IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v78y2025ics027553192500251x.html

Green finance and agricultural climate resilience: Evidence from China

Author

Listed:
  • Zhang, Jinhua
  • Yu, Jiaqi
  • Ma, Shixuan
  • Li, Jun
  • Zhu, Zhe

Abstract

Using panel data from China between year 2011 and 2020, we examine the impact of green finance on agricultural climate resilience. The findings demonstrate that green finance significantly enhances agricultural climate resilience, a finding that remains robust across various methods. Furthermore, heterogeneity analysis reveals that the influence of green finance is more significant in the eastern and western regions, in the post-2016 period, and in areas with lower grain production. The study demonstrates that promoting agricultural green innovation and industrial optimization are essential mediators by which green finance enhances agricultural climate resilience. These findings offer critical insights for policymakers seeking to strengthen climate resilience in agricultural sector through green financing initiatives.

Suggested Citation

  • Zhang, Jinhua & Yu, Jiaqi & Ma, Shixuan & Li, Jun & Zhu, Zhe, 2025. "Green finance and agricultural climate resilience: Evidence from China," Research in International Business and Finance, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:riibaf:v:78:y:2025:i:c:s027553192500251x
    DOI: 10.1016/j.ribaf.2025.102995
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S027553192500251X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2025.102995?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Leslie Lipper & Romina Cavatassi & Ricci Symons & Alashiya Gordes & Oliver Page, 2021. "Financing adaptation for resilient livelihoods under food system transformation: the role of Multilateral Development Banks," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(6), pages 1525-1540, December.
    2. Charlotte Janssens & Petr Havlík & Tamás Krisztin & Justin Baker & Stefan Frank & Tomoko Hasegawa & David Leclère & Sara Ohrel & Shaun Ragnauth & Erwin Schmid & Hugo Valin & Nicole Van Lipzig & Miet M, 2020. "Global hunger and climate change adaptation through international trade," Nature Climate Change, Nature, vol. 10(9), pages 829-835, September.
    3. Ayars, J.E. & Christen, E.W. & Hornbuckle, J.W., 2006. "Controlled drainage for improved water management in arid regions irrigated agriculture," Agricultural Water Management, Elsevier, vol. 86(1-2), pages 128-139, November.
    4. Ben S. Bernanke & Mark Gertler, 1995. "Inside the Black Box: The Credit Channel of Monetary Policy Transmission," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 27-48, Fall.
    5. Rebecca Newman & Ilan Noy, 2023. "The global costs of extreme weather that are attributable to climate change," Nature Communications, Nature, vol. 14(1), pages 1-13, December.
    6. Lee, Chien-Chiang & Wang, Chang-song & He, Zhiwen & Xing, Wen-wu & Wang, Keying, 2023. "How does green finance affect energy efficiency? The role of green technology innovation and energy structure," Renewable Energy, Elsevier, vol. 219(P1).
    7. Markus K. Brunnermeier & Yuliy Sannikov, 2016. "On the Optimal Inflation Rate," American Economic Review, American Economic Association, vol. 106(5), pages 484-489, May.
    8. Zhang, Guowei, 2023. "The heterogeneous role of green finance on industrial structure upgrading - Based on spatial spillover perspective," Finance Research Letters, Elsevier, vol. 58(PC).
    9. Wang, Kai-Hua & Zhao, Yan-Xin & Jiang, Cui-Feng & Li, Zheng-Zheng, 2022. "Does green finance inspire sustainable development? Evidence from a global perspective," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 412-426.
    10. Markus K. Brunnermeier, 2024. "Presidential Address: Macrofinance and Resilience," Journal of Finance, American Finance Association, vol. 79(6), pages 3683-3728, December.
    11. Elzbieta Jadwiga Szymanska & Mariusz Dziwulski, 2021. "The Impact of Fixed Asset Investments on the Productivity of Production Factors in Agriculture," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 382-394.
    12. Subhasis Das & Biswajeet Pradhan & Pravat Kumar Shit & Abdullah M. Alamri, 2020. "Assessment of Wetland Ecosystem Health Using the Pressure–State–Response (PSR) Model: A Case Study of Mursidabad District of West Bengal (India)," Sustainability, MDPI, vol. 12(15), pages 1-18, July.
    13. Han, Yingwei & Li, Jie, 2022. "Should investors include green bonds in their portfolios? Evidence for the USA and Europe," International Review of Financial Analysis, Elsevier, vol. 80(C).
