → INTERNET	5.949	0.010
GDP → FI	3.928	0.038	GDP → FI	3.928	0.038
FI → GDP	1.076	0.362	FI → GDP	1.076	0.362
EC → FI	0.311	0.736	EC → FI	0.311	0.736
FI → EC	3.180	0.066	FI → EC	3.180	0.066
INTERNET → FI	4.067	0.035	INTERNET → FI	4.067	0.035
FI → INTERNET	1.050	0.371	FI → INTERNET	1.050	0.371
EC → GDP	1.735	0.205	EC → GDP	1.735	0.205
GDP → EC	3.359	0.058	GDP → EC	3.359	0.058
INTERNET → GDP	12.55	0.000	INTERNET → GDP	12.55	0.000
GDP → INTERNET	2.605	0.102	GDP → INTERNET	2.605	0.102
INTERNET → EC	0.812	0.460	INTERNET → EC	0.812	0.460
EC → INTERNET	2.331	0.126	EC → INTERNET	2.331	0.126

Source: Author's Estimation.