Bridging the green and gold divide: exploring the impact of green finance policy and digital finance on ecological product value realization

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Authors: Hongjie Huang, Ruibo Zhou, Jianwei Cheng
Cited by: 1
References: 93

Abstract

Introduction Reconciling the conflict between economic growth and ecological conservation is a central challenge for global sustainable development. Innovative financial systems offer a transformative pathway to overcome this dilemma by translating ecosystem services into tangible economic outcomes. This study investigates the impacts of China’s Green Finance Reform and Innovation Pilot Zones (GFPZ) policy and digital finance on ecological product value realization (EPVR). Methods By constructing a multidimensional indicator based on the gross ecosystem product (GEP) framework, we develop an original EPVR dataset for China from 2011 to 2021. Employing a difference-in-differences (DID) approach, we evaluate the policy effects of the GFPZ and the role of digital finance. Results The results demonstrate that the GFPZ policy significantly improves EPVR by 6.4% compared to non-pilot regions. Mechanism analyses reveal that this policy effect is primarily driven by facilitating industrial green transformation and boosting the development of ecological industries. Furthermore, the direct impact of digital finance on EPVR is contingent upon regional structural thresholds, exerting a significant positive effect in areas with abundant natural resources, deep digital-real economy integration, and strict environmental regulations. Nevertheless, digital finance can significantly amplify the positive impact of the GFPZ policy. Discussion These findings underscore the critical synergy between financial policies and natural resources management, providing replicable insights for advancing financial systems to achieve harmonized human-nature coexistence and sustainable development.

Fields of Study & Subjects

Energy Environment Economic Growth Land Use and Ecosystem Services Sustainable Finance and Green Bonds

Publication details

Journal / source
Frontiers in Environmental Science
Publisher
Frontiers Media SA
Volume
14
Publication date
13 April 2026
Language
EN