IDEAS home Printed from https://ideas.repec.org/a/eee/soceps/v94y2024ics0038012124001198.html
   My bibliography  Save this article

What can green finance do for high-quality agricultural development? Fresh insights from China

Author

Listed:
  • Yuan, Xiao
  • Zhang, Jinlong
  • Shi, Jing
  • Wang, Jiachen

Abstract

Achieving high-quality agricultural development is a fundamental requirement for addressing agricultural bottlenecks and significant social contradictions. Green finance provides reliable financial support and ecological guarantees for realizing high-quality agricultural development. This study utilizes Chinese panel data from 2007 to 2021, incorporating a two-way fixed effects model, a mediating effects model, and a threshold effects model to explore the impact and mechanism of green finance on the high-quality development of agriculture. Furthermore, it constructs a spatial Durbin model to expand the analysis of its impact from the perspective of the spatial spillover effect. The results reveal that green finance significantly contributes to high-quality agricultural development with a greater impact on the eastern regions and high-level agricultural regions of China. Science and technology innovation has bridged the green finance system and pushed high-quality agricultural development, with a contribution rate of 25.71%. A single threshold for economic development and technological innovation in green finance for high-quality agricultural development exhibit distinctly non-linear characteristics. In addition, expansive analysis shows that green finance can not only facilitate the high-quality development of local agriculture but also drive the high-level development of agriculture in neighboring regions through spatial spillover effects. To achieve this goal, the proposed countermeasures aim to enhance the service system of green financial support for agriculture, promote scientific and technological innovation, improve factor allocation efficiency, and tailor green financial support for critical agricultural areas based on local conditions.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:soceps:v:94:y:2024:i:c:s0038012124001198
    DOI: 10.1016/j.seps.2024.101920
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0038012124001198
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.seps.2024.101920?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Nadia Mansour, 2023. "Green Technology Innovation and Financial Services System: Evidence from China," Businesses, MDPI, vol. 3(1), pages 1-16, January.
    2. Ibrahim, Ridwan Lanre & Al-mulali, Usama & Ozturk, Ilhan & Bello, Ajide Kazeem & Raimi, Lukman, 2022. "On the criticality of renewable energy to sustainable development: Do green financial development, technological innovation, and economic complexity matter for China?," Renewable Energy, Elsevier, vol. 199(C), pages 262-277.
    3. Nihal Ahmed & Franklin Areche & Adnan Sheikh & Amine Lahiani, 2022. "Green Finance and Green Energy Nexus in ASEAN Countries: A Bootstrap Panel Causality Test," Post-Print hal-03810087, HAL.
    4. Ralph De Haas & Alexander Popov, 2023. "Finance and Green Growth," The Economic Journal, Royal Economic Society, vol. 133(650), pages 637-668.
    5. Ganjar Kurnia & Iwan Setiawan & Ahmad C. Tridakusumah & Gani Jaelani & Mahra A. Heryanto & Adi Nugraha, 2022. "Local Wisdom for Ensuring Agriculture Sustainability: A Case from Indonesia," Sustainability, MDPI, vol. 14(14), pages 1-13, July.
    6. Helfand, Steven M. & Taylor, Matthew P.H., 2021. "The inverse relationship between farm size and productivity: Refocusing the debate," Food Policy, Elsevier, vol. 99(C).