    14. Tran, Duc & Vu, Ha Thu & Goto, Daisaku, 2022. "Agricultural land consolidation, labor allocation and land productivity: A case study of plot exchange policy in Vietnam," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 455-473.
    15. Shen, Zhiyang & Wang, Songkai & Boussemart, Jean-Philippe & Hao, Yu, 2022. "Digital transition and green growth in Chinese agriculture," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    16. Frédéric Zahm & Philippe Viaux & Lionel Vilain & Philippe Girardin & Christian Mouchet, 2008. "Assessing farm sustainability with the IDEA method - from the concept of agriculture sustainability to case studies on farms," Sustainable Development, John Wiley & Sons, Ltd., vol. 16(4), pages 271-281.
    17. Xie, Qichang & Gong, Ruize & Yin, Lei & Xu, Xin, 2025. "Does extreme climate exacerbate the risk spillover in green finance markets? evidence from a multi-horizon investment perspective," Journal of International Money and Finance, Elsevier, vol. 151(C).
    18. Yang, Zongzhi & Li, Yali & Wu, Chanti, 2025. "Population aging, fintech, and agricultural economic resilience," International Review of Economics & Finance, Elsevier, vol. 97(C).
    19. Abson, D.J. & von Wehrden, H. & Baumgärtner, S. & Fischer, J. & Hanspach, J. & Härdtle, W. & Heinrichs, H. & Klein, A.M. & Lang, D.J. & Martens, P. & Walmsley, D., 2014. "Ecosystem services as a boundary object for sustainability," Ecological Economics, Elsevier, vol. 103(C), pages 29-37.
    20. Park, Bokyeong & Kennedy Ochieng, Haggai, 2024. "The impacts of rural development project on resilience to climatic disasters: The case of Bangladesh," World Development, Elsevier, vol. 180(C).
    21. Md. Abdur Rashid Sarker & Khorshed Alam & Jeff Gow, 2014. "Assessing the effects of climate change on rice yields: An econometric investigation using Bangladeshi panel data," Economic Analysis and Policy, Elsevier, vol. 44(4), pages 405-416.
    22. Gerrit Hansen & Wolfgang Cramer, 2015. "Global distribution of observed climate change impacts," Nature Climate Change, Nature, vol. 5(3), pages 182-185, March.
    23. Volkov, Artiom & Morkunas, Mangirdas & Balezentis, Tomas & Streimikiene, Dalia, 2022. "Are agricultural sustainability and resilience complementary notions? Evidence from the North European agriculture," Land Use Policy, Elsevier, vol. 112(C).
    24. Nepal, Rabindra & Jamasb, Tooraj, 2015. "Caught between theory and practice: Government, market, and regulatory failure in electricity sector reforms," Economic Analysis and Policy, Elsevier, vol. 46(C), pages 16-24.
    25. Arvind Krishnamurthy & Wenhao Li, 2025. "Dissecting Mechanisms of Financial Crises: Intermediation and Sentiment," Journal of Political Economy, University of Chicago Press, vol. 133(3), pages 935-985.
    26. Luo, Yuke & Liu, Shiyuan & Zhang, Yang & Zeng, Miao & Zhao, Dandi, 2025. "Digital pathways to resilience: Assessing the impact of digitalization on agricultural production resilience in China," China Economic Review, Elsevier, vol. 90(C).
    27. S. Rao Aiyagari, 1994. "Uninsured Idiosyncratic Risk and Aggregate Saving," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(3), pages 659-684.
    28. Nepal, Rabindra & Zhao, Xiaomeng & Liu, Yang & Dong, Kangyin, 2024. "Can green finance strengthen energy resilience? The case of China," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    29. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
    30. Nepal, Rabindra & Zhao, Xiaomeng & Dong, Kangyin & Wang, Jianda & Sharif, Arshian, 2025. "Can artificial intelligence technology innovation boost energy resilience? The role of green finance," Energy Economics, Elsevier, vol. 142(C).
    31. Wang, Xinyue & Wang, Qing, 2021. "Research on the impact of green finance on the upgrading of China's regional industrial structure from the perspective of sustainable development," Resources Policy, Elsevier, vol. 74(C).
    32. Xin Zhao & Ramzi Benkraiem & Mohammad Zoynul Abedin & Silu Zhou, 2024. "The charm of green finance: Can green finance reduce corporate carbon emissions?," Post-Print hal-04925274, HAL.
    33. Yuan, Xiao & Zhang, Jinlong & Shi, Jing & Wang, Jiachen, 2024. "What can green finance do for high-quality agricultural development? Fresh insights from China," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    34. Zhuang, Yanhua & Zhang, Liang & Li, Sisi & Liu, Hongbin & Zhai, Limei & Zhou, Feng & Ye, Yushi & Ruan, Shuhe & Wen, Weijia, 2019. "Effects and potential of water-saving irrigation for rice production in China," Agricultural Water Management, Elsevier, vol. 217(C), pages 374-382.
