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Evaluating green innovation and performance of financial development: mediating concerns of environmental regulation

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Abstract

This research measures the relationship between green innovation and the performance of financial development by using an econometric estimation during the year of 2000 to 2018 in 28 Chinese provinces. It is intended to explore the relative role of green technological innovation in driving green financial development in the west and central China, as well as how it influences economic growth in these regions. Ordinary least square (OLS) framework was utilized in mainland China to perform empirical studies by using an econometric estimation. This study claims that China has adopted research-based education system, while those for economic growth and expenditure in the regions while the innovation parts results shows that the  tertiary education were 12.42% and 13.53% versus the 10.50% and 10.6% in the eastern area. The research-based education increases the patents in green innovation and boosts the environmental policy. The financial development led to green technological development and innovation. Green innovation and financial development decrease the emissions, and it is apparent that as environmental regulations stimulate technical development, the superiority of human resources increases. The findings indicate that green financing reduces short-term lending, thus limiting clean energy overinvestment, while the long-term loans have little impact on renewable energy overinvestment, and the intermediary effect is unmaintainable. Meanwhile, the green financial growth will reduce renewable energy overinvestment and increase renewable energy investment productivity to certain amount.

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The data that support the findings of this study are openly available on request

Funding

This research is partly funded by University of Economics Ho Chi Minh City, Vietnam.

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Authors and Affiliations

  1. School of Finance and Accounting, Fuzhou University of International Studies and Trade, Fuzhou, 350202, China

    Ching-Chi Hsu, FengSheng Chien & Li Li

  2. School of Government, University of Economics Ho Chi Minh City, Ho Chi Minh City, Vietnam

    Ngo Quang-Thanh

  3. Faculty of Business, City University of Macau, Macau, China

    FengSheng Chien

  4. Faculty of International Tourism and Management, City University of Macau, Macau, China

    Li Li

  5. School of Finance and Economics, Jiangsu University, Zhenjiang, China

    Muhammad Mohsin

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  1. Ching-Chi Hsu
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  2. Ngo Quang-Thanh
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  3. FengSheng Chien
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  4. Li Li
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  5. Muhammad Mohsin
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Contributions

Ching-Chi Hsu: Conceptualization, data curation, methodology, writing-original draft

Quang-Thanh, Ngo: Data curation, visualization

FengSheng Chien: Visualization, supervision, editing

Li Li: Methodology, review, and editing

Muhammad Mohsin: Writing review and editing and software

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Correspondence to FengSheng Chien or Muhammad Mohsin.

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Hsu, CC., Quang-Thanh, N., Chien, F. et al. Evaluating green innovation and performance of financial development: mediating concerns of environmental regulation. Environ Sci Pollut Res 28, 57386–57397 (2021). https://doi.org/10.1007/s11356-021-14499-w

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