Abstract
The transformation of the traditional high-carbon economy to a low-carbon economy and the change in the economic development mode urgently require the transformation and development of traditional finance to green finance. This study examines the impact of green finance on the transition to a low-carbon economy in 30 Chinese provinces from 2001 to 2019 and further explores the role of low-carbon technological innovation in this facilitation process. We use the Global Malmquist- Luenberger index to measure low-carbon total factor productivity using gross regional product as the desired output, CO2 emissions as the undesired output, and capital stock, employment, and total energy consumption as input indicators to represent the low-carbon economic transition. We select seven indicators in four dimensions of green credit, green securities, green insurance, and green investment to construct a comprehensive green finance evaluation system, and then apply the entropy value method to calculate green finance indicators. The number of patents granted for low-carbon innovation is used to measure low-carbon technology innovation. Foreign direct investment, industrialization level, economic development level, and urbanization level are selected as control variables. Through panel data model, mediating effect model and 2SLS, we find that green finance can significantly contribute to the transformation of low-carbon economy, but this contribution decreases with the intervention of low-carbon technology innovation. The implications of our empirical results can help China to improve the development of green finance and thus promote the transformation and upgrading of a low-carbon economy.
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Data availability
Most of the data generated or analyzed in this study are included in this published article. The remaining datasets used for analysis are available in the China Statistical Yearbook, China Energy Statistical Yearbook, China Industrial Statistical Yearbook, China Environmental Statistical Yearbook, China Insurance Yearbook, CSMAR database [https://www.gtarsc.com/], wind database [https://www.wind.com. cn/NewSite/edb.html].
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This study is funded by the Performance Evaluation and Improvement Path of New Urbanization.
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Wenqi Li proposed the research topic and designed the research protocol. He was also responsible for the technical and material support of this thesis, provided and designed the research methodology, and served as the supervisor of this thesis. As the corresponding author, he ensured the accuracy of the content described in the paper. Jingjing Fan wrote this article based on the empirical results, and researched and organized the relevant literature, and reviewed the final paper. The paper was revised and translated. She was also responsible for the submission and revision of the thesis. Jiawei Zhao collected and organized the research data required for the thesis. Statistical analysis was conducted and the accuracy of the empirical analysis process was verified. All authors read and approved the final manuscript.
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Li, W., Fan, J. & Zhao, J. Has green finance facilitated China’s low-carbon economic transition?. Environ Sci Pollut Res 29, 57502–57515 (2022). https://doi.org/10.1007/s11356-022-19891-8
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DOI: https://doi.org/10.1007/s11356-022-19891-8