Unlocking the solid waste suppression path from the perspective of zero waste cities: Exploring the inhibitory path of green credit on solid waste

Abstract

Solid waste management is key to achieving zero-waste cities, encompassing waste reduction, recycling and the circular use of resources. This not only alleviates environmental pressure but also serves as a crucial avenue for sustainable development and the protection of natural resources. With the ongoing advancement of zero-waste cities, reducing solid waste generations has become a focal point of interest for policymakers and the academic community alike. Previously, the majority of academic research concentrated on green finance and environmental pollution, with a particular focus on green credit at the micro-level, yet in-depth studies on solid waste management were scarce. To bridge this research gap, this article introduces spatial econometric models, mediating effect models and threshold models, concentrating on analysing the impact pathways of green credit on solid waste management. The study reveals: (1) green credit significantly suppresses solid waste generations in Chinese provinces, but this effect exhibits regional disparities; (2) green credit exhibits a threshold effect in mitigating solid waste generations, implying that an appropriate level of green credit and environmental governance investment enhances its inhibitory effect on solid waste and (3) research and development investment intensity and industrial structure upgrading serve as intermediary factors in the process of green credit inhibiting solid waste. These research conclusions can provide valuable references for local governments and businesses to enhance solid waste management.