Research On The Impact Of Financial Development On Environmental Quality

Under the circumstances that the global environmental pollution is becoming more and more serious and the ecological environment capacity is greatly reduced,it is urgent to implement environmental protection measures.The impact of the quality of financial development on environmental quality cannot be ignored.The efficient financial development level has become an improvement in environmental quality and realization,and also become an important way of sustainable developmentBased on the theory of financial structure theory,financial inhibition theory,financial constraint theory and financial sustainable development,this paper discusses the direct impact of financial development on environmental quality from three aspects:financial scale,financial efficiency and financial agglomeration,and examines financial development.The mechanism of impact on environmental quality under the influence of economic growth,industrial upgrading and foreign investment.At the same time,based on the panel data of 283 cities in China from 2003 to 2016,the paper analyzes the impact of financial development on environmental quality from both linear and nonlinear perspectives.The following research conclusions were obtained:First,the excessive expansion of financial scale will have adverse effects on environmental quality,while the moderate enhancement of financial efficiency and financial agglomeration can significantly improve environmental quality;Second,the upgrading of industrial structure and foreign direct investment have a positive adjustment effect on the relationship between the two;Third,there are regional differences in the impact of financial development on environmental quality.For the eastern and western regions,the impact of the three variables of financial development on environmental quality is similar to that at the national level.Howerer,the financial scale indicators in the central region show the effect of improving environmental quality;Forth,the threshold regression results show that when the financial development variable itself is used as a threshold variable,the impact of financial development scale on environmental quality has a "U"-type nonlinear relationship,and financial efficiency has a positive impact on environmental quality improvement with marginal efficiency.However,financial agglomeration shows a situation in which the quality of the environment deteriorates first and then improves.In addition,when the industrial structure upgrade and foreign direct investment are used as the threshold variables,the conclusion is also drawn that there is a nonlinear relationship between financial development and environmental quality.The higher the level of industrial structure and foreign direct investment,the better the financial development is to improve China.The promotion of environmental quality is more obvious.Therefore,in the context of global climate change,each region should develop a green financial strategy,optimize the industrial structure,enhance the quality of foreign investment introduction,and accelerate the development of China's financial regionalization strategy,and formulate dynamic and adjustable financial policies for different stages and regions.Economic and social sustainable development.