Effect Of Financial Development On China’s Carbon Emissions

Since the reform and opening up China’s economy showed a rapid growth trend, while carbon dioxide and other greenhouse gas emissions at an alarming rate soared. As the world’s carbon emissions superpower, China has made in 2020 to reduce carbon intensity by 40%-45% target. The key to achieve this goal is by adjusting the economic structure and technological progress, to achieve the transition to a low-carbon economy from high-carbon. However, low-carbon economies in transition is inseparable financial support.This article summarizes the research on the impact of financial development on economic growth, industrial structure and technological progress, Analysis of the mechanism of impact on economic growth, industrial restructuring and technological progress in financial development. On this basis, the mechanism of financial development on economic growth, industrial restructuring and technological progress combine with the impact of carbon emission factor theory, analyze the financial impact of carbon emissions development path. Based on the theoretical analysis, the article using the country’s 30 provinces multiple metrics,Establish a relationship between financial development and carbon emissions based on the static model STIRPAT model study.Taking the per capita GDP and financial development indicators as explanatory variables, adding the level of urbanization in the model and other control variables, examine the impact of financial development on China’s carbon emissions. Finally, using the fixed effects model to study The effects of financial development and economic growth on China’s carbon emissions.Study results showed that: the development of China’s carbon emissions and our financial inverted U-shaped relationship conclusions. Finally, in the long run, financial development is conducive to energy conservation and the development of our low-carbon processes.