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Financial innovation, green investment, and sustainable mineral extractions in China

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  • He, Guohua
  • Zhu, Peiling
  • Wu, Changjun

Abstract

This paper focuses on the intersection of financial innovation, green investment and sustainable mineral extractions in China, a prominent Global South country, taking data from 2010 to 2021. By employing cointegration technique, this study unveils compelling insights into the relationship between financial practices and environmentally sustainable mineral extraction. The results of this research show a significant impact of green innovation and green investment on the reduction of carbon emissions across the selected countries. These findings emphasize the critical role that innovative financial strategies and investments in sustainable practices play in mitigating the environmental impact of mineral extractions. Furthermore, the study unearths a significant positive relationship between financial innovation and green mineral extractions in China. It demonstrates that financial innovation, when strategically employed, can substantially enhance the sustainability of mineral extraction processes. This is particularly significant given the growing demand for minerals in China and the pressing need for environmentally responsible practices. These findings hold profound implications for policymakers, businesses, and investors operating in China and Global South as well. The results underscore the importance of embracing financial innovation and green investment as powerful tools for reducing carbon emissions and promoting sustainable mineral extractions.

Suggested Citation

  • He, Guohua & Zhu, Peiling & Wu, Changjun, 2024. "Financial innovation, green investment, and sustainable mineral extractions in China," Resources Policy, Elsevier, vol. 90(C).
  • Handle: RePEc:eee:jrpoli:v:90:y:2024:i:c:s0301420724000631
    DOI: 10.1016/j.resourpol.2024.104696
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