SpringerLink
Log in

Impact of green finance on industrial structure upgrading: implications for environmental sustainability in Chinese regions

  • Research Article
  • Published:
Environmental Science and Pollution Research Aims and scope Submit manuscript

Abstract

Marking green finance to revolutionize industrial structure and achieve environmental sustainability is increasingly critical. We explore the impact of green finance (GF) on industrial structure advancement and industrial structure rationalization employing the panel data of 30 Chinese provinces from 2011 to 2020 in terms of technology inputs, environmental regulation, and green technology innovation. Results indicate that GF significantly stimulates China’s industrial structure in both advanced and rationalization. The driving effect of GF on the industrial structure is mainly reflected in the advanced dimension of industrial structure in the eastern and economically developed area but mainly in the rationalization dimension of industrial structure in the economically less developed area. GF’s role in facilitating industrial structure upgrading largely depends on technology inputs, environmental regulation, and green technology innovation.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Subscribe and save

Springer+ Basic
EUR 32.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or Ebook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Price includes VAT (Germany)

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Data availability

Not applicable.

References

  • An TX, Hou XM, Yang Y (2017) Research on the theoretical connotation and realization path of green finance development in China. Dongyue Ser 38(06):92–100

    Google Scholar 

  • Berensmann K, Lindenberg N (2016) Green finance: actors, challenges and policy recommendations. German Development Institute/Deutsches Institut für Entwicklungspolitik (DIE) Briefing Paper. p 23. https://ssrn.com/abstract=2881922

    Google Scholar 

  • Cao J, Law SH, Samad ARBA, Mohamad WNBW, Wang J, Yang X (2022) Effect of financial development and technological innovation on green growth—analysis based on spatial Durbin model. J Clean Prod 365:132865

    Article  Google Scholar 

  • Chami R, Cosimano TF, Fullenkamp C (2002) Managing ethical risk: How investing in ethics adds value. J Bank Financ 26(9):1697–1718. https://doi.org/10.1016/S0378-4266(02)00188-7

    Article  Google Scholar 

  • Cowan E (1999) Topical issues in environmental finance. Res Pap Commissioned Asia Branch Can Int Dev Agency (CIDA) 1:1–20

    Google Scholar 

  • Dikau S, Volz U (2023) Out of the window? Green monetary policy in China: window guidance and the promotion of sustainable lending and investment. Clim Policy 23(1):122–137

    Article  Google Scholar 

  • Du K, Cheng Y, Yao X (2021) Environmental regulation, green technology innovation, and industrial structure upgrading: the road to the green transformation of Chinese cities. Energy Econ 98:105247

    Article  Google Scholar 

  • Falcone PM, Morone P, Sica E (2018) Greening of the financial system and fuelling a sustainability transition. Technol Forecast Soc Chang 127:23–37

    Article  Google Scholar 

  • Feng Y, Wu H (2022) How does industrial structure transformation affect carbon emissions in China: the moderating effect of financial development. Environ Sci Pollut Res 29:13466–13477. https://doi.org/10.1007/s11356-021-16689-y

    Article  Google Scholar 

  • Gao L, Tian Q, Meng F (2023) The impact of green finance on industrial reasonability in China: empirical research based on the spatial panel Durbin model. Environ Sci Pollut Res 30(22):61394–61410

    Article  Google Scholar 

  • Gao P, Wang Y, Zou Y, Su X, Che X, Yang X (2022) Green technology innovation and carbon emissions nexus in China: does industrial structure upgrading matter? Front Psychol 13:951172. https://doi.org/10.3389/fpsyg.2022.951172

    Article  PubMed  PubMed Central  Google Scholar 

  • Gilbert S, Zhao L (2017) The knowns and unknowns of China’s green finance. The Sustainable Infrastructure Imperative: Financing for Better Growth and Development [C]. New Climate Economy,London and Washington, DC

  • Gu B, Chen F, Zhang K (2021) The policy effect of green finance in promoting industrial transformation and upgrading efficiency in China: analysis from the perspective of government regulation and public environmental demands. Environ Sci Pollut Res 28(34):47474–47491

