Can green finance exorcize the resource curse in China's resource-based cities? A geographically and temporally weighted regression (GTWR) analysis

Resource-dependent regions often face the challenge of the resource curse, which hinders sustainable development. This study investigates how green finance can address this issue, using panel data from 115 resource-based cities in China and employing a two-way fixed effects model and a Geographically and Temporally Weighted Regression (GTWR) model. The findings reveal that: First, resource-based cities in China exhibit the resource curse, characterized by significant spatiotemporal non-stationarity. Second, green finance demonstrates a nonlinear, inverted U-shaped effect on the resource curse, initially exacerbating it due to short-term disruptions but alleviating it over time by promoting industrial transformation. Third, mechanism tests show that green finance mitigates the resource curse by fostering green technology innovation. Based on these findings, this study recommends that resource-based cities adopt region-specific green finance strategies, strengthen financial infrastructure, promote green technology innovation, and implement transitional support measures to ensure a sustainable transition away from resource dependency.