Study On Influences Of Financial Support To China’s Industry Carbon Abatement

Industry carbon emissions reduction is a hot issue of economic development, according to the theory of financial deepening and financial function, financial support can gather a lot of social wealthy, it allocates capital in different sectors of the national economy, and provides a solid material foundation for the growth and technological progress of the enterprises, then improves the technology efficiency of production. Now, China is in a critical period of economic transformation and upgrading, form the growth model of high emissions and high pollution to the sustainable low carbon economy is the only way to maintain steady growth of economy.Paper expounded the theories of financial deepening, financial constraints, endogenous financial and financial function, and so on, and concluded theoretical basis of financial support to the real economy, then used the method of game theory and proposed theoretical assumptions for the driving effect of financial support to industry carbon emissions reduction in China. On the theoretical basis and theoretical assumptions, paper explored the influence mechanism of financial support to industry carbon emissions reduction in China. Then used LMDI decomposition method to analyze the influence factors of industry carbon emissions reduction, and referenced the stochastic frontier production model which proposed by Battese and Coelfi(1995), used the change index of enterprise’s technological progress as the technical effect for industry carbon emissions reduction in China, focused on the effect of financial support to enterprise’s technical by VAR model, and analyzed 20 industries data in China and 8 prefecture-level cities data from 2000 to 2013 by panel threshold model, to explore the driven effect of financial support to carbon emissions reduction.Mainly conclusions: First, financial support scale had obvious role in promoting the industry carbon emissions reduction in China, that determined industry carbon emissions reduction can’t without the effective financial support.Second, the influence of financial support efficiency to industry carbon emissions reduction inverted “U” type, therefore, when the financial support efficiency was higher than a certain threshold, it will play a positive role to industry in China. Third, the empirical results of financial support to industry carbon emissions reduction concluded that financial scale, financial structure and financial efficiency had positive influence on carbon emissions reduction technology. Thanks to the cumulative effect of scale and efficiency, technology of carbon emissions reduction was strongly influenced by financial scale and financial efficiency. Forth, the coordination of synchronous development of financial scale, structure and efficiency, creating a suitable financial environment for the industry innovation, which is beneficial to carbon emission reduction in China.