Exploring the Role of Green Finance in Promoting Rural Revitalization in China

Abstract

Green finance (GF), a vital catalyst for sustainable development, has a significant effect on China's rural rejuvenation. Using the issue of how green financing affects rural renewal, this paper adopts panel data from 31 Chinese provinces from 2010 to 2022 to systematically explore the actual effects and path mechanisms of GF policies. The regression analysis results demonstrate that GF significantly boosts rural revival, and the robustness test results further verify these conclusions. The regression results were significant in various robustness tests by propensity score matching method, clustering robustness standard error, and bootstrap self-service sampling method. Nonetheless, the study also points to challenges such as regional disparities in policy implementation, uneven allocation of resources, and inadequate applicability and risk management for environmentally friendly financial products. Thus, it is advised to encourage the creation of new green financial instruments, particularly those that are suited for rural regions, and to further maximize the regional adaptation of policy implementation.