300
Views
1
CrossRef citations to date
0
Altmetric
Research Article

Does financial development benefit carbon neutrality in China? Pathway analysis and empirical study

&

References

  • Acheampong, A. O. 2019. “Modelling for Insight: Does Financial Development Improve Environmental Quality?” Energy Economics 83: 156–179. doi:10.1016/j.eneco.2019.06.025.
  • Acheampong, A. O., M. Amponsah, and E. Boateng. 2020. “Does Financial Development Mitigate Carbon Emissions? Evidence from Heterogeneous Financial Economies.” Energy Economics 88: 104768. doi:10.1016/j.eneco.2020.104768.
  • Adebanjo, S. A., and O. M. Adeoye. 2022. “Transparency and Global Initiatives in the Face of Natural Resource Depletion in Sub-Saharan Africa.” Journal of Environmental Science and Economics 1 (2): 13–24. doi:10.56556/jescae.v1i2.13.
  • Adebanjo, S. A., and T. H. Shakiru. 2022. “Dynamic Relationship Between Air Pollution and Economic Growth in Jordan: An Empirical Analysis.” Journal of Environmental Science and Economics 1 (2): 30–43. doi:10.56556/jescae.v1i2.17.
  • Aidonojie, P., M. E. Idahosa, O. P. Agbale, and A. I. Oyedeji. 2022. “The Environmental Conservation, Legal and Ethical Issues Concerning Herbal Products in Nigeria.” Journal of Environmental Science and Economics 1 (3): 26–32. doi:10.56556/jescae.v1i3.124.
  • Alhassan, A., A. Aliyu, A. Magaji, M. N. Abdulkareem, and M. Abdullahi. 2022. “An Insight into the Importance of Application of Geophysical Methods in Agriculture for National Economic Development.” Global Sustainability Research 1 (1): 1–4. doi:10.56556/gssr.v1i1.301.
  • Aluko, O. A., and A. A. Obalade. 2020. “Financial Development and Environmental Quality in Sub-Saharan Africa: Is There a Technology Effect?” The Science of the Total Environment 747: 141515. doi:10.1016/j.scitotenv.2020.141515.
  • Anton, S. G., and A. E. A. Nucu. 2020. “The Effect of Financial Development on Renewable Energy Consumption. A Panel Data Approach.” Renewable Energy 147: 330–338. doi:10.1016/j.renene.2019.09.005.
  • Aquilas, N. A., and J. T. Atemnkeng. 2022. “Climate-Related Development Finance and Renewable Energy Consumption in Greenhouse Gas Emissions Reduction in the Congo Basin.” Energy Strategy Reviews 44: 100971. doi:10.1016/j.esr.2022.100971.
  • Banerjee, K. 2022. “FDI Flow in Energy Sector Among BCIM, BIMSTEC+1 and ASEAN+4 Sub-Regional Alignments.” Journal of Environmental Science and Economics 1 (3): 33–50. doi:10.56556/jescae.v1i3.226.
  • Bibi, R., I. Khan, Z. R. Sumaira, F. Sadiq, L. T. K. Oanh, and Y. Zhang. 2022. “The Nexus Between Energy Consumption, Carbon Dioxide Emission and Technological Innovation in the Global Panel: Evidence from Panel Quantile Regression.” Journal of Technology Innovations and Energy 1 (4): 1–9. doi:10.56556/jtie.v1i4.289.
  • Buera, F. J., J. P. Kaboski, and Y. Shin. 2011. “Finance and Development: A Tale of Two Sectors.” The American Economic Review 101 (5): 1964–2002. doi:10.1257/aer.101.5.1964.
  • Canh, N. P., and S. D. Thanh. 2020. “Financial Development and the Shadow Economy: A Multi-Dimensional Analysis.” Economic Analysis and Policy 67: 37–54. doi:10.1016/j.eap.2020.05.002.
  • Charfeddine, L., and M. Kahia. 2019. “Impact of Renewable Energy Consumption and Financial Development on CO2 Emissions and Economic Growth in the MENA Region: A Panel Vector Autoregressive (PVAR) Analysis.” Renewable Energy 139: 198–213. doi:10.1016/j.renene.2019.01.010.
