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Published on: July 24, 2016
Can green finance, green technologies, and environmental policy stringency leverage sustainability in China: evidence
Sahar Afshan1, Tanzeela Yaqoob2, Muhammad Saeed Meo3,4,5
1Department of Economics and Finance, Sunway Business School, Sunway University, Petaling Jaya, Malaysia.
Abstract:
Environmental sustainability is an umbrella approach depending on various climatic and economic policies. In doing so, the current study empirically evaluates the role of green finance, eco-innovation, and environmental policy stringency on the ecological footprint in China. To meet the objectives, the novel quantile autoregressive distributed lag (QARDL) approach was employed from 2000 to 2017. The outcomes reveal heterogeneous associations between the proposed variables. Manifestly, the QARDL estimation results demonstrate a positive impact between eco-innovation, green finance, and environmental policy stringency with the ecological footprints of China; however, the extent of the relationship is quantile dependent. The outcomes are further validated through the Wald test of parameter constancy. The bi-direction causality is observed among all variables at several quantiles. The current study offers policymakers helpful suggestions on enhancing the positive effects of environmentally supported innovation, green finance, and stringent environmental policies on the ecosystem.
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