Research On The Impact Of Green Finance On The Optimization Of Industrial Structure

In October 2015,General Secretary Xi Jinping pointed out the five development concepts of "Innovation,Coordination,Going Green,Openness,and Sharing" at the Fifth Plenary Session of the 18 th Central Committee of the CPC.Since then,green economic development has become the main theme of China’s economic development.Green finance refers to the financial service that supports the development of green industries.In the new development stage,green finance has become an important tool to promote the green economic development.Green finance drives the optimized development of industrial structure through functions such as capital formation,capital orientation,and factor integration,thereby accelerating the green development of the Chinese economy.This paper has a deep dive into the impact of green finance on the industrial structure optimization.The detailed contents are as follows: Firstly,this paper defines the concepts of green finance,green economy,industrial structure,industrial structure optimization,green industry,pollution industry,etc.Then it reviews the basic theories such as externalities,public goods,Pigou tax,Hoffman’s theorem and environmental Kuznets curve(EKC).The paper systematically analyzes the influencing mechanism of green finance on industrial structure optimization from capital orientation,industrial integration,etc.Secondly,the paper investigates the development status of green finance and industrial structure in China.In terms of green finance,this paper constructs an evaluation index system from three aspects of green credit,green securities,and green insurance for measurement.In terms of industrial development,this paper constructs an evaluation index system for analysis from three aspects of advancement,rationalization,and greenization.Thirdly,the relevant data from 2007 to2018 is selected to calculate the green finance comprehensive index and the industrial structure comprehensive index respectively.A dynamic panel regression model is built to empirically test the impact of green finance on industrial structure development.The research results show that green finance can promote the optimized development of China’s industrial structure and it presents significant regional heterogeneity;the improvements of technological progress,human capital,urbanization and other factors can also promote the optimization and upgrading of industrial structure.Finally,on the basis of summarizing the research conclusions,the paper offers specific countermeasures and suggestions for green finance deepening to promote the industrial structure upgrading from four aspects of the state,local governments,financial institutions,and enterprises.