    Article  Google Scholar 

  • Hu J, Zhang H (2023) Has green finance optimized the industrial structure in China? Environ Sci Pollut Res 30(12):32926–32941. https://doi.org/10.1007/s11356-022-24514-3

    Article  Google Scholar 

  • Ibrahim RL, Ajide KB, Usman M, Kousar R (2022) Heterogeneous effects of renewable energy and structural change on environmental pollution in Africa: do natural resources and environmental technologies reduce pressure on the environment? Renew Energy 200:244–256

    Article  Google Scholar 

  • Irfan M, Razzaq A, Sharif A, Yang X (2022) Influence mechanism between green finance and green innovation: exploring regional policy intervention effects in China. Technol Forecast Soc Chang 182:121882

    Article  Google Scholar 

  • Jiakui C, Abbas J, Najam H, Liu J, Abbas J (2023) Green technological innovation, green finance, and financial development and their role in green total factor productivity: empirical insights from China. J Clean Prod 382:135131

    Article  Google Scholar 

  • Jian X, Afshan S (2023) Dynamic effect of green financing and green technology innovation on carbon neutrality in G10 countries: fresh insights from CS-ARDL approach. Econ Res - Ekonomska Istraživanja 36(2):2130389. https://doi.org/10.1080/1331677X.2022.2130389

    Article  Google Scholar 

  • **ru L, Changbiao Z, Ahmad B, Irfan M, Nazir R (2022) How do green financing and green logistics affect the circular economy in the pandemic situation: key mediating role of sustainable production. Econ Res-Ekonomska Istraživanja 35(1):3836–3856

    Article  Google Scholar 

  • Kumar K, Prakash A (2020) Managing sustainability in banking: extent of sustainable banking adaptations of banking sector in India. Environ Dev Sustain 22(6):5199–5217

    Article  Google Scholar 

  • Laeven L, Levine R, Michalopoulos S (2015) Financial innovation and endogenous growth. J Financ Intermediation 24(1):1–24. https://doi.org/10.1016/j.jfi.2014.04.001

    Article  Google Scholar 

  • Lee CC, Lee CC (2022) How does green finance affect green total factor productivity? Evidence from China. Energy Econ 107:105863

    Article  Google Scholar 

  • Lee CC, Wang F, Lou R, Wang K (2023) How does green finance drive the decarbonization of the economy? Empirical evidence from China, Renew Energy

    Google Scholar 

  • Li R (2021) Does Fintech promote the optimization of China’s industrial structure - an analysis based on the spatial and threshold effects. Econ Manag 05:53–62

    Google Scholar 

  • Li X, Yang Y (2022) Does green finance contribute to corporate technological innovation? The moderating role of corporate social responsibility. Sustainability 14(9):5648

    Article  Google Scholar 

  • Lin B, Zhou Y (2021) How does vertical fiscal imbalance affect the upgrading of industrial structure? Empirical evidence from China. Technol Forecast Soc Chang 170:120886

    Article  Google Scholar 

  • Linnenluecke MK, Smith T, McKnight B (2016) Environmental finance: a research agenda for interdisciplinary finance research. Econ Model 59:124–130

    Article  Google Scholar 

  • Liu X, Razzaq A, Shahzad M, Irfan M (2022) Technological changes, financial development and ecological consequences: a comparative study of developed and develo** economies. Technol Forecast Soc Chang 184:122004

    Article  Google Scholar 

  • Liu C, Tang C, Liu Z, Huang Y (2023) How does public environmental supervision affect the industrial structure optimization? Environ Sci Pollut Res 30(1):1485–1501

    Article  Google Scholar 

  • Ma W (2023) Dwindling regional environmental pollution through industrial structure adjustment and higher education development. Environ Sci Pollut Res 30(1):420–433

    Article  MathSciNet  Google Scholar 

  • Meo MS, Abd Karim MZ (2022) The role of green finance in reducing CO2 emissions: an empirical analysis. Borsa Istanbul Rev 22(1):169–178

    Article  Google Scholar 

  • Moghul UF, Safar-Aly SH (2014) Green sukuk: the introduction of Islam’s environmental ethics to contemporary Islamic finance. Geo Int’l Envtl l Rev 27:1

