Research On The Mechanism Of Green Finance Supporting Green Development

In recent years,along with the deterioration of China's natural ecological environment,the government has become more and more concerned about the green development.Green development has become a national development strategy,and finance as the center of economic development,occupies a vital positionin this transformational battle.Government departments have successively issued a number of policies to support the development of green finance.However,at present,China's demand for green capital is obviously greater than the supply,and the participation of social capital is still very low.It is also urgent to study how to effectively use the limited green capital to achieve green development.This paper adopts qualitative and quantitative analysis methods,theoretical and empirical combined research methods and comparative analysis methods to study the mechanism of green finance supporting green development in China.Firstly,this paper introduces the research background and research significance.Based on the domestic and foreign research status of green finance support green development,it is found that the research on the path of green finance supporting green development from an empirical perspective is still in the blank,this pointing out the direction for this paper.Secondly,it expounds the meaning of green development and green finance and the theoretical basis of green finance supporting green development.Green finance is a new financial model,of that the financial sector targets environmental protection,and put the environmental damage in the process of economic development as a potential cost when making investment decision,and under the guidance of relevant policies,guiding the social resources to the field of environmentally friendly and sustainable development.On the basis of relevant theories,by analyzing the mechanism of green finance supporting green development,it is found that green finance mainly affects green development from three aspects,namely,the direct effect of green capital supply on green development,the role of green financial information advantages in promoting green technology,the role of green finance in relation to the strong position of enterprises in the supervision of corporate environmental behavior.Thirdly,using Statal4.0 software to empirically analyze the mechanism of green finance support green development by introducing regulatory variables and interaction terms in the random panel effect model.The entropy weight method is used to calculate the green financial development comprehensive index and green development index of 30 provinces and cities in China from 2007 to 2016.It has been found that in China'spast ten years,the level of green finance development and the level of green development are generally on a wave-like rise.The average score of the green finance comprehensive development index rose from 0.17 in 2007 to 0.24 in 2011,then fell,and reached 0.24 in 2015,falling back 0.19 in 2016,always at a low value.The average score of the green development index rose from 0.254 in 2007 to 0.28 in 2016,growing slowly but achieving a 10%growth.And most of them got positive growth in past ten years.,only a few provinces are declining.Then the green development index measured by the entropy weight method is taken as the explanatory variable.Based on the analysis of the mechanism of the green finance supporting the green development,the environmental behavior of the enterprise is taken as the adjustment variable.At the same time,the relevant control variables are selected from the four dimensions of industrial structure,natural resource level,resource utilization level and social livelihood.Firstly,the selected relevant indicators and the green financial development index are used together as explanatory variables to conduct a random panel effect regression on the green development index.Then,the pollution index representing the environmental behavior of the enterprise is taken as the adjustment variable,and the interaction item formed by the green financial development index is introduced into the regression model to perform the random panel effect regression again.The results show that in the control variables,the added value of the secondary industry as a percentage of GDP has an inhibitory effect on the green development index,and the effect is significant;the per capita water resources has a positive effect on the green development index,and the effect is significant;the energy consumption per unit of GDP has a mechanism effect on the green development index,and the effect is significant;the impact of per capita disposable income on the green development index cannot be statistically significant;the level of green finance development has a positive effect on the level of green development,and the effect is significant.The pollution index has the most obvious inhibitory effect on the green development index,and the effect is significant.At the same time,the reduction of pollution index can expand the support role of green finance for green development.It is concluded that adjusting the industrial structure,improving the level of natural resources,and improving the level of resource utilization can promote the progress of green development;green finance has direct support for green development,but the direct effect is not outstanding,indicating that the supporting China's green finance for green development has not been fully realized.In the future,the allocation of green funds should be rationally implemented to increase support for green development.Regulating corporate environmental behaviors can expand the support of green finance for green development,so this way should fully play the role of green finance in supporting green development.Studying the mechanism of green finance supporting green development in China can clarify the internal mechanism of green finance support for green development,and help to give full play to the support role of green finance for green development.It is important for the current economic restructuring of China and the sustainable development of green economy.The practical value of this paper has theoretical guiding significance for comprehensively and scientifically formulating policies for green finance to effectively support green development.