Effect of Green Finance on Industrial Carbon Emissions in China——Empirical Analysis Based on Provincial Panel Data

¹ China University of Mining and Technolog, School of Economics and Management, 221116 Xuzhou, China
² Zhongnan University of Economics and Law, Wenlan School of Business, 430073 Wuhan, China

^* Corresponding author: zhouyingying@cumt.edu.cn

Abstract

Based on the Environmental Kuznets Curve (EKC), this paper empirically analyzes the impact of green finance development on industrial carbon emissions in China by using the panel data of Chinese mainland province. It is found that the development of green finance has significantly suppressed the industrial carbon emissions in China. Heterogeneity test shows that the inhibition effect on carbon emission in central China is the most obvious, and the inhibition effect on carbon emission in eastern and western regions decreases in turn. Technological progress significantly inhibits carbon emissions, especially in central China, followed by the western region and finally the eastern region. It is suggested to improve the green and low-carbon financing system, support the optimization of energy consumption structure and guide substantive technological progress, so as to promote the realization of carbon emission reduction targets.