Research On The Impact Of Green Finance On Regional Carbon Emission Intensity In Five Provinces Of Northwest China

With the increasing severity of global climate change and environmental issues,governments around the world are committed to reducing greenhouse gas emissions,especially CO2 emissions.In China,the economy is gradually moving towards high-quality development,making it urgent to achieve a new pattern of green,low-carbon,and sustainable development to promote the conversion of old and new growth drivers.At the 2009 Copenhagen Climate Conference,Former Premier Wen Jiabao pledged to reduce China’s unit GDP CO2 emissions by 40%—45% by 2020 compared to 2005.At the 2015 Paris Climate Conference,President Xi Jinping again pledged to reduce China’s CO2 emissions intensity by 60% — 65% compared to 2005 by 2030.In September 2020,President Xi Jinping announced the "3060" goal at the 75 th UN General Assembly,committing to reaching peak carbon emissions by 2030 and achieving carbon neutrality by2060.Achieving the "dual carbon" goals imposes higher requirements on China’s carbon emissions reduction,which needs policies,funding,and technology support.To fundamentally improve the impact of carbon emissions on the environment,it is necessary to firmly develop a green economy,and green finance is considered an important means to achieve a green economy.Based on this,this article first summarizes the existing literature on green finance and carbon emissions,identifying the shortcomings and possible innovative approaches;and then it defines the concepts of green finance and carbon emissions and expounds the related theories of sustainable development,low-carbon economy,externalities,and environmental Kuznets curve regarding the impact of green finance on carbon emissions.On that basis,the article analyzes the current status of green finance development and carbon emissions in China and calculates the green finance and carbon emissions intensity measured in this study.Finally,based on the provincial panel data of the five northwestern provinces of China from 2005 to 2019 and from the market-driven and government-led perspectives,the article analyzes the effect of green finance on carbon emissions intensity in the region.The research results show that in China’s relatively underdeveloped financial market in the five northwestern provinces,although green credit,green securities,and green investment can individually reduce regional carbon emissions intensity,the carbon reduction effect of green investment is stronger than that of green credit and green securities.In the northwestern provinces where green projects are relatively scarce,there is an obvious "crowding-out effect" between green credit and green securities.In contrast,due to the complementary effect of the "invisible hand of the market" and the "visible hand of the government," there is an obvious "crowding-in effect" between green investment and green credit or green securities.Based on the research conclusions and the current situation of the northwestern regions of China,this article proposes the following policy recommendations: establish a policy framework for the development of green finance and improve the legal and regulatory system;increase investment in green credit to boost the activity of financial markets;vigorously develop green investments and introduce diversified investment entities;actively promote the development of new energy and strengthen the role of natural resources.