IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v47y2015i42p4535-4548.html
   My bibliography  Save this article

Climate threshold, financial hoarding and economic growth

Author

Listed:
  • Wencong Lu
  • Jianfeng Huang
  • Oliver Musshoff

Abstract

We use an iterative finite difference method to establish theoretical models that reflect the relationships among climate threshold, financial hoarding and economic growth. We build a simultaneous equations model to conduct an empirical analysis based on China's statistical data from 1979 to 2012. Our study yields the following results: China's climate threshold has shown a zigzag-shaped rising trend since 1979; the main reasons for the rapid expansion of financial hoarding were high savings rate, savings leakage, higher marginal efficiency of financial hoarding compared to capital efficiency or higher internal creativity of the financial sector; there were positive cumulative effects between financial hoarding and economic growth, which were significantly inhibited by climate threshold; the climate threshold had discrepant influences on different industries. To achieve a balanced economy, more money should be invested in the real sector to appropriately reduce the rate of savings leakage; the financial sector should move from scale expansion to service efficiency improvements to increase its marginal contribution to the economy and to enhance capital efficiency; the real sector should improve technological innovation and speed up the adaptive adjustment in climate-sensitive industries to move from economic growth to advanced development.

Suggested Citation

  • Wencong Lu & Jianfeng Huang & Oliver Musshoff, 2015. "Climate threshold, financial hoarding and economic growth," Applied Economics, Taylor & Francis Journals, vol. 47(42), pages 4535-4548, September.
    • Handle: RePEc:taf:applec:v:47:y:2015:i:42:p:4535-4548
    DOI: 10.1080/00036846.2015.1031873
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2015.1031873
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2015.1031873?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yizheng Fu & Zhifang Su & Qianqian Guo, 2021. "The Impact of Financial Hoarding on Economic Growth in China," Sustainability, MDPI, vol. 13(15), pages 1-20, July.
    2. Tiago Sequeira & Liliana Reis (ed.), 2019. "Climate Change and Global Development," Contributions to Economics, Springer, number 978-3-030-02662-2.
    3. Li, Guangchen & Wei, Weixian, 2021. "Financial development, openness, innovation, carbon emissions, and economic growth in China," Energy Economics, Elsevier, vol. 97(C).

    More about this item

    Statistics

    Access and download statistics

    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:taf:applec:v:47:y:2015:i:42:p:4535-4548. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    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.