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Financial inclusion and green economic efficiency: evidence from China

Author

Listed:
  • Li Wang
  • Yanan Wang
  • Youxia Sun
  • Kaiji Han
  • Yuetong Chen

Abstract

Financial inclusion is crucial to a country’s competitiveness while green economy emerges as a policy priority along the sustainable development path, but how will they interact? This study examines the relationship between the two in the context of China, which is on the transition to a green economy based on city level data for 2011–2015. A multidimensional measurement of financial inclusion is established by considering the rapidly developing digital finance, and the measurement of green economic efficiency by applying the MinDW model. Results indicate that the development of financial inclusion can enhance green economic efficiency, which is mainly realized through the strengthening of the credit constraints on high-polluting firms. The findings provide further implications for implementing a financial development policy and maintain a balanced relationship between the government, financial institutions, and firms.

Suggested Citation

  • Li Wang & Yanan Wang & Youxia Sun & Kaiji Han & Yuetong Chen, 2022. "Financial inclusion and green economic efficiency: evidence from China," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 65(2), pages 240-271, January.
    • Handle: RePEc:taf:jenpmg:v:65:y:2022:i:2:p:240-271
    DOI: 10.1080/09640568.2021.1881459
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    Citations

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    Cited by:

    1. Inese Mavlutova & Aivars Spilbergs & Atis Verdenhofs & Jekaterina Kuzmina & Ilja Arefjevs & Andris Natrins, 2023. "The Role of Green Finance in Fostering the Sustainability of the Economy and Renewable Energy Supply: Recent Issues and Challenges," Energies, MDPI, vol. 16(23), pages 1-18, November.
    2. Shao, Junli & Wu, Dengrong & Jin, Cheng, 2023. "How do financial inclusion and education increase resource efficiency?," Resources Policy, Elsevier, vol. 85(PA).
    3. Arno J. van Niekerk, 2024. "Economic Inclusion: Green Finance and the SDGs," Sustainability, MDPI, vol. 16(3), pages 1-21, January.
    4. Xueyang Wang & Xiumei Sun & Haotian Zhang & Chaokai Xue, 2022. "Digital Economy Development and Urban Green Innovation CA-Pability: Based on Panel Data of 274 Prefecture-Level Cities in China," Sustainability, MDPI, vol. 14(5), pages 1-21, March.
    5. Dong, Jiajia & Dou, Yue & Jiang, Qingzhe & Zhao, Jun, 2022. "Can financial inclusion facilitate carbon neutrality in China? The role of energy efficiency," Energy, Elsevier, vol. 251(C).
    6. Nasir Khan & Mahwish Zafar & Abiodun Funso Okunlola & Zeman Zoltan & Magda Robert, 2022. "Effects of Financial Inclusion on Economic Growth, Poverty, Sustainability, and Financial Efficiency: Evidence from the G20 Countries," Sustainability, MDPI, vol. 14(19), pages 1-19, October.
    7. Hui Wang & Muhammad Wasif Zafar & Shujaat Abbas & Mehmet Akif Destek, 2023. "An assessment of energy poverty in sub-Saharan Africa: the role of financial inclusion and education," Economic Change and Restructuring, Springer, vol. 56(6), pages 4689-4711, December.
    8. Cai, Xuesen & Wei, Changjing, 2023. "Does financial inclusion and renewable energy impede environmental quality: Empirical evidence from BRI countries," Renewable Energy, Elsevier, vol. 209(C), pages 481-490.
    9. Ma, Kelin, 2023. "Digital inclusive finance and corporate green technology innovation," Finance Research Letters, Elsevier, vol. 55(PB).
    10. Ran Wang & Rong Wang, 2023. "Exploring Financial Agglomeration and the Impact of Environmental Regulation on the Efficiency of the Green Economy: Fresh Evidence from 30 Regions in China," Sustainability, MDPI, vol. 15(9), pages 1-18, April.
    11. Yu, Yantuan & Tang, Kai, 2023. "Does financial inclusion improve energy efficiency?," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    12. Taskin, Dilvin & Dogan, Eyup & Madaleno, Mara, 2022. "Analyzing the relationship between energy efficiency and environmental and financial variables: A way towards sustainable development," Energy, Elsevier, vol. 252(C).
    13. Yuan Li & Nan Huang & Yang Zhao, 2022. "The Impact of Green Innovation on Enterprise Green Economic Efficiency," IJERPH, MDPI, vol. 19(24), pages 1-26, December.
    14. Jimoh Sina Ogede & Adedamola Akeem Siyanbola & Soliu Bidemi Adegboyega & Olayinka Esther Atoyebi, 2023. "On the asymmetric effects of economic policy uncertainty on renewable energy consumption: insights from sub-Saharan African countries," SN Business & Economics, Springer, vol. 3(10), pages 1-19, October.

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