The Research On The Regional Heterogeneity In The Development Of China’s Green Finance

Green finance originates from "environmental finance" and "sustainable finance".As an emerging financial industry derived from traditional finance,green finance can give full play to its resource allocation role with the help of market forces and use diversified financial instruments to guide the flow of funds to the green field.At this stage,China has initially completed the top-level design of green finance,the domestic green finance market is increasingly prosperous,and the social and ecological benefits of green finance are becoming increasingly apparent.However,there is a certain regional heterogeneity in the development of green finance due to the differences in resource and environmental conditions and the level of economic and financial development in each region.Based on previous relevant research results and guided by sustainable development theory,endogenous financial development theory and financial inhibition and financial deepening theory,this paper analyzes the current situation of green finance development in each region of China from the perspective of green financial products and constructs a green financial development index evaluation system containing five first-level indicators: green credit,green bonds,green investment,green insurance and carbon finance.On this basis,the degree of green finance development of 30 provinces(municipalities and regions)in Chinese mainland during 2018-2020 was measured according to the above-mentioned green financial development index evaluation system,and the regional heterogeneity characteristics presented by green finance development in China were compared and analyzed based on the results of green finance index measurement and the results of green credit and other first-level indicators.Finally,this paper analyzes the important influencing factors of green financial development and their mechanisms of action,and empirically investigates the effects of economic development level,financial development level,industrial structure optimization,environmental pollution level,science and technology innovation level,and human capital quality on green finance development in each region of China with the help of random effects model.Through the above research,this paper mainly draws the following conclusions:the degree of green finance development varies greatly among economic regions in China;the eastern region is significantly ahead in green credit development;the phenomenon of unbalanced development of regional carbon finance market is relatively prominent;the degree of green finance development in each region is generally negatively correlated with the degree of local environmental pollution;the contribution of each influencing factor varies greatly among economic regions.Based on the above conclusions,this paper puts forward the following suggestions for the development of green finance in China: fully utilize financial tools and flexibly develop green credit;give full play to the demonstration role of regional carbon market and promote the coordinated development of regional carbon market;promote the concept of green development and strengthen environmental pollution control;strengthen the construction of green financial market and promote green finance innovation.