The impact of green finance on sustainable development: an investigation into national ESG performance
Environmental, social, and governance (ESG) practice is essential to the achievement of sustainable development goals. Improving macro ESG performance requires lots of financial resource input, while whether green finance exhibits critical effect on national ESG performance has yet to be explored. T...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Journal of Applied Economics |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/15140326.2025.2528672 |
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| author | Mingbo Zheng Limin Wu Gen-Fu Feng Chun-Ping Chang |
| author_facet | Mingbo Zheng Limin Wu Gen-Fu Feng Chun-Ping Chang |
| author_sort | Mingbo Zheng |
| collection | DOAJ |
| description | Environmental, social, and governance (ESG) practice is essential to the achievement of sustainable development goals. Improving macro ESG performance requires lots of financial resource input, while whether green finance exhibits critical effect on national ESG performance has yet to be explored. This study employs a panel fixed effects model and panel data from 103 countries over the period from 2000 to 2020 to explore the role of green finance in national ESG performance. The findings show that green finance is conducive to enhanced national ESG performance. The heterogeneity test reveals those nations with higher levels of financial development, better institutional quality, and faster ICT development experience higher growth of national ESG performance from green finance. Specifically, green finance contributes to the development of green technology, and hence leads to improvement on ESG performance, while the evidence cannot support the mechanism of upgrading industrial structure. The research offers valuable policy reference for governments across different nations seeking to accelerate sustainable development. |
| format | Article |
| id | doaj-art-56c0509dfc3a4ae99cc4cbbf7c33dba0 |
| institution | Matheson Library |
| issn | 1514-0326 1667-6726 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Journal of Applied Economics |
| spelling | doaj-art-56c0509dfc3a4ae99cc4cbbf7c33dba02025-07-09T10:43:19ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262025-12-0128110.1080/15140326.2025.2528672The impact of green finance on sustainable development: an investigation into national ESG performanceMingbo Zheng0Limin Wu1Gen-Fu Feng2Chun-Ping Chang3School of Economics and Management, Chang’an University, Xi’an, Shaanxi, ChinaSchool of Economics and Management, Chang’an University, Xi’an, Shaanxi, ChinaSchool of Economics and Finance, Xi’an Jiaotong University, Xi’an, Shaanxi, ChinaDepartment of Marketing Management, Shih Chien University, Kaohsiung, TaiwanEnvironmental, social, and governance (ESG) practice is essential to the achievement of sustainable development goals. Improving macro ESG performance requires lots of financial resource input, while whether green finance exhibits critical effect on national ESG performance has yet to be explored. This study employs a panel fixed effects model and panel data from 103 countries over the period from 2000 to 2020 to explore the role of green finance in national ESG performance. The findings show that green finance is conducive to enhanced national ESG performance. The heterogeneity test reveals those nations with higher levels of financial development, better institutional quality, and faster ICT development experience higher growth of national ESG performance from green finance. Specifically, green finance contributes to the development of green technology, and hence leads to improvement on ESG performance, while the evidence cannot support the mechanism of upgrading industrial structure. The research offers valuable policy reference for governments across different nations seeking to accelerate sustainable development.https://www.tandfonline.com/doi/10.1080/15140326.2025.2528672Green financesustainable developmentnational ESG performancegreen innovation |
| spellingShingle | Mingbo Zheng Limin Wu Gen-Fu Feng Chun-Ping Chang The impact of green finance on sustainable development: an investigation into national ESG performance Journal of Applied Economics Green finance sustainable development national ESG performance green innovation |
| title | The impact of green finance on sustainable development: an investigation into national ESG performance |
| title_full | The impact of green finance on sustainable development: an investigation into national ESG performance |
| title_fullStr | The impact of green finance on sustainable development: an investigation into national ESG performance |
| title_full_unstemmed | The impact of green finance on sustainable development: an investigation into national ESG performance |
| title_short | The impact of green finance on sustainable development: an investigation into national ESG performance |
| title_sort | impact of green finance on sustainable development an investigation into national esg performance |
| topic | Green finance sustainable development national ESG performance green innovation |
| url | https://www.tandfonline.com/doi/10.1080/15140326.2025.2528672 |
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