  • Chen, Z., W. Huang, and X. Zheng. 2019. “The Decline in Energy Intensity: Does Financial Development Matter?” Energy Policy 134: 110945. doi:10.1016/j.enpol.2019.110945.
  • Dutta, N., and R. S. Sobel. 2018. “Entrepreneurship and Human Capital: The Role of Financial Development.” International Review of Economics & Finance 57: 319–332. doi:10.1016/j.iref.2018.01.020.
  • Du, K., Y. Yu, and C. Wei. 2020. “Climatic Impact on China’s Residential Electricity Consumption: Does the Income Level Matter?” China Economic Review 63: 101520. doi:10.1016/j.chieco.2020.101520.
  • Fang, Z., X. Gao, and C. Sun. 2020. “Do Financial Development, Urbanization and Trade Affect Environmental Quality? Evidence from China.” Journal of Cleaner Production 259: 120892. doi:10.1016/j.jclepro.2020.120892.
  • Fisher, A. G. B. 1952. “A Note on Tertiary Production.” The Economic Journal 62 (248): 820–834. doi:10.2307/2226528.
  • Goldsmith, R. 1969. Financial structure and economic development. New Haven, CT: Yale University Press.
  • Guo, M., Y. Hu, and J. Yu. 2019. “The Role of Financial Development in the Process of Climate Change: Evidence from Different Panel Models in China.” Atmospheric Pollution Research 10 (5): 1375–1382. doi:10.1016/j.apr.2019.03.006.
  • Habiba, U., C. Xinbang, and A. Anwar. 2022. “Do Green Technology Innovations, Financial Development, and Renewable Energy Use Help to Curb Carbon Emissions?” Renewable Energy 193: 1082–1093. doi:10.1016/j.renene.2022.05.084.
  • Jalil, A., and M. Feridun. 2011. “The Impact of Growth, Energy and Financial Development on the Environment in China: A Cointegration Analysis.” Energy Economics 33 (2): 284–291. doi:10.1016/j.eneco.2010.10.003.
  • Jamil, M. N. 2022. “Critical Analysis of Energy Consumption and Its Impact on Countries Economic Growth: An Empirical Analysis Base on Countries Income Level.” Journal of Environmental Science and Economics 1 (2): 1–12. doi:10.56556/jescae.v1i2.11.
  • Khan, M. T. I., M. R. Yaseen, and Q. Ali. 2019. “Nexus Between Financial Development, Tourism, Renewable Energy, and Greenhouse Gas Emission in High-Income Countries: A Continent-Wise Analysis.” Energy Economics 83: 293–310. doi:10.1016/j.eneco.2019.07.018.
  • Kongsamut, P., S. Rebelo, and D. Xie. 2001. “Beyond Balanced Growth.” The Review of Economic Studies 68 (4): 869–882. doi:10.1111/1467-937X.00193.
  • Levine, R. 1997. “Financial Development and Economic Growth: Views and Agenda.” Journal of Economic Literature 35: 688–726.
  • Liu, G., D. Chen, and C. Feng. 2017. “The Analysis of Effects and Mechanism of Minimum Wage Standard on Resource Misallocation.” China Industrial Economics 07: 62–80. in Chinese.
  • Liu, H., and Y. Song. 2020. “Financial Development and Carbon Emissions in China Since the Recent World Financial Crisis: Evidence from a Spatial-Temporal Analysis and a Spatial Durbin Model.” The Science of the Total Environment 715: 136771. doi:10.1016/j.scitotenv.2020.136771.
  • Nasir, M. A., T. L. Duc Huynh, and H. T. Xuan Tram. 2019. “Role of financial development, economic growth & foreign direct investment in driving climate change: A case of emerging ASEAN.” Journal of environmental management 242: 131–141. doi:10.1016/j.jenvman.2019.03.112.