    35. Fang, Dan & Chen, Jiangqiang & Wang, Saige & Chen, Bin, 2024. "Can agricultural mechanization enhance the climate resilience of food production? Evidence from China," Applied Energy, Elsevier, vol. 373(C).
    36. Cui, Xiaomeng, 2020. "Climate change and adaptation in agriculture: Evidence from US cropping patterns," Journal of Environmental Economics and Management, Elsevier, vol. 101(C).
    37. Essossinam Ali & Aklesso Y. G. Egbendewe & Tahirou Abdoulaye & Daniel B. Sarpong, 2020. "Willingness to pay for weather index-based insurance in semi-subsistence agriculture: evidence from northern Togo," Climate Policy, Taylor & Francis Journals, vol. 20(5), pages 534-547, May.
    38. Ojo, T.O. & Baiyegunhi, L.J.S., 2020. "Determinants of climate change adaptation strategies and its impact on the net farm income of rice farmers in south-west Nigeria," Land Use Policy, Elsevier, vol. 95(C).
    39. Deng, Haiyan & Zheng, Wangyi & Shen, Zhiyang & Štreimikienė, Dalia, 2023. "Does fiscal expenditure promote green agricultural productivity gains: An investigation on corn production," Applied Energy, Elsevier, vol. 334(C).
    40. Belcher, K. W. & Boehm, M. M. & Fulton, M. E., 2004. "Agroecosystem sustainability: a system simulation model approach," Agricultural Systems, Elsevier, vol. 79(2), pages 225-241, February.
    41. Friend, Anthony M. & Rapport, David J., 1991. "Evolution of macro-information systems for sustainable development," Ecological Economics, Elsevier, vol. 3(1), pages 59-76, March.
    42. Oluwatoba J Omotilewa & Jacob Ricker-Gilbert & John Herbert Ainembabazi, 2019. "Subsidies for Agricultural Technology Adoption: Evidence from a Randomized Experiment with Improved Grain Storage Bags in Uganda," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(3), pages 753-772.
    43. Wang, Jiaqi & Tian, Jiaxin & Kang, Yuxin & Guo, Kun, 2023. "Can green finance development abate carbon emissions: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 73-91.
    44. Gao, Qiang & Sun, Mengyuan & Chen, Lu, 2024. "The impact of digital inclusive finance on agricultural economic resilience," Finance Research Letters, Elsevier, vol. 66(C).
    45. Yayun Ren & Zhongmin Ding & Junxia Liu, 2024. "How green finance boosts carbon efficiency in agriculture: a quasi-experiment from China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 16(2), pages 267-289, April.
    46. Nketiah, Emmanuel & Song, Huaming & Adjei, Mavis & Obuobi, Bright & Adu-Gyamfi, Gibbson, 2024. "Assessing the influence of research and development, environmental policies, and green technology on ecological footprint for achieving environmental sustainability," Renewable and Sustainable Energy Reviews, Elsevier, vol. 199(C).
    47. Baležentis, Tomas & Li, Tianxiang & Chen, Xueli, 2021. "Has agricultural labor restructuring improved agricultural labor productivity in China? A decomposition approach," Socio-Economic Planning Sciences, Elsevier, vol. 76(C).
    48. Hong, Harrison & Li, Frank Weikai & Xu, Jiangmin, 2019. "Climate risks and market efficiency," Journal of Econometrics, Elsevier, vol. 208(1), pages 265-281.
    49. Zhao, Xin & Benkraiem, Ramzi & Abedin, Mohammad Zoynul & Zhou, Silu, 2024. "The charm of green finance: Can green finance reduce corporate carbon emissions?," Energy Economics, Elsevier, vol. 134(C).
    50. Du, Kerui & Li, Pengzhen & Yan, Zheming, 2019. "Do green technology innovations contribute to carbon dioxide emission reduction? Empirical evidence from patent data," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 297-303.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liyan Yu & Shuying Chen & Sikai Wang, 2025. "The Impact of Green Finance on Agricultural Pollution: Analysis of the Roles of Farmer Behavior, Digital Infrastructure, and Innovation Capability," Sustainability, MDPI, vol. 17(15), pages 1-25, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zeng, Ming & Zhang, Weike, 2024. "Green finance: The catalyst for artificial intelligence and energy efficiency in Chinese urban sustainable development," Energy Economics, Elsevier, vol. 139(C).
    2. Kai-Hua Wang & Shu-Mei Li, 2025. "Green bonds and carbon prices: a dynamic relationship revealed," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(12), pages 28995-29018, December.
