Effect Of Financial Development On Carbon Emissions

With the implementation of the national environmental protection policy,the energy consumption rate of China has gradually slowed down in recent years.However,the coal-based energy consumption structure makes carbon emissions problem still unresolved.In particular,the steady advancement of the urbanization strategy and the comprehensive liberalization of the second-child policy cause China to face greater pressure to reduce emissions.As the core of modem economic development,finance is an important guarantee for achieving low-carbon economy and green development,providing important financial support for the development of pollution control technology and industrial structure optimization.Based on that,it is of great practical significance to clarify the relationship between financial development and carbon emissions.In general,the presence of natural factors such as wind direction,airflow,and topography makes the carbon emissions of surrounding provinces have a certain impact on the environmental quality of the province.Therefore,the use of spatial econometric models to explore the relationship between financial development and carbon emissions can provide a deeper understanding of the interaction between them.At the same time,due to factors such as resource endowment,development level,energy structure and industrialization level,inter-regional financial development and carbon emissions have different characteristics.Exploring the impact of regional heterogeneity on the relationship between financial development and carbon emissions is conducive to better implementation of differentiated financial policies and various pollution control measures.To this end,this paper takes panel data from 30 provinces in China from 2000 to 2016 as a sample.Firstly,on the basis of analyzing the existing quantitative indicators of financial development,the entropy method is used to construct a comprehensive financial development index including financial scale,structure and efficiency.Secondly,ten kinds of energy sources such as coal,crude oil,natural gas and cement are used to measure the carbon dioxide emissions of 30 provinces and cities.And the spatial characteristics of carbon emissions are tested through the spatial autocorrelation index.Then,based on the theoretical analysis of the scale,structure and technical effects of carbon emissions affecting financial development,an empirical analysis model is constructed.Finally,the impact of financial development on carbon emissions is explored through the spatial autocorrelation model and the spatial error model,,and countermeasures are proposed based on the research conclusions.Concluded as follow:There is obvious spatial correlation and path dependence between China’s provincial carbon emissions.The environmental quality of each province has a positive correlation of "one glory,one loss and one loss".The implementation of the previous environmental protection policy will help the later environment.At the national level,financial development significantly promotes carbon emissions,that is,the role of scale effect of financial development in promoting carbon emissions is significantly greater than that of structural effects and technological effects;At the regional level financial development in the central region has the strongest contribution to carbon emissions,followed by the east and the west.The reasons for the western and eastern regions are probably the economic development level and the path dependence of carbon emissions At the same time,industrial structure upgrading and technological advancement can significantly reduce carbon emissions,while energy consumption will promote carbon emissions,improving energy efficiency,optimizing industrial structure,and accelerating technological innovation are still the direction of future efforts to achieve carbon emissions targets.To this end,this paper proposes countermeasures from the perspectives of establishing differentiated environmental regional policies,using finance to optimize industrial structure and technological progress.