    Google Scholar 

  • Nian W, Dong X (2022) Spatial correlation study on the impact of green financial development on industrial structure upgrading. Front Environ Sci 10:1017159. https://doi.org/10.3389/fenvs.2022.1017159

    Article  Google Scholar 

  • Perez O, Stegmann O (2018) Transnational networked constitutionalism. J Law Soc 45:S135–S162

    Article  Google Scholar 

  • Procopio G, Trotta A, Strano E, Iannuzzi AP (2020) Green banking in Italy: current and future challenges. In Contemporary issues in sustainable finance (pp. 205–258). Palgrave Macmillan, Cham

  • Qi R, Qi L (2020) Can synergy effect exist between green finance and industrial structure upgrade in China? Open J Soc Sci 8(08):215

    Google Scholar 

  • Razzaq A, Yang X (2023) Digital finance and green growth in China: appraising inclusive digital finance using web crawler technology and big data. Technol Forecast Soc Chang 188:122262

    Article  Google Scholar 

  • Scholtens B, Dam L (2007) Banking on the equator are banks that adopted the equator principles different from non-adopters? World Dev 35(8):1307–1328

    Article  Google Scholar 

  • Shahbaz M, Nasir MA, Lahiani A (2022) Role of financial development in economic growth in the light of asymmetric effects and financial efficiency. Int J Financ Econ 27(1):361–383

    Article  Google Scholar 

  • Shao H, Ye B, Pan HR (2022) Energy conservation and emission reduction effects of fuel tax and assessment of economic impacts-based on the Bei**g 3E-CGE model. Lett Spat Resour Sci 15(3):377–399. https://doi.org/10.1007/s12076-021-00294-1

    Article  Google Scholar 

  • Tamazian A, Rao BB (2010) Do Economic, financial and institutional developments matter for environmental degradation? Evidence from transitional economies [J]. Energy Econ 32(1):137–145

    Article  Google Scholar 

  • Tao H, Zhuang S, Xue R, Cao W, Tian J, Shan Y (2022) Environmental finance: an interdisciplinary review. Technol Forecast Soc Change 179:121639. https://doi.org/10.1016/j.techfore.2022.121639

    Article  Google Scholar 

  • Thorsten B, Levine R, Loayza N (2000) Finance and the sources of growth. J Financ Econ 58:261–300

    Article  Google Scholar 

  • Wang X, Wang Q (2021) Research on the impact of green finance on the upgrading of China’s regional industrial structure from the perspective of sustainable development. Resour Policy 74:102436

    Article  Google Scholar 

  • Wang E, Liu X, Wu J, Cai D (2019) Green credit, debt maturity, and corporate investment—evidence from China. Sustainability 11(3):583

    Article  Google Scholar 

  • Wang L, Wang Yu, Liu S, Lu Y, Du X (2020a) Non-linear effects of financial development for industrial structure upgrading. Sci Res 02:239–251

    Google Scholar 

  • Wang SL, Chen FW, Liao B, Zhang C (2020b) Foreign trade, FDI and the upgrading of regional industrial structure in China: based on spatial econometric model. Sustainability 12(3):815

    Article  Google Scholar 

  • Wang W, Li Y (2022) Can green finance promote the optimization and upgrading of industrial structures?—Based on the intermediary perspective of technological progress. Front Environ Sci 10:919950. https://doi.org/10.3389/fenvs.2022.919950

    Article  Google Scholar 

  • Wang D, Wu D, Wang X (2013) An empirical study on financial development and industrial structure optimization in China - based on financial capital perspective. J **’an Jiaotong Univ (Social Science Edition) (05):1–6+21. https://doi.org/10.15896/j.xjtuskxb.2013.05.014

  • **e R, Teo TS (2022) Green technology innovation, environmental externality, and the cleaner upgrading of industrial structure in China—considering the moderating effect of environmental regulation. Technol Forecast Soc Chang 184:22020, 1

  • Xu S, Dong H (2023) Green finance, industrial structure upgrading, and high-quality economic development–intermediation model based on the regulatory role of environmental regulation. Int J Environ Res Public Health 20(2):1420

    Article  PubMed  PubMed Central  Google Scholar 

  • Xu L, Tan J (2020) Financial development, industrial structure and natural resource utilization efficiency in China. Resour Policy 66:101642

