Green credit’s impact on pollution and economic development: A study from Vietnam

Nguyen, Duc Huu; Nguyen, Huan Huu; Nguyen, Tam Ha Minh; Chen, Xihui Haviour

Abstract

Vietnam is actively pursuing sustainable economic development while transitioning to a greener economy, facing challenges in balancing economic growth with environmental sustainability. The evaluation of current sustainable development efforts and the identification of effective green financial tools are critical for Vietnam's progress. This study introduces the Sustainable Economic Development (SED) Index, a comprehensive measure of sustainable economic development quality across Vietnam's 63 provinces from 2015 to 2022. Using a range of analytical techniques, we explore the relationships between green credit, environmental pollution, and sustainable economic development during this period. Our findings indicate rapid growth in sustainable economic development until 2019, followed by a deceleration due to the COVID-19 pandemic and the Ukraine war. Green credit emerges as a pivotal factor in supporting sustainable economic growth, managing climate risks, and mitigating environmental pollution, particularly during times of uncertainty. Additionally, we observe spatial spillover effects, where the benefits of green credit and the challenges of environmental pollution transcend provincial boundaries. The study recommends promoting green credit policies, fostering regional cooperation, and enhancing local competitiveness, digital transformation, and social equality to advance Vietnam's journey toward sustainable economic development.

Citation

Nguyen, D. H., Nguyen, H. H., Nguyen, T. H. M., & Chen, X. H. (2025). Green credit’s impact on pollution and economic development: A study from Vietnam. Research in International Business and Finance, 73, Article 102570. https://doi.org/10.1016/j.ribaf.2024.102570

• Journal Article Type: Article
• Acceptance Date: Sep 6, 2024
• Online Publication Date: Sep 12, 2024
• Publication Date: 2025-01
• Deposit Date: Sep 27, 2024
• Journal: Research in International Business and Finance
• Print ISSN: 0275-5319
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 73
• Article Number: 102570
• DOI: https://doi.org/10.1016/j.ribaf.2024.102570
• Keywords: Green credit; Green finance; Sustainable economic development; Environmental pollution; Climate risk; Vietnam
• Public URL: https://keele-repository.worktribe.com/output/926142
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S0275531924003635?via%3Dihub
• Additional Information: This article is maintained by: Elsevier; Article Title: Green credit’s impact on pollution and economic development: A study from Vietnam; Journal Title: Research in International Business and Finance; CrossRef DOI link to publisher maintained version: https://doi.org/10.1016/j.ribaf.2024.102570; Content Type: article; Copyright: © 2024 The Author(s). Published by Elsevier B.V.