Study On The Impact Of Financial Development On Environmental Quality

In recent years,China has entered the "new normal" of the economy,the growth rate has changed to a medium-high speed,and the growth model has also changed from the past "GDP-oriented economy" to a high-quality growth model aimed at the "three driving forces".In the early stage of economic growth,the traditional economic growth model of "three high and one low" driven by heavy industry not only leads to the serious excess of industrial capacity in China,but also causes serious pollution to the environment,which is not conducive to sustainable economic development.Previous studies have found that financial development may become a powerful regulation means to mitigate environmental degradation.Its capital effect can leverage more idle social funds to flood into the field of environmental protection,and promote the green transformation of the industry while improving the potential of economic growth.On the one hand,financial development can provide capital support for enterprises.By improving the financing convenience of small,medium and micro enterprises,it can enhance the environmental awareness of enterprises and promote the rational allocation of market resources,thus promoting the development of regional environmental protection undertakings.On the other hand,appropriate financing policies can encourage enterprises to invest in energy conservation and emissions reduction equipment.In this way,the emission of pollutants can be restrained from the source,and more funds are provided for enterprises to carry out research activities and technology updates,so as to reduce energy consumption while improving energy efficiency and reducing pollutant emission.However,the economic growth caused by financial development will inevitably promote the expansion of production enterprises and increase the demand for energy.Combined with China’s current coal-based energy supply mode,it is bound to increase the emission of environmental pollutants by stimulating energy demand.Therefore,this study firstly combs the previous research results and analyzes the mechanism of financial development on environmental quality from the perspectives of capital effect,technology effect and structure effect,based on the environmental Kuznets curve theory and financial development theory.On this basis,this paper using the "Vertical horizontal pull-up" method to construct the comprehensive evaluation system of financial development,using "entropy value method" to synthesise industrial "three wastes" pollution index,and using eight fossil energy consumption to calculate the carbon dioxide emissions.This study takes them as the core explanatory variable and explained variable respectively,builds a dynamic empirical test model of financial development on environmental pollution,explores its effects and regional differences,and verifies the shape of the environmental Kuznets curve.Then three variables,economic growth,technological innovation and industrial structure were introduced to analyze the intermediary mechanism.Finally,this paper introduces a dynamic threshold model to analyze the nonlinear impact of financial development on environmental quality under different levels of financial development,human capital and energy structure.The results show that the financial development in China can improve the environmental pollution,and there is an "inverted U" relationship between economic development and environmental quality.For the pollutants of "three industrial wastes",the emission reduction intensity in the eastern region is greater than that in the western region and the central region.In terms of carbon dioxide emission,the emission reduction intensity in the western region is greater than that in the central region and the eastern region.Through the discussion of the internal mechanism,it is found that the capital effect of financial development will aggravate the deterioration of the environment,while the technological effect and the structural effect will reduce the environmental pollution.By analyzing the nonlinear relationship from the perspectives of financial development,human capital and energy structure,it is found that under the influence of financial development,the relationship between financial development and environmental quality presents an "inverted U-shaped" relationship.Under the influence of human capital,financial development has a "exponential & logarithmic growth" relationship with industrial waste pollutants,and a "logarithmic growth" relationship with carbon dioxide emission intensity.Under the influence of energy structure,financial development has a "linear" relationship with "industrial wastes" pollutants,and a "logarithmic" relationship with carbon dioxide emission intensity.Based on the above conclusions,this study proposes that China should improve the green financial system at the present stage,innovate the green financing mechanism,promote the research and introduction of green technology,and strive to cultivate the reserve army of green talents.At the same time,China should optimize the energy structure and accelerate the transformation and upgrading of industrial structure to achieve green growth at an early date.