TITLE:

GREEN TECHNOLOGICAL INNOVATION,GREEN FINANCE AND

FINANCIAL DEVELOPMENT AND THEIR ROLE IN GREEN
TOTAL FACTOR PRODUCTIVITY
INTRODUCTION

PROBLEM STATEMENT:

Do green finance, financial development and green

technological innovation are eco-friendly practices to
contribute in green total factor productivity?
INTRODUCTION OF THE TOPIC:

Considering the environmental deterioration challenges and a sharp decline in quality and
quantity of natural resources, the need for capitalizing in renewable energy resources and
environment friendly practices has increased a lot. In this case, several nations like China
have begun shifting from economic growth to green productivity practices such as green
finance, green innovation etc., which signifies collaboration between the economy,
resources and the ecological development to achieve sustainable development goals.

This has raised awareness of green financing and green technological innovation. Both are
the practices of environmental conservation and contributes in green total factor
productivity.
 To achieve green total factor productivity, China finds
that it is necessary to reform the way of development
and update and change the industrial system.
 It is generally accepted that enhancing GTFP, which was
created by incorporating energy use and pollution
into traditional total factor productivity to take into
account the economy activity's effects on resources and
the environment is a successful means of transitioning
the Chinese economy from rapid expansion to green
development
DEFINITION OF VARIABLES:

 GREEN TOTAL FACTOR PRODUCTIVITY:

 Dependent variable.
 Green total productivity refers to the total factor productivity estimated by taking pollutant
emissions as unpaid inputs and introducing them into the production function together with
capital, labor, and energy inputs.

 GREEN FINANCE:
 Independent variable.
 Green financing is to increase level of financial flows (from banking, micro-credit, insurance and
investment) from the public, private and not-for-profit sectors to sustainable development
priorities.
 Simply put, green finance is a loan or investment that promotes environmentally-positive
activities, such as the purchase of ecologically-friendly goods and services or the construction of
green infrastructure.
 FINANCIAL DEVELOPMENT:
 Independent variable
 Financial development means some improvements in producing information
about possible investments and allocating capital, monitoring firms and
exerting corporate governance, trading, diversification, and management of
risk, mobilization and pooling of savings, easing the exchange of goods and
services.

 GREEN TECHNOLOGICAL INNOVATION:

 Independent variable
 Green technology or environmental technology means using science and
technology to protect the world's natural resources and mitigate the negative
environmental impact of human activity.
RESEARCH QUESTIONS:
 How green innovation can be used to advance industrial growth
that is environment friendly?
 How advanced green economic growth contributes in green total
factor productivity?
 How industrial factors and economic development patterns
affects green productivity?
 How green finance promotes economic growth and protect the
environment?
RESEARCH OBJECTIVES:
 Green finance promotes economic growth by eco-friendly
activities.
 Reduction in carbon emissions from industrial activities to
protect environment
 Conserves energy and lowers polluting emissions have
significant impact in raising GTFP
 Green technology innovation is significant factor in development
of low carbon economy