IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i19p14498-d1253942.html
   My bibliography  Save this article

North–South Differences and Formation Mechanisms of Green Finance in Chinese Cities

Author

Listed:
  • Haiyan Shang

    (School of Economics, Shandong University of Finance and Economics, Jinan 250014, China)

  • Susu Wang

    (School of Business, Liaocheng University, Liaocheng 252000, China)

  • Shuwen Chen

    (School of Accounting, West Yunnan University of Applied Sciences, Dali 671000, China)

  • Roengchai Tansuchat

    (Faculty of Economics, Chiang Mai University, Chiang Mai 50200, Thailand)

  • Jianxu Liu

    (School of Economics, Shandong University of Finance and Economics, Jinan 250014, China)

Abstract

This paper discusses the north–south difference in green finance in China and its internal mechanism. The entropy method is used to measure the green finance level in China from 2000 to 2022 through seven dimensions of green credit, green investment, green insurance, green support, green bonds, green funds, and green equity. The Dagum Gini coefficient and variance decomposition are used to reveal the differences and sources from the perspectives of north–south space and structure. The QAP method is utilized to explore formation mechanisms of differences. Research findings show that the overall level of green finance is not high, with the southern level higher than northern one. However, spatial differences in the green finance index have slightly narrowed, with regional differences being the major contributor to uneven distribution. Secondly, the difference in green funds is the main structural source of the difference in green finance, and the effect of the difference in green bonds and green funds on the difference in green finance increases from north to south, while the effect of the difference in green credit and green support decreases from north to south. This study will enrich the assessment indicator system, providing a reference for green finance differential situations and collaborative development strategies.

Suggested Citation

  • Haiyan Shang & Susu Wang & Shuwen Chen & Roengchai Tansuchat & Jianxu Liu, 2023. "North–South Differences and Formation Mechanisms of Green Finance in Chinese Cities," Sustainability, MDPI, vol. 15(19), pages 1-21, October.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:19:p:14498-:d:1253942
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/19/14498/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/19/14498/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christoph Nedopil & Truzaar Dordi & Olaf Weber, 2021. "The Nature of Global Green Finance Standards—Evolution, Differences, and Three Models," Sustainability, MDPI, vol. 13(7), pages 1-23, March.
    2. Yanhong Liu & Jia Lei & Yihua Zhang, 2021. "A Study on the Sustainable Relationship among the Green Finance, Environment Regulation and Green-Total-Factor Productivity in China," Sustainability, MDPI, vol. 13(21), pages 1-27, October.
    3. Lukas Stricker & Carlo Pugnetti & Joël Wagner & Angela Zeier Röschmann, 2022. "Green Insurance: A Roadmap for Executive Management," JRFM, MDPI, vol. 15(5), pages 1-19, May.
    4. Cristina Raluca Gh. Popescu & Gheorghe N. Popescu, 2019. "An Exploratory Study Based on a Questionnaire Concerning Green and Sustainable Finance, Corporate Social Responsibility, and Performance: Evidence from the Romanian Business Environment," JRFM, MDPI, vol. 12(4), pages 1-79, October.
    5. Goshu Desalegn & Anita Tangl, 2022. "Enhancing Green Finance for Inclusive Green Growth: A Systematic Approach," Sustainability, MDPI, vol. 14(12), pages 1-13, June.
    6. Abbas, Jawad & Wang, Lisu & Ben Belgacem, Samira & Pawar, Puja Sunil & Najam, Hina & Abbas, Jaffar, 2023. "Investment in renewable energy and electricity output: Role of green finance, environmental tax, and geopolitical risk: Empirical evidence from China," Energy, Elsevier, vol. 269(C).
    7. Love Kumar & Farah Nadeem & Maggie Sloan & Jonas Restle-Steinert & Matthew J. Deitch & Sohail Ali Naqvi & Avinash Kumar & Claudio Sassanelli, 2022. "Fostering Green Finance for Sustainable Development: A Focus on Textile and Leather Small Medium Enterprises in Pakistan," Sustainability, MDPI, vol. 14(19), pages 1-24, September.
    8. Sagarika Mohanty & Sudhansu Sekhar Nanda & Tushar Soubhari & Vishnu N S & Sthitipragyan Biswal & Shalini Patnaik, 2023. "Emerging Research Trends in Green Finance: A Bibliometric Overview," JRFM, MDPI, vol. 16(2), pages 1-17, February.
    Full references (including those not matched with items on IDEAS)

