Theoretical and Applied Economics
No. 4 / 2024 (641), Winter
Green finance and innovation input: the promoters of carbon neutrality in China
Wuchang University of Technology, China
Yating ZHU
Wuchang University of Technology, China
Adelina DUMITRESCU PECULEA
National University of Political Studies and Public Administration, Romania
Abstract. The purpose of this paper is to examine whether green finance and innovation are the drivers of carbon neutrality in China. In this study, a time-varying parametric vector autoregressive model with a stochastic fluctuation term is used to fully examine the evolving relationships among green finance, inputs for innovation, and the process of achieving carbon neutrality. The findings from the empirical research indicate that the advancement of green finance provides a consistent and enduring benefit to the ongoing process of carbon neutralization, while increasing innovation input can also achieve this positive contribution, but the impact is not as strong and sustainable as that of green finance. Moreover, in addition to the direct effects mentioned above, the results of this paper also demonstrate the positive contribution of increased innovative inputs to the development of green finance, and the tendency of this effect to expand in the future as time progresses. Against the backdrop of climate change, which poses a serious challenge to global development, the findings of this paper provide some practical insights into how China can achieve its carbon neutrality goal through the development of green finance and increased investment in innovation.
Contents
Digitalization and innovation: a regional perspective on their interaction
Assessing the macroeconomic challenges in Romania after the economic and financial crisis
Green finance and innovation input: the promoters of carbon neutrality in China
A simple model of online marketing, production, profit and growth
The relationship of digital payments, macroeconomic variables, and banking stability in developing Asia
Modelling the relationship between inflation and uncertainty with existence of structural break: evidence from Azerbaijan
Analysis of the global energy resources evolution in the context of the population growth
Assessing the impact of energy and macroeconomic shocks on the Romanian economy: a Bayesian VAR approach
Two faces of the same coin: integrated perspectives of public and private debt on the effects of interdependence on financial stability
Institutional quality and sustainability: empirical study in 11 MENA countries
The effect of population ageing on savings: a time series analysis for Türkiye
Workplace economics – How does the Impostor Syndrome affect organisational output?
COVID-19 and the labour market: regional shifts of human capital working in technology and employment
Validity of the environmental Kuznets Curve in Bangladesh under the role of financial development
The impact of doing business indicators on economic growth in emerging market economies: a cross-sectional analysis
The essential role of U.S.-China tensions: a fresh insight into the gold market
The dispersion of poverty in some Romanian rural areas – good examples of rural localities with the lowest poverty rates
The stability and Growth Pact in Practice: inefficiencies of previous debt rules and the way forward
Leaders in disguise: power, perception, and paradox – economics and the fragile authority of politicians
Investigating the corporate debt and real investment nexus: dynamics and challenges in a shifting financial landscape
The hidden economy revealed: profiling informal workers through random forest classification
The impact of oil price shocks on economic growth in Algeria
The determinants of political instability: the role of mining resources
Quantitative easing and its implications for contingent convertible triggers: an analytical perspective