    7. He, Junming & Iqbal, Wasim & Su, Fangli, 2023. "Nexus between renewable energy investment, green finance, and sustainable development: Role of industrial structure and technical innovations," Renewable Energy, Elsevier, vol. 210(C), pages 715-724.
    8. Maximillian M. J. Kapa & Agus A. Nalle & Paul G. Tamelan & Worakamol Wisetsri, 2022. "The Impact of Green Finance, Agriculture Growth and Creativity on Carbon Emissions of High Carbon Emissions Producing Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 432-440, September.
    9. Dapeng Sun & Bintong Yu & Jun Ma, 2023. "Research on the Impact of Digital Empowerment on China’s Human Capital Accumulation and Human Capital Gap between Urban and Rural Areas," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    10. Xueru Zhang & Wei Song & Jingtao Wang & Bo Wen & Dazhi Yang & Shiliang Jiang & Yanbin Wu, 2020. "Analysis on Decoupling between Urbanization Level and Urbanization Quality in China," Sustainability, MDPI, vol. 12(17), pages 1-18, August.
    11. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    12. Nihal Ahmed & Zeeshan Hamid & Farhan Mahboob & Khalil Ur Rehman & Muhammad Sibt e Ali & Piotr Senkus & Aneta Wysokińska-Senkus & Paweł Siemiński & Adam Skrzypek, 2022. "Causal Linkage among Agricultural Insurance, Air Pollution, and Agricultural Green Total Factor Productivity in United States: Pairwise Granger Causality Approach," Agriculture, MDPI, vol. 12(9), pages 1-17, August.
    13. Jingyi Wang & Xiucheng Dong & Hui Qiao & Kangyin Dong, 2020. "Impact assessment of agriculture, energy and water on CO2 emissions in China: untangling the differences between major and non-major grain-producing areas," Applied Economics, Taylor & Francis Journals, vol. 52(60), pages 6482-6497, December.
    14. Bahman Peyravi & Kęstutis Peleckis & Artūras Jakubavičius, 2023. "Eco-Innovation Performance of Lithuania in the Context of European Environmental Policy: Eco-Innovation Indicators and Efficiency," Sustainability, MDPI, vol. 15(4), pages 1-18, February.
    15. Yucai Hu & Shaorui Du & Yukun Wang & Xinya Yang, 2023. "How Does Green Insurance Affect Green Innovation? Evidence from China," Sustainability, MDPI, vol. 15(16), pages 1-15, August.
    16. Levine, Ross, 2005. "Finance and Growth: Theory and Evidence," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 12, pages 865-934, Elsevier.
    17. Feng Wang & Wenna Fan & Xiangyan Lin & Juan Liu & Xin Ye, 2020. "Does Population Mobility Contribute to Urbanization Convergence? Empirical Evidence from Three Major Urban Agglomerations in China," Sustainability, MDPI, vol. 12(2), pages 1-20, January.
    18. Sitti Aida Adha Taridala & Wa Ode Alzarliani & Elys Fauziyah & Ilma Sarimustaqiyma Rianse & Putu Arimbawa, 2023. "Green Finance, Innovation, Agriculture Finance and Sustainable Economic Development: The Case of Indonesia s Provincial Carbon Emissions," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 271-280, January.
    19. Nihal Ahmed & Franklin Ore Areche & Adnan Ahmed Sheikh & Amine Lahiani, 2022. "Green Finance and Green Energy Nexus in ASEAN Countries: A Bootstrap Panel Causality Test," Energies, MDPI, vol. 15(14), pages 1-13, July.
    20. Haojia Wang & Dandan Zhao & Qiaowei Zhou & Qinhua Ke & Guanglong Dong, 2023. "The Coupling Relationship between Green Finance and Ecosystem Service Demand in China Based on an Improved Coupling Coordination Degree Model," Land, MDPI, vol. 12(3), pages 1-17, February.
    21. Ralph De Haas & Alexander Popov, 2025. "Correction to: ‘Finance and Green Growth’," The Economic Journal, Royal Economic Society, vol. 135(667), pages 1030-1030.