    Article  Google Scholar 

  • Yang L, Yang LX, Zhang ZT (2022a) Financial support, science and technology innovation and industrial structure upgrading. Account Econ Res 05:89–104

    Google Scholar 

  • Yang X, Liu X, Ran Q, Razzaq A (2023a) How does natural resource dependence influence industrial green transformation in China? Appraising underlying mechanisms for sustainable development at regional level. Resour Policy 86:104191

    Article  Google Scholar 

  • Yang X, Xu Y, Razzaq A, Wu D, Cao J, Ran Q (2023) Roadmap to achieving sustainable development: does digital economy matter in industrial green transformation? Sustain Dev 1–15. https://doi.org/10.1002/sd.2781

  • Yu H, Dong S, Fei H, Li F, Guan X, Jiang S (2022) Performance evaluation of regional fiscal expenditure for energy conservation and environmental protection based on a panel data model--a case in Shandong Province, China. Pol J Environ Stud 31(1):377–395. https://doi.org/10.15244/pjoes/138879

    Article  CAS  Google Scholar 

  • Zandalinas SI, Fritschi FB, Mittler R (2021) Global warming, climate change, and environmental pollution: recipe for a multifactorial stress combination disaster. Trends Plant Sci 26(6):588–599

    Article  CAS  PubMed  Google Scholar 

  • Zhang Y, Qian S-T (2022a) Green finance, environmental technology advancement bias and industrial structure clean-up. Res Manag 04:129–138

    Google Scholar 

  • Zhang RJ, Razzaq A (2022) Influence of economic policy uncertainty and financial development on renewable energy consumption in the BRICST region. Renew Energy 201:526–533

    Article  Google Scholar 

  • Zhang M, Sun X, Wang W (2020) Study on the effect of environmental regulations and industrial structure on haze pollution in China from the dual perspective of independence and linkage. J Clean Prod 256:120748

    Article  Google Scholar 

  • Zhang H, **ong P, Yang S, Yu J (2023) Renewable energy utilization, green finance and agricultural land expansion in China. Resour Policy 80:03163, 1

  • Zhang L, Saydaliev HB, Ma X (2022) Does green finance investment and technological innovation improve renewable energy efficiency and sustainable development goals. Renew Energy 193:991–1000. https://doi.org/10.1016/j.renene.2022.04.161

    Article  Google Scholar 

  • Zhao M, Zhao G (2021) Environmental regulation, local government and green responsibility behavior of resource-based enterprises-game analysis based on Foucault’s power thought and the interaction between government and enterprises. J Stat 2(04):12–27

    Google Scholar 

  • Zhao J, Shen J, Yan J, Yang X, Hao Y, Ran Q (2023a) Corruption, market segmentation and haze pollution: empirical evidence from China. J Environ Plan Manag 66(3):642–664

    Article  Google Scholar 

  • Zhao J, Taghizadeh-Hesary F, Dong K, Dong X (2023b) How green growth affects carbon emissions in China: the role of green finance. Econ Res - Ekonomska istraživanja 36(1):2090–2111

    Article  Google Scholar 

  • Zhou G, Zhu J, Luo S (2022) The impact of fintech innovation on green growth in China: mediating effect of green finance. Ecol Econ 193:107308

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. School of Economics & Management, Northwest University, **’an, 710127, China

    Jian Li

  2. School of Economics & Management, **’an University, **’an, 710065, China

    Jian Li

Authors
  1. Jian Li
    View author publications

    You can also search for this author in PubMed Google Scholar

Contributions

JL: conceptualization, project administration, writing—review and editing, writing—original draft, software, visualization, formal analysis, methodology, data curation, funding acquisition, supervision.

Corresponding author

Correspondence to Jian Li.

Ethics declarations

Ethics approval and consent to participate

Not applicable.

Consent for publication

Not applicable.

Competing interests

The authors declare no competing interests.

Additional information

Responsible Editor: Arshian Sharif

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Li, J. Impact of green finance on industrial structure upgrading: implications for environmental sustainability in Chinese regions. Environ Sci Pollut Res 31, 13063–13074 (2024). https://doi.org/10.1007/s11356-024-32001-0

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11356-024-32001-0

Keywords

Search

Navigation