The Mechanism Of Financial Facors Promote Low-Carbon Economic Growth

At present, global warming which is caused by the greenhouse gas emissions is causing a lot of attentions from international community. Since three decades of Reform and Opening up, China has achieved a rapid economic development accompanying mass consumption of fossil energy including coal, oil, natural gas. CO2 emissions from the consumption of fossil energy has been increasing rapidly. It is the 'higher-carbon economy'characteristics that the economic growth in China has reflected obviously. It is growing contradiction between the rapid economic growth in China and climate. In the context of global warming, the idea of low-carbon economy was proposed firstly by Britain and the philosophy of low-carbon economy has caused the more and more attentions by over the world.The low-carbon economy has become an economic development trend in the world, and it is the core of low-carbon economy that how to achieve economic growth in this new model of low-carbon economy. This paper aims to analyze the mechanism which is how to use financial factors to promote low-carbon economic growth, and to make a few suggestions for China.Firstly, this paper analyzes the low-carbon economic growth through introduction of non-renewable energy to the endogenous growth model, in order to reveal in the constraints of non-renewable energy consumption how to achieve low-carbon economic growth. Secondly, from the perspective of macro and micro, this paper points to the financial mechanism promotes economic growth trough PAGANO model and the theory of financial function. Finally, this paper explains that financial factors promote the mechanisms of low-carbon economic growth through the method of logic and inductive analysis. Based on the above analysis, this paper has done two empirical tests between energy consumption and economic growth in China, plus between energy consumption and financial factors in China-which prove that China can promote low-carbon economic growth through the use of financial factors.According above findings, the following politics and suggestions:Firstly, improve the green-credit politics. The green-credit politics should be extended to individual consumer which could guide consumers to purchase low-carbon products, and promote low-carbon technology innovation, and promote low-carbon economic growth.Secondly, improve the mechanisms of carbon-trading market. The mechanisms of carbon-trading market in China should be established and improved which could encourage manufacturers to use low-carbon technology, and promote low-carbon technology innovation, and promote low-carbon economic growth.Thirdly, develop the carbon funds, which could strengthen the support for enterprises of research and development of low-carbon technology, and promote low-carbon technology innovation, and promote low-carbon economic growth.