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How does green finance improve food security? From the perspective of rural human capital

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  • Yuan, Zihao
  • Lee, Chien-Chiang
  • He, Zhi-Wen

Abstract

This study investigates the impact of green finance (GF) on food security (FS) in China, addressing the role of rural human capital and spatial non-linear effects. While research on GF has grown, its relationship with FS is still under-explored, especially in the context of China's diverse provincial landscapes. Using the balanced panel data from 30 provinces in China from 2001 to 2020, the study employs the fixed effect method, panel quantile regression, and panel spatial Durbin quantile to analyze the impact of GF on FS across different quantiles, capturing both linear and non-linear effects. The results show that GF significantly enhances FS, with the effect stronger in provinces with higher FS levels and robust across various checks. Rural human capital is found to positively moderate the GF-FS relationship, particularly in provinces with lower FS. Heterogeneity analysis reveals that the moderating effect is more significant in major grain-producing areas. Moreover, spatial analysis indicates that FS improvements in neighboring regions have a positive spillover effect on provincial FS, while GF development in neighboring regions negatively affects provincial FS, especially in grain-producing areas. These findings offer policy recommendations for government and relevant departments to enhance the synergistic effects of GF and FS.

Suggested Citation

  • Yuan, Zihao & Lee, Chien-Chiang & He, Zhi-Wen, 2025. "How does green finance improve food security? From the perspective of rural human capital," International Review of Economics & Finance, Elsevier, vol. 99(C).
  • Handle: RePEc:eee:reveco:v:99:y:2025:i:c:s1059056025001443
    DOI: 10.1016/j.iref.2025.103981
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    More about this item

    Keywords

    Green finance; Food security; Panel spatial Durbin quantile model; China;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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