Abstract
During the “14th Five-Year Plan” period, a question worth exploring in depth would be how China promotes green development through green finance to realize the goal of financially supporting the construction of ecological civilization. This paper builds a super-efficiency SBM window model to evaluate the comparable eco-efficiency of 30 provincial administrative regions in Mainland China (except Tibet) as a measurement of green development, and constructs an evaluation system for the green finance index, as a measurement of regional green finance development levels in China from 2007 to 2019. This paper also constructs spatial econometric models to study the effects of green finance on green development, and the influence of green finance on green development through supporting green technological innovation. Moreover, this paper analyzes the mechanisms of the spatial spillover effects and the heterogeneity in eastern, central, and western regions of China. The results of the study show that green finance only has a positive effect on green development in eastern regions, while in central and western regions, it fails to effectively support green development. The positive effect of green finance on green development by supporting green technological innovation is only in eastern regions, but it is not significant in the central region, while negative effect in the western region. Finally, according to the research conclusions, it is proposed to implement differentiated policies of green finance and the integration policies of green finance and green technological innovation policies in different regions of China.
Highlights
The time of writing, 2021, is the first year to implement the “14th Five-Year Plan”.The question of how China is to achieve sustainable development and accelerate the promotion of green and low-carbon development, leading to a construction of an ecological civilization, has attracted much attention around the world
Based on the above analysis, we propose the following hypotheses: Hypothesis 1 (H1): Green finance can promote regional green development, but for regions mainly relying on the development of high-energy-consuming and high-polluting industries, green finance may have a negative effect on local green development
Comparing the distribution of eco-efficiency and green finance, it can be seen that regions with higher levels of eco-efficiency are at higher green finance level, such as Beijing, Shanghai, Jiangsu, Zhejiang, and Guangdong
Summary
The time of writing, 2021, is the first year to implement the “14th Five-Year Plan”.The question of how China is to achieve sustainable development and accelerate the promotion of green and low-carbon development, leading to a construction of an ecological civilization, has attracted much attention around the world. Plenary Session of the Nineteenth Central Committee of the Communist Party of China, which proposes to strengthen the national scientific and technological power and promote green and low-carbon development to build a modernized and harmonious coexistence between human beings and nature. Sustainability 2022, 14, 2825 emission peak and carbon neutrality proposed by Jinping Xi, General Secretary of the Communist Party of China, it is important to discuss how to promote green and low-carbon development through green finance in order to realize the goal of financial support for the construction of ecological civilization and sustainable development with the realization of the people’s yearning for a better life. Research from a micro perspective believe that green finance has an important impact on market entities such as financial institutions and enterprises. Jeucken [2] believed that green finance is an objective requirement for financial institutions to achieve their own sustainable development. Wang et al [11] believed that green finance can optimize the industrial structure by restricting the financing of energy-intensive industries and expanding the financing of technology-intensive industries
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