Research On The Impact Of Green Finance On Economic Development

Since the reform and opening up,China's economic development has achieved great achievements that have attracted worldwide attention.However,China's economic growth achievements also have many problems.China's long-term implementation of the extensive growth mode has brought about rapid economic growth,but the environmental pollution is very serious in the long run,and the energy consumption is also huge,in addition to the excessive emissions of greenhouse gases such as carbon dioxide.Facing the increasingly severe resource consumption and environmental pollution,the development of green finance is the inevitable choice to promote the transformation of economic structure and promote sustainable economic development.Therefore,it is of great significance to study the impact of China's green finance on economic growth,industrial restructuring,energy conservation and emission reduction,and to explore the mechanism for developing green finance to promote green growth in China's economy.The main contents of this article are arranged as follows:The first part explores the impact of green finance on economic development.In this chapter,we incorporate green finance into the endogenous economic growth model.Then by solving the mathematical model and simulation,we analyze the economic growth effect,environmental protection effect and industrial structure optimization effect of green financial policy.The study found that we should guide resources from the “high pollution,high energy consumption and overcapacity industries” to “green,low carbon,environmentally friendly,efficient and clean” sectors through reasonable green financial policies.So that we can optimize the allocation of resources,improve the efficiency of resource use,and optimize and upgrade the industrial structure.In the end,China will achieve a multi-win situation of economic,environmental and industrial structure optimization.The second part explores the impact of green finance on economic growth.In this chapter,we apply the difference in difference model to empirically analyze the impact of green finance on economic growth.The results of empirical analysis show that:(1)Green financial policy does not advocate extensive growth,does not advocate the blind expansion of the scale of economic growth,and does not advocate blindly spreading the booth to engage in redundant construction.(2)Green finance will reduce the economic growth rate to a certain extent,which is very compatible with the concept of green financial development.Green finance focuses on the quality of economic growth,environmental protection resource conservation is prioritized,and the rate of economic growth can be appropriately slowed down.(3)Green finance contributes to the improvement of the quality of economic growth and is in line with the purpose of quality development of green finance.The third part studies the impact of green financial development on industrial structure optimization and upgrading.Based on the time series data of China from 2004 to 2017,this paper empirically studies the relationship between the green finance development and industrial structure optimization by using unit root,cointegration theory and impulse response model.Empirical analysis shows that there is a long-term stable relationship among green financial development,per capita GDP and industrial structure.In this long-term equilibrium relationship,the proportion of non-agricultural industries in China will increase by 0.2493 percentage points for every 1 percentage point increase in the balance of green credit.The estimation results of the error correction model show that the error correction coefficient is 0.0135,which indicates that the adjustment speed of the system from non-equilibrium state to long-term equilibrium state is very slow.Finally,the impulse response results show that if a unit standard deviation impact is given to green finance,the proportion of non-agricultural industries will rise sharply and reach a peak in the second phase,then the positive impact of the impact will decline slightly,and finally stabilize.The fourth part studies the energy saving effect of green finance.The paper based on the micro-data of Jiangxi enterprises,applies smooth transition model to investigate adjustment between green credit and energy saving.The results show that the linkage between green credit and energy saving is nonlinear and asymmetric.When the green credit below the threshold level,the impact of the green credit shocks on energy saving is relatively large;when green credit higher than the threshold level,the green credit changes on energy saving has little effect;the impact of the green credit shocks on energy saving is relatively less;when green credit near the threshold value the impact the green credit shocks on energy saving smooth transition between the two mechanisms.The fifth part studies the emission reduction effects of green finance.We first analyze the status of air pollution in China and the background of emission reduction.Then we analyze the theoretical basis and role of commercial banks in implementing green credit.Finally,based on the data of 19 enterprises in Jiangxi Province provided by the Jiangxi Banking Regulatory Commission,we established a panel data model to empirically study the impact of green credit on emission reduction of various enterprises.The empirical analysis shows that green credit has a significant impact on the reduction of carbon dioxide,ammonia nitrogen,sulfur dioxide and nitrogen oxide emissions.However,green credit has no significant impact on the reduction of chemical oxygen demand.The last part is the conclusion and outlook.In this part,we briefly introduce the research content and research conclusions of the paper,and propose countermeasures.On the other hand,we point out the shortcomings of the paper and the future research direction.