Evaluation Of The Green Innovation Effect Of Policies In The Green Finance Reform And Innovation Pilot Zon

In recent decades,China’s extensive economic growth mode has helped the country’s economy develop tremendously and made China the second largest economy in the world,but it has also seriously damaged the environment and created very thorny environmental issues.People are gradually awakening to the problem of environmental pollution in the new era.The concept "green water and green mountains are golden mountains and silver mountains" has gained growing acceptance.In a new attempt to synchronize "green water and green mountains" and"golden mountains and silver mountains," green financial reform has evolved into a green movement.State Council members decided at their executive meeting on June 14,2017 to experiment with green finance reform and innovation in the five provinces(regions)of Zhejiang,Jiangxi,Guangdong,Guizhou and Xinjiang.With this background in mind,this paper sets out to make a policy assessment of the overall scheme for the green finance and innovation experiments.This paper examines whether the policy will promote regional environmental improvement and regional innovation ability,that is,whether the policy has the effect of green innovation,considering both environmental regulation and financial support implications of the policy in light of its dual nature as an environmental policy and a financial policy.Based on the 6-year regional balance panel data from 2014 to 2019,this paper uses the DID method to measure the impact of the policy on green innovation.Having analyzed the average results,this paper explores the impact of policies on different regions through a heterogeneity analysis.The findings of this paper support the following position:1、Comparing the experimental area to non-experimental areas,the overall scheme of the green financial reform and innovation area has resulted in an average increase of 25.6%in patent applications for inventions.The overall scheme and policies of the green finance reform and innovation pilot zone have a substantial effect on innovation in the pilot zone and improve its innovative capability significantly.2、The overall scheme of the green finance reform and innovation pilot area can significantly increase the annual average concentration of sulfur dioxide,the 95th percentile concentration of daily average carbon monoxide,the annual average concentration of inhalable particulate matter and the annual average concentration of fine particulate matter in the policy pilot area by 8.02μg/m3,0.22μg/m3 and7.74μg/m3respectively compared with the non pilot area4.8μg/m3,the overall scheme of the green financial reform and innovation pilot zone has exacerbated the regional pollution problem.A more detailed analysis of the policy’s green effect reveals that the policy enhances regional economic development and secondary industry development,which could explain why the policy also intensifies regional air pollution.3、The innovation effect of policy will be more pronounced in regions with high human capital and research and development investments,large foreign direct investment,a large knowledge stock,strong knowledge liquidity,and a high proportion of add-value from secondary industries.The policy has more severe environmental impacts in areas with a lower level of urbanization,more advanced economic development,more open trade activities,and higher proportions of added value of secondary industry after an impact occurs.Last but not least,this paper offers some recommendations for improving and promoting the overall scheme of the green financial reform and innovation pilot zone.