Affiliation:
1. School of Economics, Hangzhou Normal University, Hangzhou 311121, China
2. Department of Management Sciences, Shaheed Benazir Bhutto University, Sheringal 18200, Pakistan
3. Hangzhou Economist Association, Hangzhou 311121, China
Abstract
Development that is eco-friendly, coordinated, sustainable, and of the highest caliber is crucial to China’s modernization. Based on the Cobb–Douglas production function and environmental Kuznets curve analysis, this paper investigates the link between green finance and the reduction of carbon emissions and high-quality economic development, then puts forward the hypothesis that green finance promotes high-quality economic development, and carbon emission reduction effect is its important transmission mechanism. This paper applies the bidirectional fixed effect model to a panel dataset of 30 Chinese provinces, cities, and autonomous regions from 2008 to 2019 to conduct an empirical test. The empirical results show that: (1) Green finance has a significant role in promoting high-quality economic development, which has passed the robustness test and has regional heterogeneity. (2) The growth of green financing reduces carbon emissions, which encourages high-quality development. (3) A positive spatial spillover effect results from the promotion of green finance to high-quality economic development. Given the aforementioned findings, this paper makes policy recommendations regarding how green financing, carbon emission reduction, and high-quality economic development might work together to support green development.
Funder
The “14th Five-Year Plan” Teaching Reform Project for Undergraduate Universities in Zhejiang Province of China
2022 Hangzhou Normal University Graduate Research Innovation Promotion Project
Subject
Management, Monitoring, Policy and Law,Renewable Energy, Sustainability and the Environment,Geography, Planning and Development,Building and Construction
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