The Impact Of Financial Development On Carbon Emissions

Since the reform and opening up,China has made remarkable achievements in many aspects,especially in the field of economy and finance.However,this extensive economic development sacrifices the environment.According to IEA(2009)statistics,China’s carbon emissions has surpassed the United States in 2007,becoming the world’s largest carbon emission country,while in terms of per capita carbon emissions,China is far lower than the United States,Australia and other developed countries.With the continuous release of a large number of carbon dioxide,it has a huge impact on the entire ecological environment and human society,and has become a global focus of hot issues.As a responsible big country,China immediately noticed the importance of energy conservation and emission reduction,and it is urgent to implement carbon emission reduction measures.The "14th five year plan" points out that China should strive to achieve the peak of carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060.In view of this,China has put forward a stronger carbon emission reduction target.We can constantly promote the economic and social transformation to a low-carbon direction by controlling coal consumption,supporting the development of renewable energy.It cannot leave the support of finance.As the core power to promote the economy forward,finance plays an important role in the adjustment of industrial structure and the development of technology,and it is the necessary guarantee for the realization of green and low-carbon economic development.However,financial development may also worsen the environment and increase carbon emissions.For example,the development of finance will make it easier for enterprises to raise funds and expand reproduction,which will increase energy consumption and emit more carbon dioxide.Finance is a double-edged sword here.In order to give full play to the effect of financial carbon emission reduction and reduce carbon emissions,it is necessary to understand the relationship between financial development and carbon emissions.Based on this,this paper first combs the relevant literature on financial development and carbon emissions,then analyzes relevant theories,and briefly describes the status quo of financial development and carbon emissions.Finally,on the basis of the above analysis,this paper selects the data of 30 provinces in China from 2005 to 2019 as samples,and empirically analyzes the effect of financial development on carbon emissions by establishing a spatial panel model.In addition,considering the differences of financial development and carbon emissions in different regions,this paper divides China into three regions based on the perspective of regional heterogeneity,and further explores whether regional heterogeneity will affect the research results.The empirical results show that China’s overall financial development will promote the generation of carbon emissions.For the eastern and central regions,the development of financial scale will increase carbon emissions,while the development of financial efficiency will reduce carbon emissions.For the western region,the development of financial scale and financial efficiency will positively stimulate carbon emissions.According to the conclusion of the study,this paper also puts forward a series of practical policy suggestions,such as deepening financial reform,optimizing local financial policies,strengthening regional cooperation in carbon emission governance,promoting the development of green finance and so on,aiming to achieve the reduction of carbon emissions and promote the transformation and development of green low-carbon economy.