Abstract
The worldwide Paris accord climate objectives for the residential construction industry were mainly implemented into national law as CO2 emission reduction standards for specific years (80% reduction by 2035). The main goal of this study is to test the association between credit subsidies and climate change mitigation. Chinese and Japanese data from 2010 to 2019, unit root test, and error correction modelling technique are employed. The results are then analysed using a regression formula. The findings show significant results: (i) credit subsidies are important in climate change mitigation in China and Japan, (ii) they significantly contribute to mitigating fiscal imbalances, and (iii) it boosts trade across countries. Moreover, providing credit subsidies to local households is a beneficial practice that can mitigate climate change by 36% in China and 29% in Japan. The modern world, including China and Japan, must improve its financial intermediation systems to provide credits for household for effective climate change mitigation.
Similar content being viewed by others
References
Agyekum EB, Amjad F, Mohsin M, Ansah MNS (2021) A bird’s eye view of Ghana’s renewable energy sector environment: a multi-criteria decision-making approach. Util Policy. https://doi.org/10.1016/j.jup.2021.101219
Asbahi AAMHA, Gang FZ, Iqbal W et al (2019) Novel approach of principal component analysis method to assess the national energy performance via energy trilemma Index. Energy Rep. https://doi.org/10.1016/j.egyr.2019.06.009
Boamah NA (2022) Segmentation, business environment and global informational efficiency of emerging financial markets. Q Rev Econ Financ 84:52–60. https://doi.org/10.1016/J.QREF.2022.01.010
Chabi Simin Najib D, Fei C, Dilanchiev A, Romaric S (2022) Modeling the impact of cotton production on economic development in benin: a technological innovation perspective. Front Environ Sci. https://doi.org/10.3389/fenvs.2022.926350
Chang L, Qian C, Dilanchiev A (2022) Nexus between financial development and renewable energy: empirical evidence from nonlinear autoregression distributed lag. Renew Energy 193:475–483. https://doi.org/10.1016/j.renene.2022.04.160
Chaudhry IS, Yusop Z, Habibullah MS (2022) Financial inclusion-environmental degradation nexus in OIC countries : new evidence from environmental Kuznets curve using DCCE approach, pp 5360–5377
Custodio M, Moulaert I, Asselman J et al (2022) Prioritizing ecosystem services for marine management through stakeholder engagement. Ocean Coast Manag 225:106228. https://doi.org/10.1016/J.OCECOAMAN.2022.106228
Fang W, Liu Z, Surya Putra AR (2022) Role of research and development in green economic growth through renewable energy development: empirical evidence from South Asia. Renew Energy 194:1142–1152. https://doi.org/10.1016/j.renene.2022.04.125
García-Pérez C, Prieto-Alaiz M, Simón H (2020) Multidimensional measurement of precarious employment using hedonic weights: evidence from Spain. J Bus Res. https://doi.org/10.1016/j.jbusres.2019.09.036
Iqbal W, Yumei H, Abbas Q et al (2019) Assessment of wind energy potential for the production of renewable hydrogen in Sindh Province of Pakistan. Processes. https://doi.org/10.3390/pr7040196
Iqbal N, Tufail MS, Mohsin M, Sandhu MA (2022) Assessing social and financial efficiency: the evidence from microfinance institutions in Pakistan. Pakistan J Soc Sci 39:149–161
Iram R, Zhang J, Erdogan S et al (2020) Economics of energy and environmental efficiency: evidence from OECD countries. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-019-07020-x
Irawan D, Okimoto T (2022) Conditional capital surplus and shortfall across renewable and non-renewable resource firms. Energy Econ. https://doi.org/10.1016/j.eneco.2022.106092
Khanfar AAA, Iranmanesh M, Ghobakhloo M et al (2021) Applications of blockchain technology in sustainable manufacturing and supply chain management: a systematic review. Sustain. https://doi.org/10.3390/su13147870
Li C, Umair M (2023) Does green finance development goals affects renewable energy in China. Renew Energy 203:898–905. https://doi.org/10.1016/j.renene.2022.12.066
Liu X, Tong D, Huang J et al (2022b) What matters in the e-commerce era? Modelling and mapping shop rents in Guangzhou, China. Land Use Policy 123:106430. https://doi.org/10.1016/j.landusepol.2022.106430
Liu F, Umair M, Gao J (2023) Assessing oil price volatility co-movement with stock market volatility through quantile regression approach. Resour Policy 81:103375. https://doi.org/10.1016/j.resourpol.2023.103375
Liu L, Li Z, Fu X, et al (2022a) Impact of power on uneven development: evaluating built-up area changes in chengdu based on NPP-VIIRS images (2015–2019). Land 11