    3. Morshadul Hasan & Ariful Hoque, 2025. "Green finance and carbon emissions in the EU: moderating role of biofuels and technology," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(3), pages 907-924, September.
    4. Lu, Heyu & Li, Jiayang & Wu, Zongfa & Zeng, Yufeiyang, 2025. "Rethinking energy allocation: Can green finance be the solution? — Evidence from machine learning method," Energy, Elsevier, vol. 332(C).
    5. Zhou, Bo & Yu, Yang & Zhang, Cheng & Wang, Qunwei, 2025. "Achieving low-carbon urban sprawl and enhancing energy security through green finance," Economic Analysis and Policy, Elsevier, vol. 88(C), pages 1251-1265.
    6. Ma, Baolin & Li, Yongxin & Zhou, Bo & Jian, Yaode & Zhang, Cheng & An, Jin, 2025. "The green development mechanism of the Beijing-Tianjin-Hebei coordinated development strategy in China: Novel evidence of green finance," International Review of Economics & Finance, Elsevier, vol. 98(C).
    7. Lee, Chien-Chiang & Yuan, Zihao & Kang, Yongchao, 2024. "Green finance and land ecological security: A potential mechanism for sustainable development," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1222-1241.
    8. Guo, Bingnan & Feng, Weizhe & Lin, Ji, 2024. "The impact of green finance on labor income share: Evidence from green finance reform and innovation pilot zone," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1347-1358.
    9. Zhang, Jiarong & Li, Meijuan & Shen, Zijie, 2025. "Evaluation and improvement of agricultural green total factor energy efficiency: The perspective of the closest target," Socio-Economic Planning Sciences, Elsevier, vol. 99(C).
    10. Zhang, Qiufeng & Huang, Huan & Chen, Liang & Wang, Yushi, 2025. "How does green finance affect carbon emission intensity? The role of green technology innovation and internet development," International Review of Economics & Finance, Elsevier, vol. 99(C).
    11. Hou, Mengyang & Xie, Yalin & Lu, Weinan & Cui, Xuehua & Xi, Zenglei & Han, Yuxin, 2025. "Green finance drives the synergy of pollution control and carbon reduction in China: Dual perspective of effect and efficiency," Energy, Elsevier, vol. 330(C).
    12. Tan, Yingxue & Lin, Bo & Wang, Leyi, 2025. "Green finance and corporate environmental performance," International Review of Economics & Finance, Elsevier, vol. 98(C).
    13. Yuanhe Du & Tianhang Liu & Wei Shang & Jia Li, 2025. "Research on the Impact of Artificial Intelligence on Urban Green Energy Efficiency: An Empirical Test Based on Neural Network Models," Sustainability, MDPI, vol. 17(16), pages 1-47, August.
    14. Liu, Yang & Zhao, Xiaomeng & Dong, Kangyin & Jiang, Qingzhe, 2023. "Assessing the role of green finance in sustainable energy investments by power utilities: Evidence from China," Utilities Policy, Elsevier, vol. 84(C).
    15. Fu, Qian & Zhao, Shengliang, 2025. "Influence of green finance on new-quality productivity of enterprises: Evidence from Chinese A-share listed companies," International Review of Financial Analysis, Elsevier, vol. 105(C).
    16. Zhang, Chonghui & Wang, Cong & Jin, Huanhuan & Xu, Mo & Balezentis, Tomas & Agnusdei, Leonardo, 2025. "The impact of green finance on energy transition and carbon emission targets: Exploring the double threshold and spatial spillover effects among the regions," Structural Change and Economic Dynamics, Elsevier, vol. 73(C), pages 1-10.
    17. Zhang, Jintao & Lei, Xinghui & Su, Taoyong & Li, Ziyao, 2025. "Credit availability of energy-intensive industries in emerging economies: Do financially established firms have better access to credit?," Energy Economics, Elsevier, vol. 145(C).
    18. Liang, Qianxu & Wang, Chaonan & Li, Yongping, 2025. "How does green finance influence enterprise greenwashing tendencies? Theoretical and empirical evidence from China," International Review of Financial Analysis, Elsevier, vol. 106(C).
    19. Zhaoxia Wu & Xi Xu & Mai He, 2025. "The Impact of Green Finance on Urban Carbon Emission Efficiency: Threshold Effects Based on the Stages of the Digital Economy in China," Sustainability, MDPI, vol. 17(3), pages 1-30, January.
    20. Dong, Xiaotian & Wang, Kai-Hua & Tao, Ran & Sorana, Vătavu & Moldovan, Nicoleta-Claudia, 2024. "Is there a relationship between climate policy uncertainty and green finance? Evidence from bootstrap rolling window test," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 277-289.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:78:y:2025:i:c:s027553192500251x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.