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Green finance policy and green economic transformation

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  • Wang, Sanchuan
  • Shu, Wanwu
  • Cui, Lianbiao

Abstract

Green finance policies seek to promote sustainable development, but their effectiveness in driving urban green economic transformation remains underexplored. Using a difference-in-differences approach, this study investigates the impact of China's green finance innovation and reform pilot zones (GFIR) policy on green economic transformation. We examine the mediating effects of technological innovation, carbon emission efficiency, and economic agglomeration. Our findings reveal that the GFIR policy significantly promotes green economic transformation, with mediating factors playing crucial roles. Heterogeneity analysis reveals variations in policy effectiveness across different city types. These results contribute to the literature on green finance and sustainable development, providing policymakers with valuable insights into designing targeted interventions to accelerate the transition to a greener urban economy.

Suggested Citation

  • Wang, Sanchuan & Shu, Wanwu & Cui, Lianbiao, 2024. "Green finance policy and green economic transformation," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    • Handle: RePEc:eee:finana:v:96:y:2024:i:pb:s1057521924007178
    DOI: 10.1016/j.irfa.2024.103785
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    More about this item

    Keywords

    Green finance; Green economic transformation; Technology innovation; Carbon emission; Economic agglomeration;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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