Does financial stability inspire environmental innovation? Empirical insights from China

Environment-related innovations are widely appreciated as a vital factor in achieving sustainable development goals, and stability in the financial sector can help boost the output of environmental innovations by removing financial constraints. Hence, the primary aim of the analysis is to investigat...

Full description

Saved in:
Bibliographic Details
Published in:Journal of cleaner production Vol. 416; p. 137896
Main Author: Alzakri, Sultan
Format: Journal Article
Language:English
Published: Elsevier Ltd 01-09-2023
Subjects:
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Environment-related innovations are widely appreciated as a vital factor in achieving sustainable development goals, and stability in the financial sector can help boost the output of environmental innovations by removing financial constraints. Hence, the primary aim of the analysis is to investigate the impact of financial stability on environmental innovation in China by using the QARDL model over the period 1995Q1-2020Q4. The study's main findings confirm the positive role of financial stability on environmental innovation in both the short and long run. Wald test also confirms the asymmetric impact of financial stability on environmental innovation in the short and long run. Moreover, the long-run impacts of GDP, R&D activities, and environmental policy stringency on environmental innovation are positive. In the short run, the estimates of research and development and environmental policy stringency are positively significant at higher quantiles only. Based on the findings, our research will help policymakers to develop valuable policies for financial stability to enhance environmental innovation.
ISSN:0959-6526
1879-1786
DOI:10.1016/j.jclepro.2023.137896