Green finance, the low-carbon energy transition, and environmental pollution: evidence from China.

Abstract

With 2008-2020 China's provincial panel data as the research object, we use the entropy weight method to compute green finance and pollution, and we empirically study the scope of the spillover effects and threshold impacts of green finance on environmental pollution using the spatial Durbin model and threshold regression model. The findings are as follows: first, under different spatial weight matrices, green finance has a spatial spillover effect on pollution. And the effect boundary is approximately 500km. Second, with the low-carbon energy transition, technological progress, and green finance as threshold variables, there are a single threshold, single threshold, and double threshold, respectively, that have significant threshold effects. Third, the spillover and threshold effects of green finance on pollution differ by region. The indirect effect is negative in the eastern region and positive in the central and western regions. There is a single threshold effect of low-carbon energy transition and green finance in the western region, a single threshold effect of green finance in the central region, and a single threshold effect of technological progress in the eastern region. On this basis, we put forward. specific policy recommendations.