Studying the nexus of green financing and sustainable development in China: Role of socioeconomic influences

Muhammad Haroon; Inam Ullah

doi:10.59400/fefs.v1i1.356

Muhammad Haroon Department of Economics, Ghazi University Dera Ghazi Khan Pakistan, Dera Ghazi Khan 32200, Pakistan
Inam Ullah Department of Economics, Allama Iqbal Open University, Islamabad 44000, Pakistan

Article ID: 356

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DOI: https://doi.org/10.59400/fefs.v1i1.356

Keywords: green finance; renewable energy sources; sustainable development; China; cross-country dependence (CD)

Abstract

The paper explores the concept of “green finance” and its role in addressing environmental issues through diverse funding strategies in China. It analyzes the factors driving renewable energy development in China from 2005 to 2022 using a unique method called “christened plate cointegration” and connectedness modeling. The study highlights the significance of encouraging environmentally responsible financing and involving private sector businesses in regional and global growth for long-term sustainability. The paper emphasizes the importance of cross-country dependence (CD) as a metric for analyzing interconnectedness between studied countries and suggests isolating the pass dependence for an impartial CD analysis. The study demonstrates that an increase in renewable energy usage leads to a rise in trademark registrations and financial development applications, and private sector involvement corresponds to the rise in trademarks and patents. Overall, the study emphasizes the significance of green financing in mitigating climate change and advancing sustainable growth, as well as the role played by private enterprises in local, national, and global development.

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