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The Role of Green Finance in Promoting Economic Sustainability: An Assessment of Its Economic and Environmental Impacts

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  • Ke Meng

    (Zhengzhou College of Finance and Economics, China)

Abstract

Green finance plays a crucial role in promoting economic sustainability. This study explores how green finance drives economic growth and environmental improvements, analyzing its effects through a multi-level framework of macroeconomic variables, environmental performance, and regional industry differences. Results show green finance significantly boosts economic growth, reduces carbon emissions, and improves energy efficiency. From 2018 to 2024, China's carbon emission intensity per unit GDP will decrease by 3.5% annually, while GDP growth increases by about 0.8% for every 1 trillion yuan of green bond issuance. Scenario simulations indicate that with strong policy support and high market participation, carbon intensity could be reduced by nearly 50% by 2042. Based on these findings, the study offers targeted policy recommendations for advancing an eco-friendly financial system.

Suggested Citation

  • Ke Meng, 2025. "The Role of Green Finance in Promoting Economic Sustainability: An Assessment of Its Economic and Environmental Impacts," International Journal of Agricultural and Environmental Information Systems (IJAEIS), IGI Global Scientific Publishing, vol. 16(1), pages 1-24, January.
    • Handle: RePEc:igg:jaeis0:v:16:y:2025:i:1:p:1-24
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