An Empirical Study On The Suppression Of Carbon Emissions By Financial Development In China

In a speech at UN headquarters in Geneva,General Secretary Xi Jinping suggested that green and low carbon should be maintained and a clean and beautiful world should be built.China has the largest carbon dioxide emissions in the world.Excessive carbon emissions not only destroy the ecological environment,but also greatly restrict the sustainable and healthy development of the economy.How to curb carbon emissions has become the focus of attention and research in the economic and financial fields.In theory,financial development can restrain carbon emissions by supporting low-carbon technology development and industrial structure optimization,but this is not the case in China,which is the significance of this paper.This paper defines financial development as a dynamic process of the expansion of the relative scale of financial assets and the rise of the proportion of financial assets to GDP on the basis of combing the previous literature on the impact of financial development on carbon emissions.The paper mainly focuses on the financial scale and financial efficiency.Based on this,the paper selects the financial correlation ratio and the financial system efficiency as the indicators to measure the financial development,and combines the technical progress of per capita GDP,in China from 1990 to 2017.The data of industrial structure and foreign direct investment are analyzed by VAR model,and the ways of restraining carbon emissions by financial development are investigated in many aspects,and the inhibition of financial development is put forward.Problems arising in the process of carbon production and emissions.The empirical results show that there is correlation between financial development and carbon emissions,per capita carbon emissions and carbon emission intensity.Although the financial development has restrained carbon emissions to some extent,but the influence degree is relatively small;Financial development not only did not restrain the per capita carbon emissions,but also led to the increase of per capita carbon emissions.In the late stage,although the per capita carbon emissions were restrained,the effect was not obvious.For the intensity of carbon emission,the early stage of financial development is weak,but the later stage leads to the increase of carbon emission intensity.In addition,as per capita GDP continues to grow,carbon emissions and per capita carbon emissions increase first and then decrease,in line with the environmental treasury Nets curve theory,the intensity of carbon emissions,per capita GDP has a sustained negative impact on it;Technological progress and industrial structure did not inhibit carbon emissions.Foreign direct investment(FDI)inhibited carbon emission intensity,but did not inhibit carbon emissions,but led to the increase of carbon emissions.Based on the above research,the paper puts forward the following countermeasures and suggestions:focus on the development of carbon finance and green finance,accelerate the innovation of financial products,promote the research and development and application of low-carbon technology through financial capital support and risk management,financial restraint mechanism;We will optimize the energy structure and industrial distribution,and accelerate the transformation and upgrading of the industrial structure.