From migration to cultivation: how green finance reshapes rural income and enhances agricultural resilience

Introduction 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 specific effects on household income composition and broader rural transformation remain underexplored. Methods This study investigates the impact of the Green Finance Reform and Innovation Zones (GFRIZ) on the income structure of rural households. We employ a difference-in-differences (DID) strategy using panel data from the China Labor-force Dynamics Survey (CLDS) covering the period 2010 to 2018. Results The empirical results show that green finance reform significantly increases households’ operating income and reduces their dependence on traditional agricultural income. It also discourages rural labor out-migration, encourages productive land use, and improves access to financial services, including credit, insurance, and investment. The effects are more pronounced in Central and Western provinces, economically underdeveloped areas, and regions with lower levels of digitalization. Mechanism analyses indicate that community-based learning activities further enhance policy effectiveness by promoting knowledge spillovers and financial participation. Discussion These findings highlight the multidimensional value of green finance as a lever for ecological transition, inclusive rural revitalization, and agricultural resilience. By retaining labor in rural areas and revitalizing agricultural engagement, green finance indirectly contributes to stabilizing grain production and strengthening food security. To maximize its impact, green finance should be integrated with human capital investment and robust environmental oversight mechanisms.