Nexus between energy policy and environmental performance in China: The moderating role of green finance adopted firms

Modeling green energy and innovation for ecological risk management using second generation dynamic quantile panel data model

Ecological risk management has emerged as a critical research and policy development area in energy and environmental economics. Sustained ecology is crucial for the standard of living and food security. As the adverse impacts of environmental degradation and climate change become increasingly apparent it is imperative to understand ecological risk and its interconnectedness with environmental pressure, clean energy, economic activity, globalization, and green technology. Ecological risk is assessed using the environmental performance index which is a holistic indicator of climate change, environmental pressures and human actions in which most of these indicators have spatial effects. This paper explores the multifaceted relationship between identified anthropogenic critical factors and their role in effectively managing ecological risk globally. This study has developed the second-generation dynamic panel quantile regression considering spatial effects of economic activities on ecology across borders of 55 countries between 1995 and 2022. This innovative hybrid estimation scheme that integrated theoretical and econometric aspects makes the model robust to major regression issues. Several implications ranked in decreasing order of its effectiveness are reducing environmental pressure, expediting energy transition, and embracing economic integration while there is a need to work on rejuvenating green technology and green growth.

Decarbonizing progress: Exploring the nexus of renewable energy, digital economy, and economic development in South American countries

Examining the relationship between green energy, the digital economy, and economic advancement in eighteen South American nations, the study used the Principal Component Factor (PCF) approach. A Green Energy Transition Index (GETI) and a Digital Economy Index (DEI) were developed as a consequence of this study. Confirmation of the large influence of switching to green energy on economic development and environmental sustainability is provided by the research's use of Fixed Effect Panel Threshold Regression (FEPTR) analysis. In today's global industrial value chain, hydrocarbons are the main source of energy. As a result, it hastened the decarburization of the world energy system to lower the noteworthy quantities of CO2 emissions from these sources. All quantile groups' economic development is strongly impacted by the digital economy and the move to green energy, according to the Methodology of instants of quantile regression (MMQR). The only element that positively impacts environmental sustainability across all quantile groups is the switch to Green energy. Reducing CO2 emissions and increasing economic development are characteristics of the low-quantile group. While the median quantile group does see a decrease in carbon dioxide emissions, economic growth remains stagnant.

Effect of green finance reform and innovation pilot zone on improving environmental pollution: an empirical evidence from Chinese cities

Under the strategic deployment of dual carbon goals, China has entered the stage of high-quality development of low-carbon economic transformation. Green finance is an important tool to provide financing support for the development of green low-carbon projects and prevent environmental and climate financial risks. Whether and how it can help the implementation of the dual carbon goals is worth pondering and studying. Based on this background, this study considers the green finance reform and innovation pilot policy zone jointly issued by the Central People's Bank of China, National Development, and Reform Commission in 2017 as a natural experiment. Based on the panel data of 288 cities nationwide from 2010 to 2019, the effect of emission reduction is estimated using the PSM-DID method. The following conclusions are drawn: (1) The green finance policy has effectively improved the city's environmental quality, and the pilot effect of green finance has a certain lag on SO₂ emissions and industrial smoke (dust) emissions; (2) the mechanism inspection shows that the policy mechanism has promoted the technological innovation level, sewage treatment capacity, and garbage harmless treatment capacity of the pilot area to a certain extent; and (3) the impact of green finance policy on environmental quality has regional and industrial characteristics heterogeneity. The green finance pilot policy in eastern and central regions will inhibit SO₂ emissions, but the emission reduction effect in western regions is not significant; The implementation of the pilot policy of the green financial reform and innovation pilot zone has significantly reduced the sulfur dioxide emissions of the old industrial base cities, but the effect of the policy on non-old industrial bases is not obvious. The research conclusion has important enlightenment significance for further improving the construction of financial system, promoting the green transformation of regional industry, and improving the quality of urban environment.