    22. Mingjia Chi & Qinyang Guo & Lincheng Mi & Guofeng Wang & Weiming Song, 2022. "Spatial Distribution of Agricultural Eco-Efficiency and Agriculture High-Quality Development in China," Land, MDPI, vol. 11(5), pages 1-15, May.
    23. Ying Tang & Menghan Chen, 2022. "The Impact of Agricultural Digitization on the High-Quality Development of Agriculture: An Empirical Test Based on Provincial Panel Data," Land, MDPI, vol. 11(12), pages 1-16, November.
    24. Adnan, Nadia & Nordin, Shahrina Md & bin Abu Bakar, Zulqarnain, 2017. "Understanding and facilitating sustainable agricultural practice: A comprehensive analysis of adoption behaviour among Malaysian paddy farmers," Land Use Policy, Elsevier, vol. 68(C), pages 372-382.
    25. Xufeng Cui & Ting Cai & Wei Deng & Rui Zheng & Yuehua Jiang & Hongjie Bao, 2022. "Indicators for Evaluating High-Quality Agricultural Development: Empirical Study from Yangtze River Economic Belt, China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1101-1127, December.
    26. 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.
    27. Emmanuel O. Fenibo & Grace N. Ijoma & Weiz Nurmahomed & Tonderayi Matambo, 2022. "The Potential and Green Chemistry Attributes of Biopesticides for Sustainable Agriculture," Sustainability, MDPI, vol. 14(21), pages 1-24, November.
    28. Yalin Mo & Dinghai Sun & Yu Zhang, 2023. "Green Finance Assists Agricultural Sustainable Development: Evidence from China," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    29. Wangfangyu Wan, 2023. "Green Financial Supervision Information System Based on Genetic Algorithm Optimization under Carbon Peaking and Carbon Neutrality Goals," Sustainability, MDPI, vol. 15(22), pages 1-16, November.
    30. 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.
    31. Lindikaya W. Myeki & Nicolette Matthews & Yonas T. Bahta, 2023. "Decomposition of Green Agriculture Productivity for Policy in Africa: An Application of Global Malmquist–Luenberger Index," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    32. Ayesha Afzal & Ehsan Rasoulinezhad & Zaki Malik, 2022. "Green finance and sustainable development in Europe," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 5150-5163, December.
    33. Rachana Devkota & Laxmi Prasad Pant & Helen Hambly Odame & Bimala Rai Paudyal & Kelly Bronson, 2022. "Rethinking gender mainstreaming in agricultural innovation policy in Nepal: a critical gender analysis," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 39(4), pages 1373-1390, December.
    34. 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).
    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. Xuan Liu & Xuexi Huo, 2024. "Green Finance, Land Transfer and China’s Agricultural Green Total Factor Productivity," Land, MDPI, vol. 13(12), pages 1-18, December.
    2. Jingyi Liang & Cuixia Qiao, 2025. "Digital Economy and High-Quality Agricultural Development: Mechanisms of Technological Innovation and Spatial Spillover Effects," Sustainability, MDPI, vol. 17(8), pages 1-28, April.
    3. Omri, Henda & Jarraya, Bilel & Kahia, Montassar, 2025. "Green finance for achieving environmental sustainability in G7 countries: Effects and transmission channels," Research in International Business and Finance, Elsevier, vol. 74(C).
    4. Li Mo & Song Chen & Shenwei Wan & Lei Zhou & Shiyuan Wang, 2025. "How Can the Protection of Important Agricultural Heritage Sites Contribute to the Green Development of Agriculture: Evidence from China," Agriculture, MDPI, vol. 15(2), pages 1-22, January.

