The document discusses green total factor productivity (GTFP), which examines economic growth while considering inputs, outputs, and negative externalities like pollution. It presents hypotheses that green technological innovation, financial development, and green finance are significant positive predictors of GTFP in China. Green technology reduces environmental harm from innovation. Financial development and green finance can help minimize carbon emissions and promote more sustainable economic growth.
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literature.pptx
1. Green total factor productivity (GTFP)
GTFP is a modern productivity index that examines economic growth by
considering input, output, and undesired outputs, such as energy constraints,
carbon emissions, and environmental resources
GTFP can potentially reflect the efficiency of energy development and use
accurately. It also aids in determining the economic growth that is conditional
on the energy consumption scale or energy use efficiency enhancement
The world faces multiple environmental challenges, such as natural resource
degradation, climate change, global warming, pollution, etc. Almost every
country’s economic expansion has been accompanied by resource depletion,
environmental pollution, and ecological degradation
2. Green technology innovation and green
total factor productivity
Green technology adheres to the law of ecological economics and prioritizes
resource and energy conservation during innovation. It reduces pollution and
environmental destruction during innovation and ensures that technological
innovation has the least ecologically negative impact possible.
GTI fosters the development of manufacturing technologies and the creation
of new products, resulting in significant efficiency gains. From the standpoint
of the innovation system, improving GTFP through technological innovation is
to decrease outflow in energy consumption through system transformation
and then increase energy TFP overall.
Hypothesis
Green technological innovation is a significant positive predictor of green
total factor productivity.
3. Financial development and green total
factor productivity
The literature review indicates that financial development can help economic
progress by assembling investments, optimizing capital allocation, and
minimizing risk.
Financial infrastructure may boost economic growth and influence energy
demand. A higher level of financial development results in the growth of the
financial market, economic development and an increase in investment
capital.
A better financial system is a source for improving eco-friendly industrial
technology, which leads to enhanced energy infrastructure and a reduction in
CO2 emissions
Hypothesis
Financial development is a significant positive predictor of green total factor
productivity in China
4. Green finance and green total factor
productivity
The focus of GTFP is on input and output, in the current phenomenon, green
finance serves as an input aiming to promote environment-friendly practices
and revival of natural climate output by minimizing CO2 emissions
It is argued that green finance promotes energy efficiency by lowering
excessive energy consumption from the input side by minimizing reliance on
fossil fuels and excessive environmental harm from the output side.
Hypothesis
Green finance is a significant positive predictor of green total factor
productivity in China