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Green Finance Assists Agricultural Sustainable Development: Evidence from China

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  • Yalin Mo

    (School of Economics, Guangxi University, Nanning 530004, China
    Guangxi Development Strategy Institute, Nanning 530004, China)

  • Dinghai Sun

    (School of Economics, Guangxi University, Nanning 530004, China)

  • Yu Zhang

    (International Business School, Dongbei University of Finance and Economics, Dalian 116012, China)

Abstract

Whether green finance can promote agriculture to achieve carbon emission reduction is an important issue in agricultural sustainable development. Based on panel data on 30 provinces in China from 2011 to 2020, this paper established a mediation effect framework and employed stepwise regression and bootstrapping to study whether and how green finance can promote carbon emission reduction in China’s agricultural sector. The empirical research results indicate that the development of green finance can significantly reduce China’s agricultural carbon emission intensity. Using instrumental variables for robustness regression tests, the empirical results were also found to be robust. Further research found that green finance can not only directly promote agricultural carbon emission reduction but also indirectly facilitate it by optimizing the agricultural industrial structure and guiding agricultural technological progress. Finally, this article puts forward a number of policy recommendations to actively develop green finance, optimize the structure of the agricultural industry, and promote the progress of agricultural technology with the overarching aim of promoting the sustainable development of China’s agriculture through green finance.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2056-:d:1043525
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    Cited by:

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    2. Jelena Vapa Tankosić & Nemanja Lekić & Miroslav Čavlin & Vinko Burnać & Milovan Mirkov & Radivoj Prodanović & Gordana Bejatović & Nedeljko Prdić & Borjana Mirjanić, 2025. "Employee Perceptions of ESG Policy Implementation in Urban and Rural Financial Institutions," Agriculture, MDPI, vol. 15(15), pages 1-23, August.
    3. Tran Thi Kim Oanh, 2024. "Sustainable development: Driving force from the relationship between finance inclusion, green finance and green growth," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(3), pages 2811-2829, June.
    4. Dinh Le Quoc & Oanh Tran Thi Kim & Ha Nguyen Thi Hong, 2025. "Enhancing Green Growth: Exploring the Influence of Fiscal Spending and Green Finance," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 35(3), pages 69-91.
    5. 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.
    6. 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).
    7. Nan Chen, 2025. "The Impact of Agricultural Green Development on Farmers’ Income Quality in China," Sustainability, MDPI, vol. 17(18), pages 1-50, September.
    8. 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).
    9. Jianhua Liu & Yingying Zhang & Lingyu Pu & Liangchao Huang & Huiyang Wang & Muddassar Sarfraz, 2023. "Research on the Impact of Energy Efficiency on Green Development: A Case Study of the Yellow River Basin in China," Energies, MDPI, vol. 16(9), pages 1-19, April.

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