Research On The Impact Of Green Finance On The Development Of Low-carbon Economy

Over the past 40 years of reform and opening up,China’s economy has grown rapidly,but in the process,it has also caused serious environmental problems and hindered the process of sustainable development.In order to seek a win-win path for economic development and ecological protection,the country proposed the "dual carbon" goal in 2020.By reducing carbon emissions,advocating green and low-carbon production mode,promoting the green transformation and upgrading of industrial structure,and realizing low-carbon and green sustainable development of economy and society.In the process of realizing the development of low-carbon economy,the financial industry is indispensable to provide strong support for it.The development of green finance is in line with the development concept of a low-carbon economy,which can play an important role in industrial upgrading and economic restructuring,meet the investment needs of energy,environmental protection,and other industries.Using green finance can better promote the development of a low-carbon economy,and is also the key to achieving sustainable development.Therefore,this thesis based on China’s provincial panel data,using the systematic GMM model to explore the impact of green finance on the development of low-carbon economy.Firstly,this thesis expounds the connotation of green finance and low-carbon economy development and the impact of green finance on low-carbon economy development by combing relevant domestic and foreign documents.Secondly,it theoretically analyzes the impact mechanism of green finance on the development of low-carbon economy,and proposes research hypotheses.Thirdly,based on reading a large number of literature and theoretical analysis,analyze the current development situation of green finance and low-carbon economy;And construct an indicator system for the development of green finance and low-carbon economy,using entropy method to comprehensively evaluate the development of green finance and low-carbon economy.Next,construct a systematic GMM model,select panel data from 30 provinces(autonomous regions,municipalities directly under the Central Government)throughout the country from2010 to 2020,and use Stata16.0 data analysis software to empirically test the impact of green finance on the development of low-carbon economy.Finally,construct a mediation effect model,select industrial structure upgrading as the intermediary variable,and study the impact mechanism of green finance on the development of low-carbon economy;At the same time,a panel threshold model is constructed to analyze whether there is a threshold effect between formal and informal environmental regulations in the impact of green finance on the development of low-carbon economy.The empirical research shows that: first,the development level of green finance and low-carbon economy in China is on the rise as a whole.Second,green finance has a significant promoting effect on the development of low-carbon economy,and the development of green finance and low-carbon economy presents a dynamic development trend.With the improvement of the development level of green finance,it promotes the development of low-carbon economy.Third,the impact of green finance on the development of low-carbon economy has obvious heterogeneity.Compared with the results of sub-sample regression in the eastern and central regions,green finance in the eastern and central regions has significantly promoted the development of low-carbon economy,but the impact of the central and western regions is lower than that of the eastern regions.Compared with the regression results of resource endowment differences,the impact of green finance in resource-based areas on the development of low-carbon economy is not significant,while the impact of green finance in non-resource-based areas on the development of low-carbon economy has a significant promoting effect.Fourth,green finance can promote the development of low-carbon economy through the upgrading of industrial structure.Fifth,green finance has a significant threshold effect on the development of low-carbon economy.When the threshold variable is formal environmental regulation,there is a double threshold effect;When the threshold variable is informal environmental regulation,there is a single threshold effect.Finally,based on the results of the study,it puts forward countermeasures and suggestions to establish and improve the green financial system,promote the innovation of green financial instruments,implement the development strategy of regional differentiation,accelerate the promotion of industrial transformation and upgrading,and improve the auxiliary factors of environmental regulation.