Nexus between green financing, economic risk, political risk and environment

Evidence from China

Bibliographic Data

ID15066576
AuthorsQi Qi Ning (Renmin University of China), Qi Ning (Renmin University of China), Song Lin Guo (Renmin University of China, corresponding author), Xiao Chang (0000-0002-0230-0416, Renmin University of China), Xiao Chen Chang (Renmin University of China)
Year2022
Volume35
Issue1
Pages4195-4219
Publication date2022-12-31
Open AccessYes
TypeARTICLE
VenueEconomic Research-Ekonomska Istraživanja (JOURNAL)
Journal identifiersISSN: 1331-677X • E-ISSN: 1848-9664
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/1331677x.2021.2012710
OpenAlexW4200500614
LanguageEN
Citations received3
References cited61

This study provides fresh evidence regarding the dynamic association that is believed to exist in relation to green finance (GF), economic growth (GDP), political risk (PR), economic risk (ER), and carbon dioxide (CO2) emissions. It therefore uses the dataset pertaining to China from most recent time-series – covering the period spanning from the years of 1990 to 2020, by employing the Morlet Wavelet Analysis technique. The empirical findings of the wavelet power spectrum reveal that green finance GF and ER are vulnerable in the short- and long-run, and the short-run, respectively. At the same time, no vulnerability has been observed in the GDP, PR, and CO2 emissions. In addition to this, the wavelet coherence also reveals the bidirectional causal association that exists between GF-CO2 and ER-CO2, but only in the short run. It must also be taken into consideration that the causal influence of CO2 is deemed to be greater than the GF and ER, respectively. Besides this, a bidirectional causal nexus also exists between the GDP and CO2 emissions, only in the long run. Furthermore, the association between the economic growths follows both the phase and antiphase associations. Moreover, the study also reveals that there is no significant causal link between the PR and CO2 emissions. The results emphasize that the significance of green finance investment will tend to increase with strict policy implications, stabilization or minimization of economic risk and political risk. The same will also take place while promoting environmentally friendly production via economic growth, so as to reduce CO2 emission in the region taken into account

China · Economics · Monetary economics · Political risk · Political science · Politics · Short run · Energy, Environment, and Transportation Policies · Energy, Environment, Economic Growth · Engineering · Market Dynamics and Volatility · Finance

Tools

Open DOIOpen Access