  • Ouyang, X., X. Fang, Y. Cao, and C. Sun. 2020. “Factors Behind CO2 Emission Reduction in Chinese Heavy Industries: Do Environmental Regulations Matter?” Energy Policy 145: 111765. doi:10.1016/j.enpol.2020.111765.
  • Pan, X., S. Guo, C. Han, M. Wang, J. Song, and X. Liao. 2020. “Influence of FDI Quality on Energy Efficiency in China Based on Seemingly Unrelated Regression Method.” Energy 192: 116463. doi:10.1016/j.energy.2019.116463.
  • Pan, X., M. K. Uddin, C. Han, and X. Pan. 2019. “Dynamics of Financial Development, Trade Openness, Technological Innovation and Energy Intensity: Evidence from Bangladesh.” Energy 171: 456–464. doi:10.1016/j.energy.2018.12.200.
  • Qin, M., C. W. Su, Y. Zhong, Y. Song, and O. R. Lobonț. 2022. “Sustainable Finance and Renewable Energy: Promoters of Carbon Neutrality in the United States.” Journal of environmental management 324: 324. doi:10.1016/j.jenvman.2022.116390.
  • Raihan, A., and A. Tuspekova. 2022. “Nexus Between Energy Use, Industrialization, Forest Area, and Carbon Dioxide Emissions: New Insights from Russia.” Journal of Environmental Science and Economics 1 (4): 1–11. doi:10.56556/jescae.v1i4.269.
  • Rajan, R., and L. Zingales. 1998. “Financial Dependence and Growth.” The American Economic Review 88 (3): 559–586.
  • Russino, A. 2018. “Financial Development and Intergenerational Education Mobility.” Review of Development Finance 8 (1): 25–37. doi:10.1016/j.rdf.2018.05.006.
  • Sadiq, M., R. Shinwari, M. Usman, I. Ozturk, and A. I. Maghyereh. 2022. “Linking Nuclear Energy, Human Development and Carbon Emission in BRICS Region: Do External Debt and Financial Globalization Protect the Environment?” Nuclear Engineering and Technology 54 (9): 3299–3309. doi:10.1016/j.net.2022.03.024.
  • Sager, L. 2019. “Income Inequality and Carbon Consumption: Evidence from Environmental Engel Curves.” Energy Economics 84: 104507. doi:10.1016/j.eneco.2019.104507.
  • Salahuddin, M., K. Alam, I. Ozturk, and K. Sohag. 2018. “The Effects of Electricity Consumption, Economic Growth, Financial Development and Foreign Direct Investment on CO2 Emissions in Kuwait.” Renewable and Sustainable Energy Reviews 81: 2002–2010. doi:10.1016/j.rser.2017.06.009.
  • Schumpeter, J. A. 1911. The Theory of Economic Development. Cambridge: Harvard University Press.
  • Shahbaz, M., M. A. Nasir, and D. Roubaud. 2018. “Environmental Degradation in France: The Effects of FDI, Financial Development, and Energy Innovations.” Energy Economics 74: 843–857. doi:10.1016/j.eneco.2018.07.020.
  • Shan, Y., J. Liu, Z. Liu, X. Xu, S. Shao, P. Wang, and D. Guan. 2016. “New Provincial CO2 Emission Inventories in China Based on Apparent Energy Consumption Data and Updated Emission Factors.” Applied Energy 184: 742–750. doi:10.1016/j.apenergy.2016.03.073.
  • Tang, W. Q., B. Meng, and L. B. Wu. 2020. “The Impact of Regulatory and Financial Discrimination on China’s Low-Carbon Development: Considering Firm Heterogeneity.” Advances in Climate Change Research 11 (2): 72–84. doi:10.1016/j.accre.2020.06.002.
  • Uy, T., K. M. Yi, and J. Zhang. 2013. “Structural Change in an Open Economy.” Journal of Monetary Economics 60 (6): 667–682. doi:10.1016/j.jmoneco.2013.06.002.
  • Van Hoang, T. H., S. J. H. Shahzad, and R. L. Czudaj. 2020. “Renewable Energy Consumption and Industrial Production: A Disaggregated Time-Frequency Analysis for the U.S.” Energy Economics 85: 104433. doi:10.1016/j.eneco.2019.06.018.
