Chapter 9 - Green growth contribution to carbon neutrality

Abstract

Green transformation of the economy is an effective way to cope with environmental pollution and save energy. We empirically discuss the effect of green transition on greenhouse gas emissions according to Chinese provincial panel data from 2004 to 2018. According to the uneven regional development of China's economy, this study also examines how green finance and regional heterogeneity affect green transition-CO2 emissions. Preliminary findings show that: (i) there is an initial development in China to reduce CO2 emissions, and green transition reduces CO2 emissions; (ii) green transition has different effects on CO2 emissions due to regional heterogeneity, with green transition increasing greenhouse gas emissions in the eastern region and green transition reducing greenhouse gas emissions in the central and western regions; and (iii) green finance plays a mediating role. That is, green transition in China directly reduces greenhouse gas emissions, while green finance exerts a mediating effect in decreasing greenhouse gas emissions.