Affiliations 

  • 1 School of Business and Economics, University Putra Malaysia, 43400, Seri Kembangan, Selangor, Malaysia
  • 2 School of Business and Economics, University Putra Malaysia, 43400, Seri Kembangan, Selangor, Malaysia. lawsh@upm.edu.my
  • 3 School of Economics and Management, Xinjiang University, Urumqi, 830047, China
  • 4 School of Economics and Management, Xinjiang University, Urumqi, 830047, China. yxdlovezt@126.com
Environ Sci Pollut Res Int, 2021 Sep;28(35):48053-48069.
PMID: 33904131 DOI: 10.1007/s11356-021-13828-3

Abstract

China's green growth has shown a trend of fluctuation year by year. Simultaneously, Chinese local governments have pursued simple economic growth driven by the interests of "political competition" for a long time, while the supervision of the ecological environment has been loosened and tightened. In this environment, financial development and technological innovation may easily become the accelerator of this phenomenon, thus exacerbating the fluctuation of green growth. To deeply excavate the key factors to achieve stable and sustained growth of green economy, based on the annual panel data of 30 provinces in China from 2011 to 2018, this paper studies the impact of financial development and technological innovation on the volatility of green growth using dynamic system GMM method. The findings of this paper are shown as follows: First, the expansion of financial institutions' scale will significantly enhance the volatility of green growth. Second, the increase in the scale of the stock market will also significantly cause green growth fluctuations. Third, the interaction between financial development and technological innovation can significantly weaken the volatility of green growth. Fourth, financial development measured by stock market indicators is more efficient than financial development measured by financial institutions indicators to curb the volatility of green growth. Fifth, the fluctuation of green growth in the previous period will reduce the volatility of green growth in the current period. This study provides new evidence for exploring the power source to promote the stability and sustainable growth of the green economy in the special stage of financial and technological integration. Controlling the development scale of financial institutions and removing their state preferences, expanding the development of capital markets, and deepening the integration of financial development and technological innovation are conducive to achieve stable green growth.

* Title and MeSH Headings from MEDLINE®/PubMed®, a database of the U.S. National Library of Medicine.