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Green finance and land ecological security: A potential mechanism for sustainable development

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  • Lee, Chien-Chiang
  • Yuan, Zihao
  • Kang, Yongchao

Abstract

With growing global concern for environmental issues, green finance (GF) has emerged as a key tool for promoting sustainable development. However, research on its impact on land ecological security (LES) is limited. This study explores the spatial and non-linear effects of GF on LES, focusing on the roles of agricultural e-commerce (AEC) and agricultural industry agglomeration (AIA). Our findings reveal significant first, spatial auto-correlation in LES and an inverted U-shaped pattern in the spatial impact of GF. Second, AEC enhances this inverted U-shaped relationship, shifting the knee point leftward and resulting in a higher marginal effect of GF on LES. Conversely, AIA weakens the relationship, shifting the knee point rightward and potentially flipping the pattern. Additionally, heterogeneity researches results indicate that this spatial effect exists only in primary grain distribution areas, and not in primary grain producing areas or grain production and distribution balanced areas. Robustness tests, including instrumental variables and alternative core explanatory variables, confirm the credibility of these results. This research offers targeted policy recommendations for the GF-LES relationship.

Suggested Citation

  • Lee, Chien-Chiang & Yuan, Zihao & Kang, Yongchao, 2024. "Green finance and land ecological security: A potential mechanism for sustainable development," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1222-1241.
    • Handle: RePEc:eee:ecanpo:v:84:y:2024:i:c:p:1222-1241
    DOI: 10.1016/j.eap.2024.10.003
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    More about this item

    Keywords

    Land ecological security; Green finance; Agricultural e-commerce; Agricultural industry agglomeration;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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