Research On The Impact Of Financial Development And Environmental Regulation On Green Total Factor Productivity

At present,China’s economy has entered the stage of high-quality development,and the key factor to ensure the sustainable development of this stage is to promote the improvement of green total factor productivity.To realize the green transformation of economy,we must get rid of the extensive development mode of "high material consumption,high energy and high pollution".Facing the "three high" problems in China’s economic development process,the government implements reasonable environmental regulation policies to promote the growth of green total factor productivity and achieve a win-win situation between economic benefits and environmental protection.Green,on the other hand,the growth of total factor productivity is mainly comes from the green technology innovation,and green technological innovation is a high investment,high risk,long return cycle process,complete financial market can play to reduce the risk and the function of resource allocation,green technology innovation for the enterprise to provide the necessary capital and market operation conditions.On the basis of combing relevant theories and literatures,this paper firstly analyzes the two single elements of financial development and environmental regulation and the mechanism of their combined effect on green total factor productivity.Secondly,the panel data of 30 provinces(municipalities directly under the Central Government)from 2006 to 2015 except Xizang were selected,and the financial development and green total factor productivity were measured by the comprehensive evaluation method.Finally,the panel model and threshold model are constructed to empirically analyze the impact of financial development and environmental regulation on green TFP.The research shows that :(1)from the perspective of panel model,the lag term of green total factor productivity is highly significant,indicating the sustainability of green total factor productivity.Financial development plays a significant role in promoting green productivity.Environmental regulation is significantly positive for the green TFP coefficient,while the quadratic term is significantly negative.There is an inverted "U" relationship between environmental regulation and green TFP.Financial development and the environmental regulation of two factor interactions on green total factor productivity growth has a significant role in promoting,and the effect is greater than the environment regulation single factor affecting green total factor productivity,this shows that affected by the level of financial development,environmental regulation to promote green total factor productivity "innovation effect" can be very good.(2)from the threshold model,under the different level of financial development stage,environmental regulation on green nonlinear effects to total factor productivity,the results show that there is a single financial threshold value,the low level of financial development,environmental regulation for green growth in total factor productivity,and across the threshold value,the mature financial market conditions,environmental regulation is beneficial to green growth in total factor productivity,present a "U" shaped relationship.Based on the empirical results,this paper mainly puts forward the policies of deepening the financial system reform,improving the environmental regulation system,considering the financial development,and implementing regional differentiated financial development and environmental regulation.