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Capitalizing on sustainability: China's green finance strategy for achieving environmentally resilient wastewater treatment

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  • Meo, Muhammad Saeed
  • Ben Zaied, Younes
  • Afshan, Sahar
  • Anees, Alvena

Abstract

In China, wastewater management is becoming a more prominent concern due to the country's continuous industrial and urban development. The massive amounts of wastewater produced may threaten water resources and ecosystems. Therefore, innovative policies are crucial to enhance the wastewater treatment process and its infrastructure to secure sustainable water management. Hence, this study explores the asymmetric impact of green finance and other control variables like industrialization, environmental technology, and innovation in renewable energy on wastewater treatment in China. Using monthly data from January 2008 to December 2021 and an innovative nonlinear ARDL (NARDL) approach, the study confirms the significant positive impact of green finance, industrialization, environmental technology, and innovation in renewable energy on wastewater treatment. The robustness of the NARDL findings is being assessed using a novel multivariate quantile-on-quantile approach, which yields similar results, confirming the consistency of the findings. Furthermore, the findings highlight asymmetric associations among the variables, providing insightful policy implications for achieving SDG 6.

Suggested Citation

  • Meo, Muhammad Saeed & Ben Zaied, Younes & Afshan, Sahar & Anees, Alvena, 2025. "Capitalizing on sustainability: China's green finance strategy for achieving environmentally resilient wastewater treatment," International Review of Economics & Finance, Elsevier, vol. 101(C).
    • Handle: RePEc:eee:reveco:v:101:y:2025:i:c:s1059056025003363
    DOI: 10.1016/j.iref.2025.104173
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    Cited by:

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    2. Yao, Dingjun & Zhang, Yu & Hu, Jinzhan & Zhou, Hua, 2025. "Effect of green inclusive finance on carbon emission efficiency: Empirical evidence from provincial panel data in China," International Review of Financial Analysis, Elsevier, vol. 106(C).

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    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance

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