  • Wang, B., Y. Sun, and Z. Wang. 2018. “Agglomeration Effect of CO2 Emissions and Emissions Reduction Effect of Technology: A Spatial Econometric Perspective Based on China’s Province-Level Data.” Journal of Cleaner Production 204: 96–106. doi:10.1016/j.jclepro.2018.08.243.
  • Wan, Q., J. Qian, A. Baghirli, and A. Aghayev. 2022. “Green Finance and Carbon Reduction: Implications for Green Recovery.” Economic Analysis and Policy 76: 901–913. doi:10.1016/j.eap.2022.09.022.
  • Wu, J., and Z. Guo. 2016. “Research on the Convergence of Carbon Dioxide Emissions in China: A Continuous Dynamic Distribution Approach.” Statistical Research 01: 54–60. in Chinese.
  • Xu, X., S. P. Huang, H. Z. An, S. Vigne, and B. Lucey. 2021. “The Influence Pathways of Financial Development on Environmental Quality: New Evidence from Smooth Transition Regression Models.” Renewable and Sustainable Energy Reviews 151: 111576. doi:10.1016/j.rser.2021.111576.
  • Yin, Z., H. Peng, Z. Xiao, F. Fang, and W. Wang. 2022. “The Carbon Reduction Channel Through Which Financing Methods Affect Total Factor Productivity: Mediating Effect Tests from 23 Major Carbon-Emitting Countries.” Environmental Science and Pollution Research 29 (43): 65012–65024. doi:10.1007/s11356-022-19945-x.
  • You, W., and Z. Lv. 2018. “Spillover Effects of Economic Globalization on CO2 Emissions: A Spatial Panel Approach.” Energy Economics 73: 248–257. doi:10.1016/j.eneco.2018.05.016.
  • Yuan, B., S. Ren, and X. Chen. 2015. “The Effects of Urbanization, Consumption Ratio and Consumption Structure on Residential Indirect CO2 Emissions in China: A Regional Comparative Analysis.” Applied Energy 140: 94–106. doi:10.1016/j.apenergy.2014.11.047.
  • Zaidi, S. A. H., M. W. Zafar, M. Shahbaz, and F. Hou. 2019. “Dynamic Linkages Between Globalization, Financial Development and Carbon Emissions: Evidence from Asia Pacific Economic Cooperation Countries.” Journal of Cleaner Production 228: 533–543. doi:10.1016/j.jclepro.2019.04.210.
  • Zhang, Y. J. 2011. “The Impact of Financial Development on Carbon Emissions: An Empirical Analysis in China.” Energy Policy 39 (4): 2197–2203. doi:10.1016/j.enpol.2011.02.026.
  • Zhang, H., C. Feng, and X. Zhou. 2022. “Going Carbon-Neutral in China: Does the Low-Carbon City Pilot Policy Improve Carbon Emission Efficiency?” Sustainable Production and Consumption 33: 312–329. doi:10.1016/j.spc.2022.07.002.
  • Zhang, W., Z. Zhu, X. Liu, and J. Cheng. 2022. “Can Green Finance Improve Carbon Emission Efficiency?” Environmental Science and Pollution Research 29: 1–14.
  • Zhao, X., Y. Shang, and M. Song. 2020. “Industrial Structure Distortion and Urban Ecological Efficiency from the Perspective of Green Entrepreneurial Ecosystems.” Socio-Economic Planning Sciences 72: 100757. doi:10.1016/j.seps.2019.100757.
  • Zhao, B., and W. Yang. 2020. “Does Financial Development Influence CO2 Emissions? A Chinese Province-Level Study.” Energy 200: 117523. doi:10.1016/j.energy.2020.117523.
  • Zhou, X., Z. Pan, M. Shahbaz, and M. Song. 2020. “Directed Technological Progress Driven by Diversified Industrial Structural Change.” Structural Change and Economic Dynamics 54: 112–129. doi:10.1016/j.strueco.2020.04.013.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.