Study On Dynamic Relationship Between Green Finance And Low-carbon Economy Development In Henan Province

As global climate change accelerates,China’s past economic development model is no longer sustainable.Various social and economic forms gradually shift to low carbon.Henan province attaches great importance to the development of green finance and low-carbon economy,and has clearly put forward suggestions on the development of green finance and low-carbon economy in a number of policies.Green finance is the blood of economic development.As an important part of supporting low-carbon economic development,green finance must play a corresponding role in economic transformation.Economic prosperity is the foundation of financial development,while low-carbon economy is the cornerstone of green finance,which can provide guidance for the development of finance.Therefore,it is necessary to conduct in-depth discussion on the dynamic relationship between financial industry and low-carbon industry.Through sorting out existing theories and literature,this paper analyzes the interaction mechanism between green finance and low-carbon economic development:Green finance uses financial instruments to adapt to various needs,thus driving the development of low-carbon economy;Develop low-carbon economy,bring new profit growth point for financial industry,and promote the transformation of traditional finance into green finance;Secondly,the entropy method is used to calculate the green finance and low-carbon economic development index of 17 prefecture-level cities in Henan Province from 2010 to 2019.Based on the PVAR model,Using green finance development index and low-carbon economic development index as endogenous variables,this paper explores the economic interaction between various regions in Henan Province,and analyzes the specific relationship between the two through impulse response graph.The results show that the interaction between green finance and low-carbon economy has shown a good effect in the central and southern parts of Henan Province,but there is no significant interaction in the northern part of Henan Province.On this basis,this paper according to the research conclusion,put forward the corresponding policy Suggestions: establish green finance and long-term mechanism of low carbon economy: perfecting the relevant laws and regulations,the government actively introduce green finance policy of low carbon economy matching with green finance and information sharing mechanism of low carbon economy,improve the green financial risk management system under low carbon economy;Innovate green financial products to support low-carbon economy;On the basis of regional characteristics,we should develop a variety of low-carbon economic forms and promote the benign interaction between green finance and low-carbon economy.