Green Finance for Green Land: Coupling Economic and Ecological Systems Through Financial Innovation

The coupled development of economic and ecological systems is crucial for achieving sustainable growth, with the financial system playing a pivotal adaptive role. Green financial innovation (GFI) is central to enhancing this adaptation. Urban land use eco-efficiency (ULUEE) serves as an effective me...

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Main Authors: Fengchen Wang, Huijia Chen, Chengming Li
Format: Article
Language:English
Published: MDPI AG 2025-07-01
Series:Systems
Subjects:
Online Access:https://www.mdpi.com/2079-8954/13/7/582
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author Fengchen Wang
Huijia Chen
Chengming Li
author_facet Fengchen Wang
Huijia Chen
Chengming Li
author_sort Fengchen Wang
collection DOAJ
description The coupled development of economic and ecological systems is crucial for achieving sustainable growth, with the financial system playing a pivotal adaptive role. Green financial innovation (GFI) is central to enhancing this adaptation. Urban land use eco-efficiency (ULUEE) serves as an effective measure of economic–ecological coupling. Using China’s Green Finance Reform and Innovation Pilot Zones (GFRPZs) as a quasi-natural experiment, this study assesses the impact of GFI on ULUEE, employing panel data from 283 prefecture-level cities (2013–2021). The results show that GFI significantly enhances ULUEE through technological spillovers, strengthened environmental regulation, industrial upgrading, and resource agglomeration. Heterogeneity analyses further reveal that GFI’s positive effects are more pronounced in economically developed regions, cities without legacy heavy-industry reliance, and those with deeper financial development. Additionally, GFI demonstrates cross-regional spillover effects, effectively interacting with other environmental policies. While GFI’s impact is more pronounced in economic growth, its ecological governance improvements are modest. This study provides critical insights for tailored green financial policies aimed at harmonizing economic and ecological objectives.
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spelling doaj-art-f4020b01a6bb4cfab183ddd99cb574a12025-08-20T03:56:45ZengMDPI AGSystems2079-89542025-07-0113758210.3390/systems13070582Green Finance for Green Land: Coupling Economic and Ecological Systems Through Financial InnovationFengchen Wang0Huijia Chen1Chengming Li2School of Economics, Minzu University of China, Beijing 100081, ChinaSchool of Economics, Minzu University of China, Beijing 100081, ChinaSchool of Economics, Minzu University of China, Beijing 100081, ChinaThe coupled development of economic and ecological systems is crucial for achieving sustainable growth, with the financial system playing a pivotal adaptive role. Green financial innovation (GFI) is central to enhancing this adaptation. Urban land use eco-efficiency (ULUEE) serves as an effective measure of economic–ecological coupling. Using China’s Green Finance Reform and Innovation Pilot Zones (GFRPZs) as a quasi-natural experiment, this study assesses the impact of GFI on ULUEE, employing panel data from 283 prefecture-level cities (2013–2021). The results show that GFI significantly enhances ULUEE through technological spillovers, strengthened environmental regulation, industrial upgrading, and resource agglomeration. Heterogeneity analyses further reveal that GFI’s positive effects are more pronounced in economically developed regions, cities without legacy heavy-industry reliance, and those with deeper financial development. Additionally, GFI demonstrates cross-regional spillover effects, effectively interacting with other environmental policies. While GFI’s impact is more pronounced in economic growth, its ecological governance improvements are modest. This study provides critical insights for tailored green financial policies aimed at harmonizing economic and ecological objectives.https://www.mdpi.com/2079-8954/13/7/582system couplinggreen financial innovationurban land use eco-efficiencypolicy evaluationsustainable development
spellingShingle Fengchen Wang
Huijia Chen
Chengming Li
Green Finance for Green Land: Coupling Economic and Ecological Systems Through Financial Innovation
Systems
system coupling
green financial innovation
urban land use eco-efficiency
policy evaluation
sustainable development
title Green Finance for Green Land: Coupling Economic and Ecological Systems Through Financial Innovation
title_full Green Finance for Green Land: Coupling Economic and Ecological Systems Through Financial Innovation
title_fullStr Green Finance for Green Land: Coupling Economic and Ecological Systems Through Financial Innovation
title_full_unstemmed Green Finance for Green Land: Coupling Economic and Ecological Systems Through Financial Innovation
title_short Green Finance for Green Land: Coupling Economic and Ecological Systems Through Financial Innovation
title_sort green finance for green land coupling economic and ecological systems through financial innovation
topic system coupling
green financial innovation
urban land use eco-efficiency
policy evaluation
sustainable development
url https://www.mdpi.com/2079-8954/13/7/582
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AT huijiachen greenfinanceforgreenlandcouplingeconomicandecologicalsystemsthroughfinancialinnovation
AT chengmingli greenfinanceforgreenlandcouplingeconomicandecologicalsystemsthroughfinancialinnovation