IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i17p7520-d1467695.html
   My bibliography  Save this article

The Impact of Green Finance on Promoting Industrial Structure Upgrading: An Analysis of Jiangsu Province in China

Author

Listed:
  • Tao Xu

    (School of Economics and Management, Nanjing Tech University, No. 30 South Puzhu Road, Nanjing 211816, China
    Institute of Emergency Management and Policy, Nanjing Tech University, No. 30 South Puzhu Road, Nanjing 211816, China)

  • Zixi Zhu

    (School of Economics and Management, Nanjing Tech University, No. 30 South Puzhu Road, Nanjing 211816, China)

  • Tingqiang Chen

    (School of Economics and Management, Nanjing Tech University, No. 30 South Puzhu Road, Nanjing 211816, China)

Abstract

Climate change is a challenge facing all countries around the world. In response to the global climate change, China has pledged a two-stage carbon reduction goal of “dual carbon” to realize sustainable development. Industrial structure upgrading driven by green finance is an important way to reduce carbon emissions and achieve sustainable development. In this work, we investigate the impact of green finance on promoting industrial structure upgrading in Jiangsu province. We construct the grey correlation degree and coupling coordination degree model to analyze the relationship between green finance development and industrial structure upgrading with data from 13 prefecture-level cities in Jiangsu province from 2010 to 2021. The results demonstrate that green finance policies inhibit the financing tendencies of high-energy consumption industries and improve the financing difficulties of high-energy enterprises, forcing high-energy industries to transform and realize industrial upgrading. In addition, the improvement in green energy consumption structure and energy production efficiency will promote an improvement in carbon emission efficiency. Moreover, the development of green finance contributes to promoting industrial structure upgrading, putting forward new requirements for the development of green finance as well. Furthermore, the promotion of green finance and low-carbon industries provides a strong driving force for industrial structure upgrading as well as high-quality economic development in Jiangsu province. Therefore, the green finance policy system, as well as innovation in green financial products, needs to be further improved to accelerate industrial structure upgrading.

Suggested Citation

  • Tao Xu & Zixi Zhu & Tingqiang Chen, 2024. "The Impact of Green Finance on Promoting Industrial Structure Upgrading: An Analysis of Jiangsu Province in China," Sustainability, MDPI, vol. 16(17), pages 1-15, August.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:17:p:7520-:d:1467695
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/17/7520/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/17/7520/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zerbib, Olivier David, 2019. "The effect of pro-environmental preferences on bond prices: Evidence from green bonds," Journal of Banking & Finance, Elsevier, vol. 98(C), pages 39-60.
    2. William Brock & M. Taylor, 2010. "The Green Solow model," Journal of Economic Growth, Springer, vol. 15(2), pages 127-153, June.
    3. Xu Wang & Hong Fang & Wenyan Song, 2020. "Technical attribute prioritisation in QFD based on cloud model and grey relational analysis," International Journal of Production Research, Taylor & Francis Journals, vol. 58(19), pages 5751-5768, October.
    4. Wang, Xinyue & Wang, Qing, 2021. "Research on the impact of green finance on the upgrading of China's regional industrial structure from the perspective of sustainable development," Resources Policy, Elsevier, vol. 74(C).
    5. Amore, Mario Daniele & Schneider, Cédric & Žaldokas, Alminas, 2013. "Credit supply and corporate innovation," Journal of Financial Economics, Elsevier, vol. 109(3), pages 835-855.
    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. Yulei Zhang & Tao Xu & Songqiang Wu, 2024. "The Promoting Effect of Green Bonds on Reducing Carbon Emission Intensity Through Energy Structure Transition," Sustainability, MDPI, vol. 16(21), pages 1-18, October.

