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The Impact of Green Finance on Agricultural Pollution and Carbon Reduction: The Case of China

Author

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  • Li Cao

    (College of Economics & Management, Shanghai Ocean University, Shanghai 201306, China)

  • Jiaqi Gao

    (College of Economics & Management, Shanghai Ocean University, Shanghai 201306, China)

Abstract

Based on the double-carbon target, the agricultural sector has implemented the concept of being green and synergistically promoted pollution and carbon reduction. Positioned as a novel financial paradigm, green finance places greater emphasis on environmental stewardship compared to its traditional counterparts. This focus enhances resource allocation efficiency, thereby achieving the goal of reducing pollution and carbon emissions. To research the influence of green finance on agricultural pollution and carbon reduction, this study leverages panel data spanning 2011 to 2021 from 31 provinces, autonomous regions, and municipalities across China. It employs the fixed-effect model and mediating-effect model. The findings reveal that: (1) Green finance exerts a notable influence on reducing both pollution and carbon emissions in agriculture, with the latter showing a more pronounced effect. (2) Regional disparities exist in green finance, affecting agricultural pollution and carbon reduction. (3) By fostering technological innovation and optimizing industrial frameworks, green finance emerges as a catalyst for curbing surface pollution and carbon dioxide emissions in agriculture. On this basis, relevant suggestions are put forward to provide policy insights for improving the green financial system, which will help further promote carbon and pollution reduction.

Suggested Citation

  • Li Cao & Jiaqi Gao, 2024. "The Impact of Green Finance on Agricultural Pollution and Carbon Reduction: The Case of China," Sustainability, MDPI, vol. 16(14), pages 1-15, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:14:p:5832-:d:1431480
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    References listed on IDEAS

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    1. Yang, Li & Wang, Zi & Lee, Jong-In & Wang, Ting-Yong, 2025. "How does investment in agricultural insurance promote agricultural development? Mediating effect of green total factor productivity," Finance Research Letters, Elsevier, vol. 81(C).

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