Majumder S, Rahman M, Sarkar E, Dilanchiev A (2021) Determinations of urban migration: an experimental study of urban Migrants at Cumilla City in Bangladesh
Mohsin M, Nurunnabi M, Zhang J et al (2020a) The evaluation of efficiency and value addition of IFRS endorsement towards earnings timeliness disclosure. Int J Financ Econ. https://doi.org/10.1002/ijfe.1878
Mohsin M, Kamran HW, Atif Nawaz M et al (2021) Assessing the impact of transition from nonrenewable to renewable energy consumption on economic growth-environmental nexus from developing Asian economies. J Environ Manage. https://doi.org/10.1016/j.jenvman.2021.111999
Mohsin M, Zaidi U, Abbas Q, et al (2020b) Relationship between multi-factor pricing and equity price fragility: evidence from Pakistan. Int J Sci Technol Res 8
Odeyemi SO, Atoyebi OD, Kegbeyale OS et al (2022) Mechanical properties and microstructure of High-Performance Concrete with bamboo leaf ash as additive. Clean Eng Technol. https://doi.org/10.1016/j.clet.2021.100352
Pan W, Cao H, Liu Y (2023) “Green” innovation, privacy regulation and environmental policy. Renew Energy 203:245–254. https://doi.org/10.1016/j.renene.2022.12.025
Phung TQ, Rasoulinezhad E, Luong Thi Thu H (2022) How are FDI and green recovery related in Southeast Asian economies? Econ Chang Restruct. https://doi.org/10.1007/s10644-022-09398-0
Rasoulinezhad E (2020) Environmental impact assessment analysis in the Kahak’s wind farm. J Environ Assess Policy Manag 22:2250006. https://doi.org/10.1142/S1464333222500065
Rasoulinezhad E, Taghizadeh-Hesary F (2022) Role of green finance in improving energy efficiency and renewable energy development. Energy Effic 15:14. https://doi.org/10.1007/s12053-022-10021-4
Saboori B, Gholipour HF, Rasoulinezhad E, Ranjbar O (2022) Renewable energy sources and unemployment rate: Evidence from the US states. Energy Policy 168:113155. https://doi.org/10.1016/j.enpol.2022.113155
Si D-K, Li X-L, Huang S (2021) Financial deregulation and operational risks of energy enterprise: the shock of liberalization of bank lending rate in China. Energy Econ 93:105047. https://doi.org/10.1016/j.eneco.2020.105047
Taghizadeh-Hesary F, Li Y, Rasoulinezhad E et al (2022a) Green finance and the economic feasibility of hydrogen projects. Int J Hydrogen Energy 47:24511–24522. https://doi.org/10.1016/j.ijhydene.2022.01.111
Taghizadeh-Hesary F, Phoumin H, Rasoulinezhad E (2022b) COVID-19 and regional solutions for mitigating the risk of SME finance in selected ASEAN member states. Econ Anal Policy 74:506–525. https://doi.org/10.1016/j.eap.2022.03.012
Ullah K, Rashid I, Afzal H et al (2020) SS7 vulnerabilities—a survey and implementation of machine learning vs rule based filtering for detection of SS7 network attacks. IEEE Commun Surv Tutor 22:1337–1371. https://doi.org/10.1109/COMST.2020.2971757
Umair M, Dilanchiev A (2022) Economic recovery by developing business starategies: mediating role of financing and organizational culture in small and medium businesses. Proc B 683
Wu Q, Yan D, Umair M (2022) Assessing the role of competitive intelligence and practices of dynamic capabilities in business accommodation of SMEs. Econ Anal Policy. https://doi.org/10.1016/j.eap.2022.11.024
Xiuzhen X, Zheng W, Umair M (2022) Testing the fluctuations of oil resource price volatility: a hurdle for economic recovery. Resour Policy 79:102982. https://doi.org/10.1016/j.resourpol.2022.102982
Yoshino N, Rasoulinezhad E, Taghizadeh-Hesary F (2021) Economic impacts of carbon tax in a general equilibrium framework: empirical study of Japan. J Environ Assess Policy Manag 23:2250014. https://doi.org/10.1142/S1464333222500144
Zhang D, Mohsin M, Rasheed AK et al (2021) Public spending and green economic growth in BRI region: mediating role of green finance. Energy Policy. https://doi.org/10.1016/j.enpol.2021.112256
Zhao G, Qiu Y, Imran M, Manan F (2021) Customer knowledge enabled innovation: analyzing pricing-promotion coordination mechanism. Complexity. https://doi.org/10.1155/2021/5588724
Funding
This study was supported by Research on the Synergistic Mechanism and Path between Government Environmental Governance and Green Development of Private Enterprises under the "Double Carbon" Target (22BGL082).
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Ethics approval
Not applicable.
Conflict of interest
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
Financial or non-financial interests
Author declares no relevant financial or non-financial interests to disclose.
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Bie, F., Xiong, Y., Zhou, L. et al. Role of credit subsidies and financial intermediation in China and Japan: implications for green economic growth. Econ Change Restruct 56, 1925–1941 (2023). https://doi.org/10.1007/s10644-023-09501-z
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10644-023-09501-z