How does green finance affect the sustainability of mineral resources? Evidence from developing countries

Mineral resources play an extremely crucial role in the economic progress of developing nations, and how facilitating the sustainability of mineral resources (SMR) is particularly significant. This study investigates the influence of green finance on SMR using the systematic generalized method of moments (SYS-GMM) based on panel data for 145 developing countries from 2006 to 2020. In addition, the study conducts heterogeneity and robustness tests and analyzes the mediation mechanism. The key insights are summarized as follows: (1) Green finance can markedly promote SMR. (2) Green finance has the most conspicuous improvement on SMR in the Asia-Pacific region. (3) Green finance indirectly enhances SMR via technological progress and infrastructure construction. Finally, this article offers relevant policy suggestions and provides a practical and effective reference for enhancing the sustainability of mineral resources in developing countries. •This investigation focuses on how green finance affects sustainability of mineral resources (SMR).•Green finance has an important capability in advancing SMR.•Green finance can indirectly promote SMR by increasing technological progress and infrastructure construction.•The impact of green finance on SMR is regionally heterogeneous.