Research On The Influence Of Green Finance On Economic Development

In recent years,China’s economy has entered a new stage of development and began to change from extensive economic growth mode to high-quality economic development mode.As a new driving force of economic growth,green development,which aims to balance economic growth and environmental coordination,has also begun to receive attention.In this context,green finance came into being.The economic system of green and low-carbon circular development mentioned at the 19 th National Congress has just opened up a new road for China’s development at this stage.On the one hand,we should vigorously develop green finance,on the other hand,we should use green finance to promote green development.Therefore,this paper chooses to study the impact of Green Finance on green development,analyzes its mechanism,constructs a comprehensive index of green finance and green development by using the panel data of 30 provinces from 2007 to 2020,and empirically analyzes the impact of Green Finance on green development.Through the research,this paper finds that,first,green finance has a significant positive role in promoting the three subsystems of green development,green growth,green environment and green life.Moreover,the positive role of green finance in promoting the green growth and green life of green development is more obvious,while the role in promoting the green environment is relatively weak.Second,green finance has a significant positive role in promoting the overall level of green development,and at the regional level,there is regional heterogeneity in the impact of Green Finance on green development,which has a more obvious impact on the green development of the East and west regions,while the impact on the green development of the central region is less significant.In addition,through the division of green development level,it is found that green finance has the most significant impact on green development in the high-level stage and slightly weak impact on green development in the medium-level stage,but the impact of Green Finance on green development in the low-level stage is not significant.Based on these conclusions,China should vigorously develop and improve the green financial system,strengthen the support of green finance for green development,and implement green financial policies according to local conditions,so as to make green finance play a greater role in the process of economic development.