Enhancing Green Finance for Inclusive Green Growth: A Systematic Approach

The synergetic impact of digital campaigns and economic incentives on environmental performance: the mediating role of household indoor and outdoor activities

The primary goal of this research is to look into the impact of digital campaigns for environmental and economic incentives on environmental performance, with indoor and outdoor activities of households taken as mediating variables. PLS-SEM was used to evaluate and quantify the novel and complex model to meet the study's goals. Furthermore, data were gathered from 1542 Pakistani households using convenient sampling techniques. The study's findings show that digital campaigns and economic incentives significantly increase household's participation in indoor and outdoor activities, which improves environmental performance. This study contributes to the literature on environmental performance by examining digital campaigns and economic incentives as resilient influencers. Furthermore, this study assists authorities in developing an effective and efficient policy that promotes environmental savaging information while providing economic incentives to encourage the activities. At the same time, it emphasizes environmental concerns and how they can be addressed.

Research on risk management incentive strategy based on the green financial ecosystem

Taking the green financial ecosystem composed of innovators, green financial institutions and regulators as the object of research, it explores the issue of how to improve the level of efforts of the three types of subjects and the benefits of risk management in the green financial ecosystem. The optimal level of effort, optimal level of return, and optimal level of return on risk management of green financial ecosystems for innovators, green financial institutions, and regulators under the three modes of No-incentive Contract, Cost-sharing Contract, and Synergistic Cooperation Contract are investigated and analyzed respectively, and verified by numerical simulation analysis. The results show: (1) Compared to the No-incentive Contract, the Cost-sharing Contract and the Synergy Cooperation Contract generate more significant incentives, and returns increase over time in both models. (2) The effort level of the participating subjects under the Synergistic Cooperation Contract is the highest, which can realize the Pareto optimization of the participating subjects and the green financial ecosystem at the same time. The study's findings contribute to a deeper understanding of cooperation among innovators, green financial institutions and regulators in facilitating risk management in green financial ecosystems and provide a realistic reference for risk managers in green financial ecosystems.

Green finance and corporate environmental investment: "Scale Up" or "Efficiency Up"?

The establishment of green finance reform and innovation (GFRI) pilot zone is an important measure of the Chinese government to urge enterprises to develop green transformation. This paper explores the impact of pilot policies in the GFRI pilot zone on corporate environmental investment. Based on 819 A-share listed enterprises from 2010 to 2020, our staggered difference-in-differences (staggered DID) estimation documents revealed that enterprises in the GFRI pilot zone significantly increased the corporate environmental investment efficiency but reduced the scale of corporate environmental investment.This conclusion remained robust after Propensity Scores Matching difference-in-differences (PSM-DID), replacing dependent variables, and shortening the time window. We contend that the increased research and development (R&D) expenditure and technological innovation are the potential mechanisms at work. Heterogeneity analysis showed that the establishment of GFRI improved the environmental investment efficiency of polluting enterprises but had no effect on green enterprises.Meanwhile, the effect of GFRI exhibited heterogeneity in the type of enterprise ownership. This paper evaluates the implementation effect of GFRI from the perspective of corporate environmental investment, and provides theoretical support and an empirical basis for green finance policy to serve China's green economy.

Green development in BRICS: unraveling the effects of environmental technology, R&D spending, and green investment in the context of COP21

The BRICS countries are renowned for their rapidly developing economies and growing populations. However, the environmental challenges associated with their economic growth have raised concerns about sustainability and the need for green growth strategies. In recent times, empirics have started to analyze the determinants of green growth, but very few have focused on environmental technological capital, R&D, and green investment. This study examines the impact of environmental technological capital, R&D, and green investment on green growth in BRICS economies from 1995 to 2020 using a panel ARDL model. The study found that green investment, environmental technology, and R&D positively facilitate green growth in the BRICS economies in the long run. The long-run country-wise estimate of green investment is positively significant in Brazil and Russia. On the other side, the estimated coefficient of environmental technology is positive in Brazil, India, and China. However, the estimated coefficient of R&D is positive in China only. In the short run, the results are a mix, whether group-wise or country-wise. Based on the results, the study will recommend policy suggestions for green R&D, development of environmental technology, and green investment that help in enhancing green growth.

