Abstract
Dealing with the relationship between environment and economic development is the core issue of China’s sustainable development. At present, China’s economic transformation is urgent, and green finance is being widely concerned. This paper measured the development level of China’s green finance from the perspective of green credit, green securities, green investment, and green insurance. Then, it used a spatial dynamic panel model to empirically test the mechanism of the impact of green finance on carbon emissions with panel data of 30 Chinese provinces from 2005 to 2018. The following can be seen from the results: (1) The development of green finance contributes to carbon emission reduction. (2) The spatial spillover effect of green finance is significant. Specifically, the development of green finance can not only reduce the carbon emissions of the local region but also inhibit that of adjacent areas. (3) The development of green finance indirectly leads to a decrease in carbon emissions by reducing financing constraints and boosting green technology innovation. In order to stimulate the carbon emission reduction effect of green finance to a greater extent, we should further support the development of green finance, reduce the financing constraints of energy-saving and environmental-protection enterprises, and encourage the research and development of green innovative technologies.
Highlights
Since the industrial revolution, the economies of all countries in the world have grown rapidly [1]
From the core explanatory variables (Gfin), −0.9857 is the value of the elasticity coefficient of green finance to carbon emission, which is significantly negative at a 1% level
According to Lesage (2009) [58], the total effect represents the impact of green financial development on the carbon emissions of all provinces; the direct effect refers to the impact that the green financial development that the local region receives has on carbon emissions; and the indirect effect is equivalent to the mean of the impact that green financial development has on the carbon emissions of the surrounding regions
Summary
The economies of all countries in the world have grown rapidly [1]. The developed countries earlier in industrialization actively carried out financial innovation to reduce environmental pollution [2]. Europe, and other developed countries, China has had a difficult time reaching its peak of carbon emissions and achieving its goal of carbon neutrality It requires a systematic change involving the R&D of green technologies, the transformation of industries, and a low-carbon lifestyle [11]. While promoting the return on investment of green projects and improving the availability of financing, can the diversified green financial policies of Chinese government inhibit the investment in polluting projects and reduce carbon emissions?. The results obtained are helpful for more accurate understanding of the implementation effects of China’s green finance policies It provided theoretical guidance and policy recommendations for China to realize a low-carbon-recycling economy
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