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The impact of green finance on economic growth and environmental quality

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  • Zhou, Jing
  • Guo, Yanan

Abstract

This article explores the impact of green finance on economic growth and environmental quality by selecting balanced panel data from 30 provinces in China (excluding Tibet) from 2012 to 2023. The study finds that green finance has a robust positive driving effect on macroeconomic growth. However, the impacts of control variables such as the level of opening-up and education on economic growth vary, indicating that multiple factors need to be considered comprehensively to promote economic growth. There are regional differences in the impact of green finance development on macroeconomic growth, with a significant driving effect in the eastern region, a positive promoting effect in the central region, and an insufficiently evident promoting effect in the western region. The degree of green finance development has a significant impact on the turning point of the Kuznets curve. Areas with high levels of green finance development exhibit an inverted U-shape, while areas with low levels do not show obvious characteristics or have not yet reached the turning point.

Suggested Citation

  • Zhou, Jing & Guo, Yanan, 2026. "The impact of green finance on economic growth and environmental quality," Finance Research Letters, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:finlet:v:87:y:2026:i:c:s1544612325023360
    DOI: 10.1016/j.frl.2025.109087
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