    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. Nihal Ahmed & Zeeshan Hamid & Khalil Ur Rehman & Piotr Senkus & Nisar Ahmed Khan & Aneta Wysokińska-Senkus & Barbara Hadryjańska, 2023. "Environmental Regulation, Fiscal Decentralization, and Agricultural Carbon Intensity: A Challenge to Ecological Sustainability Policies in the United States," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    2. Deng, Qu & Huang, Garland & Li, Donghui & Yang, Shijie, 2024. "The impact of climate risk on corporate innovation: An international comparison," Journal of Multinational Financial Management, Elsevier, vol. 75(C).
    3. Mao, Hui & Zhou, Li & Ying, RuiYao & Pan, Dan, 2021. "Time Preferences and green agricultural technology adoption: Field evidence from rice farmers in China," Land Use Policy, Elsevier, vol. 109(C).
    4. Han, Lei & Xiao, Zijun & Yu, Yongze, 2024. "Environmental judicature and enterprises’ green technology innovation: A revisit of the porter hypothesis," Journal of Asian Economics, Elsevier, vol. 91(C).
    5. Siti Nurain Muhmad & Sadia Cheema & Akmalia Mohamad Ariff & Nik Fadhilah Nik Him & Siti Nasuha Muhmad, 2024. "Systematic literature review and bibliometric analysis of green finance and renewable energy development," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(6), pages 7342-7355, December.
    6. Ngo, Thanh & Trinh, Hai Hong & Haouas, Ilham & Ullah, Subhan, 2022. "Examining the bidirectional nexus between financial development and green growth: International evidence through the roles of human capital and education expenditure," Resources Policy, Elsevier, vol. 79(C).
    7. Nihal Ahmed & Franklin Ore Areche & Guillermo Gomer Cotrina Cabello & Pedro David Córdova Trujillo & Adnan Ahmed Sheikh & Mohamad G. Abiad, 2022. "Intensifying Effects of Climate Change in Food Loss: A Threat to Food Security in Turkey," Sustainability, MDPI, vol. 15(1), pages 1-12, December.
    8. Farah Roslan & Borhan Abdullah & Mohd Khairul Amri Kamarudin, 2023. "A panel data method towards the effectiveness of sources of finance in stimulating the realisation of renewable energy technologies: Empirical evidence for Asia‐Pacific," Australian Economic Papers, Wiley Blackwell, vol. 62(4), pages 693-722, December.
    9. Chen, Shiyi & Chen, Tao & Lou, Pingyi & Song, Hong & Wu, Chenyu, 2023. "Bank deregulation and corporate environmental performance," World Development, Elsevier, vol. 161(C).
    10. Long Qian & Yunjie Zhou & Ying Sun, 2023. "Regional Differences, Distribution Dynamics, and Convergence of the Green Total Factor Productivity of China’s Cities under the Dual Carbon Targets," Sustainability, MDPI, vol. 15(17), pages 1-26, August.
    11. Laeven, Luc & Popov, Alexander, 2023. "Carbon taxes and the geography of fossil lending," Journal of International Economics, Elsevier, vol. 144(C).
    12. Buchetti, Bruno & Miquel-Flores, Ixart & Perdichizzi, Salvatore & Reghezza, Alessio & Lin, Luca X., 2024. "Loan guarantee and portfolio greening: evidence from European credit registers," Working Paper Series 2916, European Central Bank.
    13. Huang, Zhen & Gao, Ning & Jia, Ming, 2023. "Green credit and its obstacles: Evidence from China's green credit guidelines," Journal of Corporate Finance, Elsevier, vol. 82(C).
    14. Hadjila Krifa-Schneider & Iuliana Matei & Abdul Sattar, 2022. "FDI, corruption and financial development around the world: A panel non-linear approach," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-04085351, HAL.
    15. Leonardo Gambacorta & Alessio Reghezza & Martina Spaggiari & Livia Pancotto, 2022. "Gender diversity in bank boardrooms and green lending: evidence from euro area credit register data," BIS Working Papers 1044, Bank for International Settlements.
    16. Pan, Junyu & Du, Lizhao & Wu, Haitao & Liu, Xiaoqian, 2024. "Does environmental law enforcement supervision improve corporate carbon reduction performance? Evidence from environmental protection interview," Energy Economics, Elsevier, vol. 132(C).
    17. Feng Zhou & Chunhui Wen, 2023. "Research on the Level of Agricultural Green Development, Regional Disparities, and Dynamic Distribution Evolution in China from the Perspective of Sustainable Development," Agriculture, MDPI, vol. 13(7), pages 1-47, July.
    18. Yahya, Farzan & Lee, Chien-Chiang, 2023. "Disentangling the asymmetric effect of financialization on the green output gap," Energy Economics, Elsevier, vol. 125(C).
    19. Khalique, Abdul & Wang, Yichen & Ahmed, Khalid, 2025. "Europe's environmental dichotomy: The impact of regulations, climate investments, and renewable energy on carbon mitigation in the EU-22," Energy Policy, Elsevier, vol. 198(C).
    20. Dunbar, Kwamie & Treku, Daniel N., 2025. "Do energy transition investment flows aid climate commitments?," Energy Economics, Elsevier, vol. 142(C).

    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:soceps:v:94:y:2024:i:c:s0038012124001198. 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/seps .

    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.