Abstract
In this study, taking the pilot zones for green finance reform and innovations set up in 2017 as the objects, a quasi-natural experiment is conducted to assess the environmental effects of green finance policy using the difference-in-difference propensity score matching (PSM-DID) method based on the panel data in 30 provincial-level administrative regions from 2011 to 2019. In addition, further efforts are made to investigate the differences of green financial policies in environmental effect. According to the research findings, the set-up of green finance pilot zones can reduce the environmental pollution, and green finance policy is conductive to environmental enhancement. Meanwhile, a partial mediating effect exists between a region’s innovation capability and industrial structure. On the whole, green finance policy plays the most significant role in improving the eastern region’s environmental pollution, followed by the central region, but barely enhances the environment in the western region. To sum up, the more serious the environmental pollution is, the better the effect of green finance policy.
Highlights
China’s environmental pressure has been multiplied by its rapid growth development model
By enabling Experiment Group and Control Group to demonstrate their differences based on the fact of whether it is in the green finance pilot zone, the Control Group after matching can simulate the environmental effect of Experiment Group not included in the green finance pilot zone
China’s green finance system possesses especially noticeable top-level design characteristics, and some achievements were attained by virtue of the top-down development mode in the last few years
Summary
China’s environmental pressure has been multiplied by its rapid growth development model. The imbalance between resources environment and economic development has provoked an urgent need for green transformation of the Chinese economy. Compared with the UK, the USA, Germany, France and other developed countries in Europe and America where green finance mainly relies on the market development, China has realized its green finance development prominently characterized by top-level design. This means that the Chinese government serves as the designer and constructor of green finance system while burdening the critical mission of establishing and polishing the market mechanism and providing a favorable market environment for green finance development [1]. Considering current under-supply of green finance, lack of incentive mechanism, endogenetic deficiency and incomplete supporting facilities, the government is required to continuously strengthen the combined action of diversified policy systems involving green industrial policy, low-carbon and consumptionreduction policy and green finance policy, as a way to make existing green finance more effective [2]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
