An Empirical Study On The Impact Of Financial Development On Carbon Emissions In China

In recent years,China’s rapid economic development,the quality of the socialist market economy has gradually improved,people’s living standards continue to improve,in the context of the epidemic,China’s economy still maintains positive growth,the stable and sustained economic development,bringing China’s international status,social harmony,the continuous improvement of the market economy system,the improvement of people’s living standards,but behind these achievements,the increasing frequency of Global geological disasters also keep reminding us that the earth’s environment seems to be suffering more serious damage.Behind the industrial development,technological progress and improvement of people’s life is the increasing carbon emission,now China’s carbon emission is the first in the world,the huge carbon emission brings immeasurable serious consequences,China gradually recognizes the seriousness of this problem,and pays attention to the quality of economic growth at the same time as the speed of economic growth,and starts to introduce a series of relevant policies and laws and regulations to change the economic growth model,hoping to reduce carbon emission and improve the environment.It is hoped that this will reduce carbon emissions and improve the natural environment.The results of the analysis show that after the change of economic growth model,China will move towards a diversified society and the carbon emission will change from an upward trend to a downward trend.The emergence of carbon peaking and carbon neutral strategies is a strategic decision that China has made proactively as it is now in a critical strategic opportunity period for its development and the global environment is becoming more complex and volatile.Nowadays,at the moment of global economic development,countries have started social energy changes again,and this general background has forced the rapid transformation of China’s development mode and the construction of green low-carbon economic system.This paper mainly studies how China’s financial development affects carbon dioxide emissions,and on the basis of sorting out relevant literature,analyzes the relevant theories of financial development and carbon emissions,as well as the relevant transmission mechanism of financial development affecting carbon emissions,and by collating the data related to financial development and carbon emissions in China in the past 20 years,the relationship between the two is visually represented by actual data,and the general conclusion is obtained,after which the empirical evidence is used to After that,empirical evidence is used to further prove the obtained conclusions.This paper uses financial correlation rate and financial system efficiency to measure economic development,and combines the data of GDP per capita,technological progress,industrial institutions and foreign direct investment in China from 2000 to2020 to establish a VAR model to analyze the impact of each factor on carbon emissions from multiple perspectives,and makes relevant suggestions based on the empirical results.The empirical results show that: the financial correlation rate can suppress carbon dioxide emissions;the efficiency of the financial system has a small suppressive effect on carbon emissions;the relationship between GDP per capita and carbon emissions is consistent with the environmental Kuznets theory;technological progress has a suppressive effect on carbon dioxide emissions;industrial structure and foreign direct investment have a significant suppressive effect on carbon emissions.Overall,financial development is suppressing CO2 emissions.Based on the conclusion of this study,this paper puts forward our own thoughts on reducing carbon emissions: from the perspective of financial development,we should continue to deepen financial development in the next step,optimize the allocation of financial resources in China,focus on developing green finance,vigorously develop the green financial market,and continuously optimize the green financial structure;from the perspective of technological innovation,we should increase the innovation of energy-saving and emission reduction technologies,take into account financial development and From the perspective of industrial structure,we should optimize the industrial layout and promote the green and coordinated and sustainable development of industries.