Is the Renewable Portfolio Standard in China Effective? Research on RPS Allocation Efficiency in Chinese Provinces Based on the Zero-Sum DEA Model

As one of the countries with the most rapid development of new energy, China has been committed to exploring countermeasures to the challenges of new energy consumption. After more than ten years of consideration and consultation, the “renewable portfolio standard“(RPS) for “renewable energy power consumption responsibility weighting” has landed in China. However, in the official affirmation issued by the National Energy Administration, theoretical support for the basis of the initial quota allocation is still lacking. In this study, we examine the efficiency of the weight allocation scheme for renewable energy power consumption responsibilities, which was announced by the National Energy Administration in 2018 and which is based on the BCC-DEA efficiency model. The results indicate that most provinces have low allocation efficiency under this allocation scheme. Therefore, we propose an optimal allocation scheme for a renewable energy consumption quota, based on the ZSG-DEA model. With the achievement of its target, this study’s allocation scheme would ensure 100% efficiency in all provinces, improve provincial economic efficiency, and simultaneously bring economic growth. After analyzing the fairness before and after adjustment of the RPS, our findings suggest that the adjusted RPS allocation scheme can promote equity in per capita renewable electricity consumption.

Do entrepreneurial orientation and intellectual capital influence SMEs' growth? Evidence from Pakistan

This research analyzes the impacts of intellectual capital (IC) and the balancing power of entrepreneurial orientation (EO) on innovation growth (IG) in Pakistan's SME sector. A quantitative approach on smart PLS has been applied through the SEM model, backed by a survey to gather primary data from 256 participants of Pakistan's SME sector. A significant effect of human capital on Pakistani firms' IG was identified. In contrast, the effect of structural capital was determined to be insignificant over the IG of Pakistani firms. On the other hand, the customer capital's effect was also significant over Pakistani firms' innovation growth. Little moderation of EO between human capital and IG has been determined. The moderations of "EO between human capital and innovation growth" and "EO between structural capital and innovation growth" were insignificant. However, the moderation of EO between customer capital and IG was significant. The scope of this study is limited to firms in Pakistan and can be extended to firms in other regions, which can provide broad findings.

Multidimensional perspective of green financial innovation between green intellectual capital on sustainable business: the case of Pakistan

This study investigates the multifaceted role of green innovation among green intellectual capitals (GICs) on business sustainability in Pakistan's manufacturing sector. A quantitative method based on the SEM model on SmartPLS and Stata analysis was used, which was supplemented by a survey of 800 Pakistani SME sector supply chain-associated participants. The findings revealed a significant effect of green intellectual capital and green innovation on business sustainability, while structural capital was found to have a significant moderating effect on the business sustainability of Pakistani firms. It has been determined that the relationship between GIC and BS has a strong moderation of green innovation. Furthermore, the relationship and impact of GICs on the business sustainability of Pakistani manufacturing companies were statistically significant, and green innovation played a moderating role between GIC and business sustainability. Therefore, it has been suggested that Pakistani manufacturing companies participate in eco-innovation to progress business sustainability.

A Study on the Sustainable Relationship among the Green Finance, Environment Regulation and Green-Total-Factor Productivity in China

Exploring the mechanism and constraints of Green Finance on high-quality economic development is of great significance to achieve the strategic goal of carbon peak and carbon neutral. Based on the panel data of 30 provinces in China from 2009 to 2019, this paper uses the epsilon-based measure model and entropy method to measure the total factor rate of green economy and the development level of green finance. It then brings green finance, technological innovation, industrial structure upgrading, environmental supervision and high-quality economic development into a unified research framework for the first time. By constructing a panel two-way fixed effect model, regulatory intermediary effect model and threshold effect model, this paper empirically tests the action mechanism and constraints between green finance and high-quality economic development. The results show that: (1) The spatial evolution of green finance in China presents a gradient decreasing pattern from east to middle to west, coastal to inland, and the spatial evolution presents an obvious southwest-northeast pattern. (2) Green finance does have a significant role in promoting high-quality economic development, in which technological innovation and industrial structure upgrading play a part of the intermediary role. This conclusion is still valid under the robustness test of lagged explanatory variables and after the possible endogenous problems are alleviated by the difference-in-difference model (DID). (3) Environmental regulation plays a non-linear regulatory role in the relationship between green finance and high-quality economic development, and there is a single threshold value. Too high intensity of environmental regulation will weaken green finance, resulting in the innovation compensation effect being more diminutive than the circular cost effect. At this time, the high-quality economic development presents a state of diminishing marginal benefits.