An Empirical Study Of The Economic And Environmental Effects Of China’s Green Finance Development

In China,the contradiction between economic growth and resource environment is becoming increasingly serious.Resource constraints are tightening and ecosystems are degrading.However,the traditional financial development model can’t achieve the requirements of coordinated economic and environmental development.Green finance emerged as a financial system arrangement to promote the sustainable development of the ecological environment.While pursuing economic benefits,it can also protect the environment on which human depend,which is in line with China’s spirit of building a green and harmonious "community of shared future for mankind".In recent years,China has attached highly value to the development of green finance.At the 2016 G20 in Hangzhou,China’s first green finance issue received strong response from participating countries.With the spread of the G20,green finance has become a hot topic in the field of economics research.There are few literatures that analyze the relationship between green finance,economy and environment.Therefore,the purpose of this article is to explore the interaction between green finance and environmental change and economic growth from an empirical study,as well as various provinces.And put specific policy recommendations at the end of the article.This has important practical significance for China’s development of green finance.Based on a comprehensive summary and combing of domestic and foreign research,this article builds a green financial indicator system and makes calculations.Taking the panel data of 30 provinces from 2007 to 2017 as a sample,the panel simultaneous model with lag items is used to analyze the relationship between green finance,economic growth,and environmental quality in China.For various provinces,this thesis also predicts the shape of the EKC and the peak pollution emissions in China.On this basis,draw conclusions and relevant policy recommendations.This thesis is mainly composed of five parts:the first part is introduction.It mainly introduces the research background,research purpose and significance,and also expounds the research methods and ideas,innovations and shortcomings of this thesis.The second part is the literature review at home and abroad.This part mainly analyzes the relevant literature for domestic and abroad from the relationship between any two of green finance,environmental change and economic growth.The third part is the statistical measurement of green finance and environmental quality.Build a green financial indicator system from the five dimensions of green credit,green securities,green insurance,green investment,and carbon finance,and make calculations;then,build a comprehensive environmental quality index to modify the traditional EKC.The fourth part is the empirical analysis of green finance,economic growth and environmental quality.By constructing a panel simultaneous model,the full sample and the empirical results of each province,city and autonomous region were analyzed in detail,and the shape of the EKC and the peak value of pollution emissions in each province of China were predicted.Part V,conclusions,government suggestions and research prospects.Through the above quantitative analysis,the research conclusion of this paper is drawn:overall,the three have a long-term equilibrium relationship,of which green finance with economic growth and environmental pollution emissions with economic growth are negatively correlated,while green finance and environmental pollution emissions are positive relevant,and China has basically fulfilled its commitment to reach the peak of pollution emissions by 2030.For the regional perspective,provinces have performed differently.The conclusion shows that China’s economic growth has the characteristics of high investment,high energy consumption and high pollution,especially in Hebei,Hubei,northeast and western regions;and that China’s green finance is mainly invested in green enterprises characterized by environmental governance,and "productive"green financial investment is insufficient,insufficient innovation of green financial products,etc.,especially in the eastern and northeastern regions.Of course,considering the time lag of green finance,the effects did not appear in the current period,and the economies of scale and environmental effects have not yet been formed.On this basis,the corresponding policy recommendations are proposed:firstly,establish a perfect green finance system and a sound guarantee mechanism.Secondly,aiming at the differences in the performance of different provinces in the economic development of green finance and the effects of environmental quality,targeted "measures based on local conditions".Thirdly,explore the supply-side reform of green finance in depth,and build a green financial market system that supports and guides the participation of multiple parties.Fourthly,optimize industrial structure and achieve coordinated economic and environmental development.The main contributions of this paper are:First,most of the traditional empirical studies choose green credit or energy conservation or environmental protection expenditure as an alternative indicator of the scale of green financial development.This paper breaks through the traditional research indicators of single or unreasonable restrictions,and builds a green financial development level evaluation system.Secondly,the analysis of the environmental effects of green finance in previous literature is mostly from a qualitative perspective,lacking the support of data and empirical research.Starting from a quantitative perspective,this study considers the energy-saving and emission-reducing effects of green finance development through empirical research,making the research conclusions more authentic and reliable.Third,most previous studies have focused on the relationship between green finance,economic growth,and environmental quality.There is a lack of overall research on the three.Therefore,this article takes the three as the research object system to reflect and judge the interactive relationship between them,as well as the correlation characteristics of regional green finance acting on economy and environment.It provides reference ideas for scholars to follow up on the research of green finance.