Research On The Interactive Effect Of Green Finance And Green Economy

Our country’s economic development is overall on the rise.Based on the satisfaction of the material life,people’s need for better living environment is increasingly strong.The center of our economic development has changed from previous pursuit speed to present pursuit quality,change traditional extensive development mode,promote the economy in the direction of low carbon environmental protection imperative.As an emerging concept of financial development,green finance plays a vital role in protecting the environment and promoting the development of green economy,which has been confirmed by many studies.However,relevant researches have not yet covered whether green economy will have an impact on green finance and what channels green economy can affect green finance.Therefore,in our new stage of development,it is of great significance to explore the relationship between green finance and green economy deeply.This paper firstly reviews the research literature on green finance and green economy and analyzes the theoretical basis and mechanism of the interaction between green finance and green economy.On this basis,data from 30 provinces(municipalities)from 2005 to 2019 are selected as samples,and a comprehensive evaluation index system is constructed according to the principles of data availability,scientificality and objectivity.The entropy method is used to measure the development level of green finance.Then,based on the non-radial directivity distance function(NDDF),the green economy performance index is constructed to measure the development level of green economy.Finally,based on the development level of green finance and green economy obtained from the above measurement,a panel VAR model is constructed to explore the interactive effect of green finance and green economy in China and the eastern,central and western regions.The research in this paper shows that: from the national level,there is a significant mutual promotion between green economy and green finance,which indicates that at present,green finance and green economy develop well in our country,and between the two can form a positive interaction,to protect the environment and promote the green development.At the regional level,the interaction effect between green finance and green economy is not consistent.Green finance and green economy in the eastern region can promote each other and the effect is better than the national average level.This may be because the eastern region has a higher level of economic and social development,various systems and mechanisms related to green finance are relatively perfect,and the overall level of green finance and green economy development is relatively high,thus providing a solid foundation for the positive interaction between the two.Green finance and green economy in the central region have significant interaction effect,and the two promote each other,but their promoting effect is weak.Green finance development in western China will significantly promote the development of green economy,but the driving effect of green economy development on the development of green finance has not yet emerged,which may be because some cities in western China(such as Yunnan,Gansu,Qinghai,etc.)have a late start in green finance and green economy and a low level of development.Thus,the overall level of green finance and green economy development in western China is lowered.Finally,combined with the research of this paper,it is proposed that we should promote the development of green finance and green economy better and faster,and give full play to the driving role of the two to each other.