    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. Huacheng Rao & Dongxu Chen & Feichao Shen & Yangyang Shen, 2022. "Can Green Bonds Stimulate Green Innovation in Enterprises? Evidence from China," Sustainability, MDPI, vol. 14(23), pages 1-19, November.
    2. Alharbi, Samar S. & Al Mamun, Md & Boubaker, Sabri & Rizvi, Syed Kumail Abbas, 2023. "Green finance and renewable energy: A worldwide evidence," Energy Economics, Elsevier, vol. 118(C).
    3. Pang, Lidong & Zhu, Meng Nan & Yu, Haiyan, 2022. "Is green finance really a blessing for green technology and carbon efficiency?," Energy Economics, Elsevier, vol. 114(C).
    4. Peng, Wei & Xiong, Langyu, 2022. "Managing financing costs and fostering green transition: The role of green financial policy in China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 820-836.
    5. Xin, Baogui & Jiang, Kai & Santibanez Gonzalez, Ernesto D.R., 2024. "The coevolution effect of central bank digital currency and green bonds on the net-zero economy," Energy Economics, Elsevier, vol. 134(C).
    6. Ke Xu & Peiya Zhao, 2023. "Does Green Finance Promote Green Total Factor Productivity? Empirical Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-26, July.
    7. Barbara Su, 2023. "Banking practices and borrowing firms’ financial reporting quality: evidence from bank cross-selling," Review of Accounting Studies, Springer, vol. 28(1), pages 201-236, March.
    8. Manuel Ammann & Philipp Horsch & David Oesch, 2016. "Competing with Superstars," Management Science, INFORMS, vol. 62(10), pages 2842-2858, October.
    9. Liu, Haiying & Liu, Zexiao & Zhang, Chunhong & Li, Tianyu, 2023. "Transformational insurance and green credit incentive policies as financial mechanisms for green energy transitions and low-carbon economic development," Energy Economics, Elsevier, vol. 126(C).
    10. Tripathy, Prajukta & Jena, Pabitra Kumar & Mishra, Bikash Ranjan, 2024. "Systematic literature review and bibliometric analysis of energy efficiency," Renewable and Sustainable Energy Reviews, Elsevier, vol. 200(C).
    11. Cowling, Marc & Ughetto, Elisa & Lee, Neil, 2018. "The innovation debt penalty: Cost of debt, loan default, and the effects of a public loan guarantee on high-tech firms," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 166-176.
    12. Alessandro Moro, 2021. "Can capital controls promote green investments in developing countries?," Temi di discussione (Economic working papers) 1348, Bank of Italy, Economic Research and International Relations Area.
    13. Lebelle, Martin & Lajili Jarjir, Souad & Sassi, Syrine, 2022. "The effect of issuance documentation disclosure and readability on liquidity: Evidence from green bonds," Global Finance Journal, Elsevier, vol. 51(C).
    14. Yoshihiro Zenno & Kentaka Aruga, 2022. "Institutional Investors’ Willingness to Pay for Green Bonds: A Case for Shanghai," JRFM, MDPI, vol. 15(11), pages 1-16, November.
    15. Jesús Manuel Palma-Ruiz & Julen Castillo-Apraiz & Raúl Gómez-Martínez, 2020. "Socially Responsible Investing as a Competitive Strategy for Trading Companies in Times of Upheaval Amid COVID-19: Evidence from Spain," IJFS, MDPI, vol. 8(3), pages 1-13, July.
    16. Fabian Knorre & Martin Wagner & Maximilian Grupe, 2021. "Monitoring Cointegrating Polynomial Regressions: Theory and Application to the Environmental Kuznets Curves for Carbon and Sulfur Dioxide Emissions," Econometrics, MDPI, vol. 9(1), pages 1-35, March.
    17. Chen, Shenglan & Ma, Hui & Teng, Haimeng & Wu, Qiang, 2022. "Banking liberalization and corporate tax planning: Evidence from natural experiments," Journal of Corporate Finance, Elsevier, vol. 76(C).
    18. Stern, David I. & Gerlagh, Reyer & Burke, Paul J., 2017. "Modeling the emissions–income relationship using long-run growth rates," Environment and Development Economics, Cambridge University Press, vol. 22(6), pages 699-724, December.
    19. Hou, Qingsong & Hu, May & Yuan, Yuan, 2017. "Corporate innovation and political connections in Chinese listed firms," Pacific-Basin Finance Journal, Elsevier, vol. 46(PA), pages 158-176.
    20. Çağatay Bircan & Ralph De Haas, 2020. "The Limits of Lending? Banks and Technology Adoption across Russia," The Review of Financial Studies, Society for Financial Studies, vol. 33(2), pages 536-609.

    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:16:y:2024:i:17:p:7520-:d:1467695. 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.