Exploring the role of green finance and natural resource policies in carbon emission efficiency of China's manufacturing industry in the context of post-COVID-19 period

Abstract

China's manufacturing industry accounts for a significant portion of its total carbon emissions. While the activities of manufacturing have been found to be inevitably influenced by the pandemic, how COVID-19 influences the utilization of manufacturing industry has rarely been discussed in previous studies. Understanding how COVID-19 has reshaped manufacturing activities may also be helpful for providing updated policy implications in the post-pandemic era. The objective of this research is to investigate the extent to which the impact of the built environment on the utilization of manufacturing industry has changed post pandemic, as compared to pre-pandemic period. This study empirically investigates the spatial effects of green finance on manufacturing industry's carbon emission efficiency (CEE) in China, as well as the role that natural resource policies play in this mechanism. Based on panel data from 30 provinces and municipalities in China during the period from 2013 to 2022, a Spatial Durbin Model applied to analyze the nexus between green finance, natural resource policies and CEE. Results show green finance significantly improves CEE and this effect is strengthened in the post-pandemic period. This research also verifies the synergy effect of green finance and natural resource policies on CEE of manufacturing industry in post-pandemic. The results of this study provide policymakers with a timely understanding of the changes in CEE during the pandemic, which can help redesign manufacturing industry in the post-pandemic era.