OLS-Based Research on the Impact of Green Finance on Green Development——Taking Beijing as an Example

Abstract

The Green Credit Policy (GCP) and the Green Finance have brought tremendous influence to the promotion of industry. Green development is an approach to economic growth that considers both economic benefits and environmental protection, but because it requires significant investment to build a green industry, the recovery process is time-consuming and fraught with risk, so there is insufficient incentive for urban green development. Through specialized financing services for environmental protection firms and high-polluting companies, green finance may support the green transformation of high-polluting enterprises. This paper uses OLS estimation to evaluate the Green Development effect of GCP. Green development is significantly impacted by GCP. And Green Financial Level(gfl)’s index has a strong positive covariance with Green Development Level(gdl). Based on these results, we suggest that: The Chinese Government should promote GCP and make further efforts to perfect our industrial structure. Nations, including China, are actively promoting green finance to foster sustainable economic growth and protect the environment. China's efforts in developing green finance are crucial for realizing its ecological civilization. Green finance is a key aspect of promoting sustainable development. It is hoped that the Chinese government will offer stronger support in this field by establishing effective systems and regulations. Encouraging more financial institutions to participate in green finance will ultimately lead to sustainable economic and environmental progress.