Abstract
This paper investigates whether the effect of regional green finance (GF) on total factor carbon productivity (TFCP) differs by the level of environmental regulation intensity. Using data of 30 provinces in China from 2008 to 2020, we measure green finance based on the entropy weight method. Then, we employ the Super-slacks-based measure (SBM) model that incorporates undesirable outputs to calculate TFCP. Further, based on a dynamic panel threshold model, we empirically investigate the relationship between GF and TFCP. The main conclusions are as follows: (1) a nonlinear relationship exists between GF and TFCP in China. Moreover, we are the first to take market-based environmental regulation (MER) and command-and-control environmental regulation (CER) as threshold variables. With MER and CER as threshold variables, there was a double-threshold effect between both GF and TFCP. Hence, when GF has a negative impact on TFCP, the government should consider reasonably adjusting environmental regulations to reap the full benefits of GF in terms of TFCP growth. (2) The heterogeneity analysis states that the nonlinear effect of GF on TFCP in different regions is still significant under the thresholds of MER and CER. Therefore, the government should implement flexible environmental regulation policies to make GF promote TFCP according to region’s characteristics. This study provides a new perspective on the relationship between green finance and total factor carbon productivity.
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The datasets used and/or analyzed in this study are available from the corresponding author on reasonable request.
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The authors are very grateful to the editors and anonymous reviewers for their insightful comments that helped us sufficiently improve the quality of this paper.
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This work was financially supported by the following foundations: Hebei Provincial Department of Education Humanities and Social Science Research Major Project (ZD202004); Natural Science Foundation of Hebei Province (G2021202001); Hebei Province Innovation Capacity Enhancement Program Project Soft Science Research Special (225576190D); and Major Project of Hebei Social Science Foundation (HB19ZD03).
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Zibiao Li designed the study and revised the original manuscript. Siwei Wang proposed the conception of the study and wrote the manuscript. Xue Lu performed the numerical analysis. Xin Li and Han Li provided experimental data used in validating the model.
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Appendix
Appendix
Tables 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 and 11
Figures 1, 2, 3, 4, 5, 6, 7 and 8
Average green finance level in 30 Chinese provinces from 2008 to 2020
Green finance in 30 provinces in China in 2008
Green finance in 30 provinces in China in 2012
Green finance in 30 provinces in China in 2016
Green finance in 30 provinces in China in 2020
Total factor carbon productivity trends for 30 Chinese provinces
Truthfulness test of market-based environmental regulation thresholds
Truthfulness test of command-and-control environmental regulation thresholds
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Li, Z., Lu, X., Wang, S. et al. The threshold effect of environmental regulation in the nexus between green finance and total factor carbon productivity: evidence from a dynamic panel threshold model. Environ Sci Pollut Res 30, 42223–42245 (2023). https://doi.org/10.1007/s11356-023-25214-2
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DOI: https://doi.org/10.1007/s11356-023-25214-2