    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. Ming Chen & Lina Song & Xiaobo Zhu & Yanshuo Zhu & Chuanhao Liu, 2023. "Does Green Finance Promote the Green Transformation of China’s Manufacturing Industry?," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    2. David Almorza-Gomar & Rafael Ravina-Ripoll & Cristina Raluca Gh. Popescu & Araceli Galiano-Coronil, 2022. "Evaluation of an Experience of Academic Happiness through Football at University," IJERPH, MDPI, vol. 19(11), pages 1-13, May.
    3. Lee, Chien-Chiang & Wang, Fuhao & Lou, Runchi & Wang, Keying, 2023. "How does green finance drive the decarbonization of the economy? Empirical evidence from China," Renewable Energy, Elsevier, vol. 204(C), pages 671-684.
    4. Zhao, Xing & Guo, Yifan & Feng, Tianchu, 2023. "Towards green recovery: Natural resources utilization efficiency under the impact of environmental information disclosure," Resources Policy, Elsevier, vol. 83(C).
    5. Jana Kozáková & Mária Urbánová & Radovan Savov, 2021. "Factors Influencing the Extent of the Ethical Codes: Evidence from Slovakia," JRFM, MDPI, vol. 14(1), pages 1-18, January.
    6. Chen, Zhiguo & Gao, Wei & Zafar, Quratulain & Dördüncü, Hazar, 2023. "Natural resources extraction and geopolitical risk: Examining oil resources extraction in China," Resources Policy, Elsevier, vol. 85(PA).
    7. Liu, Qingrui & Tang, Lu, 2022. "Research on the accelerating effect of green finance on the transformation of energy consumption in China," Research in International Business and Finance, Elsevier, vol. 63(C).
    8. Maria Luisa Scalvedi & Laura Rossi, 2021. "Comprehensive Measurement of Italian Domestic Food Waste in a European Framework," Sustainability, MDPI, vol. 13(3), pages 1-17, February.
    9. Mathias Lund Larsen, 2023. "Bottom-up market-facilitation and top-down market-steering: comparing and conceptualizing green finance approaches in the EU and China," Asia Europe Journal, Springer, vol. 21(1), pages 61-80, March.
    10. Xiaokai Meng & Ghulam Muhammad Shaikh, 2023. "Evaluating Environmental, Social, and Governance Criteria and Green Finance Investment Strategies Using Fuzzy AHP and Fuzzy WASPAS," Sustainability, MDPI, vol. 15(8), pages 1-19, April.
    11. Boyang Chen & Canghong Wang, 2024. "Circular economy and biomass utilization: economic prospect for sustainable energy transition in China," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-27, April.
    12. Pan, Yuling & Dong, Feng, 2023. "The impacts of energy finance policies and renewable energy subsidy on energy vulnerability under carbon peaking scenarios," Energy, Elsevier, vol. 273(C).
    13. Sardar Muhammad Usman & Farasat Ali Shah Bukhari & Huiwei You & Daniel Badulescu & Darie Gavrilut, 2020. "The Effect and Impact of Signals on Investing Decisions in Reward-Based Crowdfunding: A Comparative Study of China and the United Kingdom," JRFM, MDPI, vol. 13(12), pages 1-20, December.
    14. Samira Ben Belgacem & Ghousia Khatoon & Abad Alzuman, 2023. "Role of Renewable Energy and Financial Innovation in Environmental Protection: Empirical Evidence from UAE and Saudi Arabia," Sustainability, MDPI, vol. 15(11), pages 1-11, May.
    15. Love Kumar & Farah Nadeem & Maggie Sloan & Jonas Restle-Steinert & Matthew J. Deitch & Sohail Ali Naqvi & Avinash Kumar & Claudio Sassanelli, 2022. "Fostering Green Finance for Sustainable Development: A Focus on Textile and Leather Small Medium Enterprises in Pakistan," Sustainability, MDPI, vol. 14(19), pages 1-24, September.
    16. Lu, Yuchen & Gao, Yuqiang & Zhang, Yu & Wang, Junrong, 2022. "Can the green finance policy force the green transformation of high-polluting enterprises? A quasi-natural experiment based on “Green Credit Guidelines”," Energy Economics, Elsevier, vol. 114(C).
    17. Wan, Qilong & Miao, Xiaodong & Afshan, Sahar, 2022. "Dynamic effects of natural resource abundance, green financing, and government environmental concerns toward the sustainable environment in China," Resources Policy, Elsevier, vol. 79(C).
    18. Dariusz Klimek, 2020. "Sustainable Enterprise Capital Management," Economies, MDPI, vol. 8(1), pages 1-10, February.
    19. Shubham Kakran & Nishant Sapra & Ashish Kumar & Arpit Sidhu, 2024. "Interrelationship dynamics between stock markets of nation under debt crisis and its major trading partners: evidence from Sri Lankan crisis," Future Business Journal, Springer, vol. 10(1), pages 1-15, December.
    20. Guang-Wen Zheng & Abu Bakkar Siddik & Mohammad Masukujjaman & Nazneen Fatema, 2021. "Factors Affecting the Sustainability Performance of Financial Institutions in Bangladesh: The Role of Green Finance," Sustainability, MDPI, vol. 13(18), pages 1-27, September.

    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:gam:jsusta:v:15:y:2023:i:19:p:14498-:d:1253942. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.