From Migration to Cultivation: How Green Finance Reshapes Rural Income and Enhances Agricultural Resilience

Jinchen Yan^1*Jing Li^2*Yifang Liu³Kun Li⁴

• ¹Hangzhou Dianzi University, Hangzhou, China
• ²Hebei University of Economics and Business, Shijiazhuang, Hebei Province, China
• ³Central University of Finance and Economics, Beijing, Beijing Municipality, China
• ⁴University of Perpetual Help System Laguna, Biñan, Philippines

As China accelerates its transition toward green and sustainable development, green finance has emerged as a key policy instrument to reshape rural economic structures. However, its effects on household income composition and broader rural transformation remain insufficiently explored. This paper investigates how the establishment of Green Finance Reform and Innovation Zones (GFRIZ) influences the income structure of rural households, with particular attention to labor allocation, financial access, and implications for food security. Using panel data from the China Labor-force Dynamics Survey (CLDS) from 2010 to 2018 and a difference-in-differences (DID) strategy, we find that green finance reform significantly increases households' operating income while reducing their dependence on traditional agricultural income. It also discourages rural labor migration, encourages productive land use, and enhances access to financial services, including credit, insurance, and investment. These effects are more pronounced in Central and Western provinces, low-GDP regions, and digitally underdeveloped areas-suggesting that green finance plays a redistributive and inclusive role in rural development.Mechanism analyses further show that policy effectiveness is amplified by community-based learning activities, which foster knowledge spillovers and financial participation. Moreover, by retaining labor in rural areas and revitalizing agricultural engagement, green finance indirectly helps stabilize grain production capacity, offering long-term benefits for food security. Our findings underscore the multidimensional value of green finance as a lever not only for ecological transition but also for inclusive rural revitalization and agricultural resilience. To maximize impact, green finance should be integrated with human capital investment and environmental oversight mechanisms.