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The Transformative Impacts of Green Finance Governance on Construction-Related CO 2 Emissions

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  • Zhijuan Li

    (Department of Economics and Management, Wuhan University, Wuhan 430072, China)

  • Liang Wu

    (Department of Economics and Management, Wuhan University, Wuhan 430072, China)

  • Zemin Zhang

    (Dong FuReng Economic & Social Development School, Wuhan University, Wuhan 430072, China)

  • Rui Chen

    (Dong FuReng Economic & Social Development School, Wuhan University, Wuhan 430072, China)

  • Yinjuan Jiang

    (Economic College, Hunan Agricultural University, Changsha 410125, China)

  • Yuting Peng

    (Department of Economics and Management, Wuhan University, Wuhan 430072, China)

  • Kaixin Zheng

    (Academy of Development, Wuhan University, Wuhan 430072, China)

  • Wen Jiang

    (Economic College, Hunan Agricultural University, Changsha 410125, China)

Abstract

In the context of the commitment to peak carbon emissions by 2030, specific sectors in China should take responsibility to change their energy consumption patterns. In China and across the globe, the construction sector is a major source of carbon dioxide emissions, as well as an indicator of economic growth and structural transformation. In this study, we examine panel data for 30 provinces or regions from 2008 to 2019 to dissect which macro-factors contribute to growth in carbon emissions, and which will lead to carbon emission reductions. Derived by the entropy method, the Green Finance Index is a comprehensive environmental regulation index related to reduction in emissions in each province. It presents an N shape for construction emissions, and provinces are currently striving to cross the first inflection point, which will help to curb emissions. Judging from the combined effects of this and other structural factors, the Green Finance Index can promote the decarbonization of production by playing the role of guiding and screening capital allocation. Population expansion, income levels, and financial development initially stimulate demand for construction, but their effects eventually level off. This paper can serve as a reference for developing countries that are experiencing industrialization and urbanization processes and handling gas discharge pressure at the same time.

Suggested Citation

  • Zhijuan Li & Liang Wu & Zemin Zhang & Rui Chen & Yinjuan Jiang & Yuting Peng & Kaixin Zheng & Wen Jiang, 2022. "The Transformative Impacts of Green Finance Governance on Construction-Related CO 2 Emissions," Sustainability, MDPI, vol. 14(16), pages 1-17, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:16:p:9853-:d:884448
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    References listed on IDEAS

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    Cited by:

    1. Qadri, Hussain Mohi ud Din & Ali, Hassnian & Abideen, Zain ul & Jafar, Ahmad, 2024. "Mapping the Evolution of Green Finance Research and Development in Emerging Green Economies," Resources Policy, Elsevier, vol. 91(C).
    2. Ya-Li Liu & Jin-Rong Zhang & Hong-Bo Li, 2025. "Has Digital Industrialization Promoted Carbon Emission Reduction in the Construction Industry?," Sustainability, MDPI, vol. 17(7), pages 1-23, April.

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