The Impact Of Financial Development And Financial Conservation On Carbon Emissions

At present,the suppression of carbon emissions and the mitigation of the greenhouse effect have become the consensus of the global countries.China is currently the world’s number one carbon emitter,and the solemn commitment to reduce emissions at the Paris Climate Conference.The pressure is unprecedented.Carbon emission reduction is a systematic project that requires efforts from technological advancement,industrial restructuring,clean energy development,and even the transformation of residents’ consumption structure.The above processes are inseparable from financial support.There are many factors affecting carbon emissions.This paper draws on the research of the predecessors and reasonably selects two paths that are highly related to the financial perspective and the industrial organization adjustment.Moreover,it overcomes some of the shortcomings of previous studies,and more accurately calculates the total amount of carbon emissions and the total deposits and loans of banking financial institutions,and then portrays the general situation of China’s carbon emissions and financial development level.The theoretical mechanism partially explains that financial development affects the industrial structure through three channels: guiding capital flow,expanding credit and diversifying risks,and thus affecting carbon emission levels.The other path is that financial development affects technology through six channels: FDI spillover effect and human capital accumulation and so on.After the analysis of theoretical mechanism,this paper uses the inter-provincial panel data from 2000 to 2015,based on the extended STIRPAT model,and uses the fixed-effect regression to empirically explore the relationship between financial development and carbon emissions.The results show that financial development at this stage has a negative impact on carbon emission reduction,but long-term positive effect on carbon emission reduction,that is,Kuznets’ s "U" relationship between financial development and carbon emissions,and financial indicators,financial deepening,financial intermediation scale three indicators of financial.The level of development has been concluded with a "U" type.In the empirical part,the paper also explores the relationship between financial energy conservation and carbon emissions,which combines the energy perspective and the financial perspective.The results show that there is also a “U” relationship between financial energy conservation and carbon emissions.Finally,the empirical part divides China into three major regions,namely,the eastern,central and western regions,respectively,to explore whether the relationship between financial development and carbon emissions is different in different regions.As a result,it is found that there is still a gap between financial development and carbon emissions in the eastern and central regions.U-shaped relationship,financial development and carbon emissions in the western region are positively "U" type,and at this stage,financial development in the western region can suppress carbon emissions.On the basis of the previous empirical results,the paper puts forward the policy recommendations for financial development to better promote the “green technology” and the low-carbon adjustment of the industrial structure,and calls on the national level to establish a carbon financial market covering more industries as soon as possible.