Analysis Of The Impact Of Green Investment On China's Environmental Quality

Since the 21th century,environmental problems have gradually become an important issue of Chinese economic society.Environmental problems such as water pollution,air pollution,industrial solid waste pollution and noise pollution have a negative impact on the development of economic society and the health of people's lives.Both of the 18th and 19th National Congress of the Communist Party of China have made great emphasis on the construction of ecological civilization.The construction of resource-saving and environment-friendly society has been put on the agenda,strengthening tHe management of the ecological environment and the harmonious coexistence between human being and nature.In order to improve environmental quality and to reduce emissions of environmental pollutants,it is necessary to strengthen the investment in environmental pollution control,especially industrial pollution control.This paper makes a theoretical and empirical analysis of the relationship between green investment and environmental quality represented by industrial pollution control investment,so as to make a suggestion on China's ecological civilization construction from the perspective of investment.This paper starts with summarizing the research results of predecessors.The literature review section mainly introduces the research on green finance by domestic and foreign scholars,as well as the correlation between three kinds of pollution,investment,economic development,urbanization development and openness.Secondly,this paper analyses how those factors influence the environmental quality,and puts forward corresponding policy recommendations at the end.Based on previous research,this paper uses the panel data of 30 provincial-level administrative regions in China from 1998 to 2017 to conduct empirical research,and estimates the correlation between green investment and environmental quality with Generalized Method of Moment(GMM)method.In consideration of the inertia of pollutant emissions(industrial waste water,waste gas and solid waste),the current emissions will be affected by the previous emissions.Therefore,the pollutant emission is taken as the explanatory variable and its lag term is included in the regression model as an effective tool variable to eliminate the endogeneity problem.Through system GMM estimation,this paper finds that there is a certain momentum in the discharge of pollutants.Three kinds of green investment(waste water investment,waste gas investment and solid waste investment)will reduce the emission level of pollutants to a certain extent and improve the environmental quality.In addition,the paper carries out grouping GMM estimation on 30 provincial-level administrative regions in China,dividing them into two regions,the South and the North.The result shows that the efficiency of green investment differs in regions.All GMM estimation models in this paper passes the disturbance term correlation test and the Sargan test.Furthermore,the article analyzes other factors affecting pollutant emissions.Pollutant emissions can be reduced by improving population quality,adjusting industrial structure,strengthening urban infrastructure construction,and regulating foreign direct investment,which will improve environmental quality.