Green finance in circular economy: a literature review

Developing markets are using sustainable development potential to reach zero-carbon goals. Due to the limitation of natural resources, companies need to use environmentally friendly manufacturing to develop a circular economy (CE). Green finance (GF) and the CE are linked in a systematic and complex approach; therefore, it was essential to employ the coupling coordination-level framework to explain their relationship and feedback. Any study linking green financing and CE together has been found. The objective of this research is to explore this twofold domain and determine its main characteristics. To address this objective, a comprehensive review of the literature was conducted, supplemented by a bibliometric analysis. The results confirm that GF has the potential to help society, sustainability, and the prevention to climate shifts, investing in the CE. There are many hurdles to overcome, including inadequate knowledge about CE and GF, ambiguous definitions, a lack of coherence between legal frameworks on CE and green financing, unclear laws, and a lack of financially viable motivation for investors and financial institutions that are ready to promote in sustainability. This study explores CE and GF domains. Managers may readily increase their understanding of methods, strategies, and technical solutions beneficial to assist their operations toward a green economy depending on various CE and GF elements. Finally, based on a categorization of GF types, the assessment identifies future investment potential consequences of green financing in the CE.

Toward green growth in China: The role of green finance investment, technological capital, and renewable energy consumption

In recent times, the concept of green growth has emerged, which has a critical part to play in controlling the environmental impact of economic activities. In this analysis, we have explored three determinants of green growth: green finance investment, technological capital, and renewable energy. Moreover, this study focuses on the asymmetric impact of green finance investment, technological progress, and renewable energy on green growth in China during the period spanning from 1996 to 2020. To get the asymmetric short and long-run estimates across various quantiles, we have employed the nonlinear QARDL. The long-run estimates attached to a positive shock in green finance investment, renewable energy demand, and technological capital are positively significant at most quantiles. While, the long-run estimates attached to a negative shock in green finance investment, technological capital, and renewable energy demand are insignificant at most quantiles. In general, the findings suggest that the rise in green financial investment, technological capital, and renewable energy demand positively impacts green growth in the long run. The study offers a range of significant policy recommendations that can contribute to the advancement of sustainable green growth in China.

Research on the policy effect and mechanism of green finance to reduce environmental pollution: micro evidence from 285 cities in China

Based on panel data from 285 Chinese prefecture-level cities from 2003 to 2020, this paper uses the difference-in-difference (DID) method to investigate the policy effect, mechanism, and heterogeneity of green finance (GF) to reduce environmental pollution. (1) Green finance has significant effect on reducing environmental pollution. The parallel trend test demonstrates that DID test results are valid. (2) Following a battery of robustness tests including instrumental variable, propensity score matching (PSM), variable substitution, and changing time-bandwidth, the conclusions are still valid. (3) Mechanism analysis reveals that green finance can reduce environmental pollution by increasing energy efficiency, adjusting industrial structure, and transforming green consumption. (4) Heterogeneity analysis proves that green finance has a substantial impact on reducing the environmental pollution in eastern and western cities, but not in central China. (5) In the "two-control zone" and "low-carbon pilot cities," the results of applying green finance policies are better, and a policy superposition effect exists. To be able to promote environmental pollution control, and green and sustainable development, this paper provides useful enlightenment for environmental pollution control for China and other similar countries.

Unleashing the dynamic and nonlinear relationship among new-type urbanization, foreign direct investment, and inclusive green growth in China: an environmental sustainability perspective

As an important way for China to integrate into the international circulation, foreign direct investment (FDI) can not only increase China's capital accumulation but also directly affect inclusive green growth by promoting the diffusion and transfer of green technologies and activating the domestic market. Based on China's provincial panel data from 2007 to 2019, this paper discusses the following issues: first, Global Malmquist-Luenberger (GML) productivity index is used to measure and analyze the current situation of inclusive green growth in 30 provinces of China; second, we set a fixed effect panel model to test the relationship between FDI and inclusive green growth in China. Third, based on PVAR (panel vector autoregressive) model, the dynamic impacts of FDI and new urbanization on inclusive green growth are tested. Finally, a regression model with the new urbanization level as the threshold variable is constructed to test the threshold effect of FDI on China's green inclusive growth. Accordingly, each region needs to formulate FDI introduction policies according to the local new urbanization level, so as to give full play to the positive role of FDI in inclusive green growth.

Studying green financing with economic development in BRI countries perspective: does public-private investment matter?

The study aims to test and inquire about the nexus between green financing and economic development in the belt-and-road initiative (BRI) member countries with the role of public-private investments. The study used the generalized method of moments (GMM) assessment approach from 1990Q1 to 2018Q4 to evaluate research topicality. The study's findings have uncovered some hidden insights and presented new insights. In line with this, the study's findings highlighted that an accurate role of green financing is significant in economic development in BRI economies throughout the research period. The results demonstrate that the GMM method of investigation has distinct validity in establishing the overall significance of results about the role of public-private investments in BRI nations. However, the study results about public-private investments showed a varying impact on nations with high GDP per capita. Moreover, the findings from this research indicate that the development of renewable energy sources is also widely aided by applying environmental regulations. At the same time, factors including population size, technological innovation, industrial structure, and foreign direct investment (FDI) significantly control the relationship between green financing, public-private investments, and economic development. On these findings, the study also recommended practical directions for stakeholders.