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Green finance and agricultural carbon emissions

Author

Listed:
  • Yu, Zhiming
  • Yao, Ruikuan
  • Wu, Haitao
  • Wang, Zeyu

Abstract

Using provincial panel data from China covering the period from 2010 to 2023, this study empirically investigates the impact of green finance on agricultural carbon emissions through a bidirectional fixed-effects model and an instrumental variable approach. The results reveal that: (1) a one-unit increase in the Green Finance Index (GFI) significantly reduces agricultural carbon emissions by 0.624 units, and this finding remains robust after addressing potential endogeneity and performing a series of robustness checks; (2) heterogeneity analysis shows that the emission reduction effect is more pronounced in regions with greater fiscal support for agriculture, in major grain-producing areas, and in the western provinces; (3) mechanism analysis confirms that green finance mitigates agricultural carbon emissions via two primary channels: the promotion of green agricultural production and the advancement of green technological innovation. Based on these findings, the study recommends strengthening region-specific policy design and enhancing support for the adoption of green technologies.

Suggested Citation

  • Yu, Zhiming & Yao, Ruikuan & Wu, Haitao & Wang, Zeyu, 2025. "Green finance and agricultural carbon emissions," Finance Research Letters, Elsevier, vol. 86(PE).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pe:s154461232501952x
    DOI: 10.1016/j.frl.2025.108698
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    References listed on IDEAS

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