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Green finance and energy natural resources nexus with economic performance: A novel evidence from China

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  • Gong, Qinyi
  • Ying, Limeng
  • Dai, Jiapeng

Abstract

The role of green finance and environmental innovation has become crucial, especially post-COP27 targets. Green finance, especially in the context of growing climate-related problems has become crucial. Therefore, unlike past studies, this study adds to the literature by checking the impact of environmental innovation, renewable energy, and green finance on sustainable economic performance. Sustainable economic performance originated from cleaner production processes has become inevitable. This study used time series data from 1994 to 2021. Several time series methods applied are used in the study which includes the ADF test for unit root and Bayer-Hanck for equilibrium while for primary methods, the study included a novel MMQR approach. For robustness check analysis, we use FMOLS, DOLS, CCR, and robust regression analysis. The outcomes indicate that variables are found static at the difference and long-term cointegration has been found among variables. The study found that green innovation or environmental innovation with green finance and renewable energy sources encourages economic growth. Moreover, the results of natural resources confirm the resource curse in China while financial development and human capital improve economic growth. In terms of rankings, the shares of green finance are higher followed by renewable energy electricity output and environmental innovation. The study recommends more green financing with environmental innovation and renewable energy. The study has of great impact on policymakers.

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  • Gong, Qinyi & Ying, Limeng & Dai, Jiapeng, 2023. "Green finance and energy natural resources nexus with economic performance: A novel evidence from China," Resources Policy, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:jrpoli:v:84:y:2023:i:c:s0301420723004762
    DOI: 10.1016/j.resourpol.2023.103765
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    1. Chenggang Wang & Guitao Qiao & Mahmood Ahmad & Zahoor Ahmed, 2023. "The Role of the Government in Green Finance, Foreign Direct Investment, Technological Innovation, and Industrial Structure Upgrading: Evidence from China," Sustainability, MDPI, vol. 15(19), pages 1-24, September.
    2. Han Yan & Md. Qamruzzaman & Sylvia Kor, 2023. "Nexus between Green Investment, Fiscal Policy, Environmental Tax, Energy Price, Natural Resources, and Clean Energy—A Step towards Sustainable Development by Fostering Clean Energy Inclusion," Sustainability, MDPI, vol. 15(18), pages 1-25, September.
    3. Yupu Wang & Md. Qamruzzaman & Sylvia Kor, 2023. "Greening the Future: Harnessing ICT, Innovation, Eco-Taxes, and Clean Energy for Sustainable Ecology—Insights from Dynamic Seemingly Unrelated Regression, Continuously Updated Fully Modified, and Cont," Sustainability, MDPI, vol. 15(23), pages 1-26, November.

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