Research On The Impact Of Financial Development On Regional Ecological Efficiency

With the development of China’s economy,the contradiction between resources and environment and economic development has become increasingly prominent,and environmental pollution and ecological imbalances have become increasingly serious.In the context of slowing economic growth and the period of China’s economic transition,the development of a circular economy is not only the only choice under the constraints of energy and the environment,but also the inevitable requirement for the environmental quality after the income level of the people has risen.The development of circular economy is pursuing a new type of development goals of environmental friendliness,resource conservation and economic growth.As an important factor affecting economic growth,the impact on environmental quality cannot be ignored.Therefore,this paper analyzes the mechanism of financial development affecting the development of circular economy,verifies the three major mechanisms that financial development affects ecological efficiency,and analyzes regional differences to provide policy recommendations for financial regulators.The introduction of this article first discusses the research background and research value,and then sorts out relevant literature at home and abroad.It is found that most scholars believe that the evaluation of economic development should not ignore environmental pollution,and that financial development has an important impact on environmental quality.After that,the author defines the concepts of financial development,circular economy,and ecological efficiency,theoretically analyzes the three major mechanisms by which financial development affects ecological efficiency,and proposes corresponding assumptions.Secondly,this article takes 259 prefecture-level cities and above as the research sample,and the research period is from 2009 to 2017.The financial development level and ecological efficiency of the city are measured respectively.The dynamic changes are also analyzed in the part of the ecological efficiency measurement.Thirdly,the Tobit model is used to analyze the impact of financial development level on regional ecological efficiency,and then from three perspectives of capital support effect,capital allocation effect,and enterprise supervision effect,and comparative analysis is conducted in four regions.Finally,draw the research conclusions and make targeted suggestions based on the regression results.The main research conclusions of this paper:(1)There are gradient differences in the financial development level of prefecture-level cities.Financial resources in the region are concentrated in developed provinces and cities with high administrative levels.The regional banking development level is gradually approaching,There are also significant differences in the securities industry.(2)According to the evaluation results of ecological efficiency,there are regional and scale gradient differences in the development of circular economy in prefecture-level cities.From a regional perspective,the frontiers of China’s circular economy development are in South China and North China,while the development of circular economy is ineffective in East China,Northeast China,and Central China.There is a U-shaped relationship between the ecological efficiency of prefecture-level cities and the city size.Small and medium-sized cities have the largest improvement in circular economy,and they have advantages in scale and technological progress.(3)Financial development as a whole improves ecological efficiency,and the capital support effect is significantly positive.(4)The capital allocation effect has a positive impact on ecological efficiency and forms a consistent relationship with technological progress.(5)The corporate supervision effect obviously promotes the improvement of ecological efficiency,and the supervision effect is affected by the development of the securities industry.(6)The proportion of the secondary industry and population density inhibit ecological efficiency,and the proportion of the tertiary industry and technological progress improve ecological efficiency.In view of the above conclusions,this article proposes four policy recommendations.(1)Attach importance to the development of the financial industry,guide the investment of funds,and maintain the loan-to-deposit ratio at a moderate level.(2)Push the adjustment of the industrial structure,upgrade the secondary industry,and vigorously promote the development of the tertiary industry.(3)Establish a mandatory environmental information disclosure system,unify environmental information disclosure standards,and enhance corporate environmental information disclosure awareness.(4)Choose a population size suitable for the city,control the population density of the city,and improve the level of urban management.