Abstract
Carbon neutrality has attracted widespread attention as a key strategy for mitigating environmental degradation, but there is little research on whether the development of green finance can contribute to the process of carbon neutrality. This paper proposes a hypothesis based on the relationship between green finance and carbon-neutral performance and empirically tests it using a spatial Durbin model and combining it with a threshold panel model utilizing Chinese provincial sample data from 2011 to 2021. The study found that (1) green finance development would promote carbon-neutral performance; (2) there are notable spatial characteristics of green finance and carbon neutrality performance, with local green finance impacts both local and neighboring carbon-neutral performance; and (3) green finance impacts carbon-neutral performance at a single threshold and different levels of green finance development affect carbon-neutral performance differently. In the eastern, central, and western regions, the contribution of green finance to carbon-neutral performance gradually decreases. Thus, Chinese authorities should strengthen the green sustainable financing system, promote regional green finance, and enhance the carbon-neutral performance of green finance.
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