Research On The Spatial Effect Of Green Finance On High Quality Economic Development

In recent years,the rising awareness of global climate change and environmental protection has prompted the rise of green finance as an emerging form of finance.Green finance refers to the integration of environmental protection concepts into financial activities to promote the efficient use of resources through investment,financing and risk management methods such as green credit,green securities and green insurance.In this paper,30 provinces municipalities,and autonomous regions in China(excluding Hong Kong,Macao,Taiwan,and Tibet)are selected for the period 2011-2020 to study the impact of green finance on high-quality economic development and to examine its mechanisms based on financial technology.High-quality economic development includes economic,industrial structure,environmental and social aspects,which are reflected in five areas:innovation,coordination,green,openness and sharing.Green finance is the use of green financial tools to promote industrial restructuring and achieve the dual objectives of economic growth and environmental protection by directing the flow of funds to environmental protection,energy conservation and low-carbon areas.Green finance takes into account the degree of environmental pollution and energy consumption factors,adopts differentiated lending policies through green credit,increases the proportion of direct financing for green enterprises through green securities,strengthens the benefit mechanism,stability mechanism,credit enhancement mechanism and incentive mechanism through green insurance,promotes the development of circular economy through green investment,strengthens the support for low-carbon,green and environmental protection enterprises through green finance,and promotes the transformation of the low-carbon economy,thus better contributing to high-quality economic development.Financial technology refers to the use of modern information technology means to innovate and upgrade financial business and the financial system,and promote the digitisation,intelligence and networking of financial business,which is reflected in three aspects:the breadth of digital financial coverage,the depth of use and the degree of digitisation.The development of green finance has contributed to the progress of FinTech in terms of the breadth of digital financial coverage,i.e.through the promotion of green finance,FinTech has been able to cover a wider range of financial areas and user groups;the development of green finance has also contributed to the progress of FinTech in terms of the depth of use of digital finance,i.e.through the promotion of green finance,FinTech has been able to be more deeply applied to various aspects of green finance;The development of green finance has also contributed to the progress of fintech in terms of digitalisation,i.e.through the promotion of green finance,fintech has been able to provide green financial services more digitally.The role of fintech in driving the economy is demonstrated by the fact that fintech increases the number of people using it and the participation of financial institutions,solving the problem of diseconomies of scale of traditional financial institutions;fintech also facilitates the upgrading of services in the traditional financial industry and makes up for the lack of traditional financial services;fintech boosts economic growth by facilitating customer experience and promoting residential consumption.To verify the mechanism of the impact of green finance on high-quality economic development and to explore the application and development trend of financial technology in green finance,this paper uses the spatial Durbin model to analyse the impact of both,examines the direct,indirect and total effects of green finance on highquality economic development,and studies the mechanism role of financial technology.The results show that green finance and economic quality development show a positive correlation,and the spatial impact of green finance on economic quality development is stronger when there are economic spatial linkages.Among them,the direct effect of green finance on the local area and the indirect effect on the surrounding area are both positive,and the indirect effect is much larger than the direct effect.The results of the mechanism test show that the development of green finance can promote the increase of the intensity of financial technology,especially the development of local green finance can drive the development of financial technology in the local and surrounding areas,and promote the increase of financial technology in the breadth of coverage,depth of use and digitalisation.Therefore,the direct impact of green finance on highquality economic development and the results tested through the fintech mechanism are both positive.In conclusion,green finance has a positive impact on high quality economic development.In the future,it is necessary to improve the circulation of financial factors in the region,establish a multi-level platform for green finance,promote the integration of financial technology and green finance,and strengthen financial regulation and technology supervision to jointly achieve high-quality economic development.