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Impact of Green Finance on Chinese Urban Land Green Use Efficiency: An Empirical Study Based on a Quasinatural Experiment

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  • Fen Wang

    (College of International Economics and Trade, Ningbo University of Finance and Economics, Ningbo 315175, China
    Climate Change and Energy Economics Study Center of Wuhan University, Wuhan 430072, China
    Ningbo Philosophy and Social Science Key Research Base “Regional Open Cooperation and Free Trade Zone Research Base”, Ningbo 315175, China)

  • Haikuo Zhang

    (College of Accounting, Ningbo University of Finance and Economics, Ningbo 315175, China)

  • Jingjie Zhou

    (Climate Change and Energy Economics Study Center of Wuhan University, Wuhan 430072, China
    European Study Center of Wuhan University, Wuhan 430072, China)

Abstract

To examine the impact of green finance (GF) on urban land green use efficiency (LGUE), we treat the Green Finance Reform and Innovation Pilot Zone (GFRIPZ) policy, implemented in 2017, as quasi-natural experiment. The results from a multi-period difference-in-difference model show that GF contributes to improving urban LGUE. This conclusion is validated further by a generalized random forest model. The mechanism analysis demonstrates that GF enhances LGUE through the effects of green technological innovation, industrial upgrading, and public green behavior. The moderation analysis further reveals that artificial intelligence can amplify the positive impact of GF on LGUE. The heterogeneity results show that the positive relationship between GF and LGUE is more pronounced in midwestern cities, non-resource-based cities, and cities with a high level of financial development. Therefore, it is essential to expand the GF pilot program in a structured manner and establish a coordinated mechanism to promote LGUE improvement through GF in different regions, thereby enhancing financial service efficiency for the real economy.

Suggested Citation

  • Fen Wang & Haikuo Zhang & Jingjie Zhou, 2025. "Impact of Green Finance on Chinese Urban Land Green Use Efficiency: An Empirical Study Based on a Quasinatural Experiment," Land, MDPI, vol. 14(2), pages 1-21, February.
    • Handle: RePEc:gam:jlands:v:14:y:2025:i:2:p:332-:d:1585088
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    References listed on IDEAS

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    3. Guangya Zhou & Helian Xu & Chuanzeng Jiang & Shiqi Deng & Liming Chen & Zhi Zhang, 2024. "Has the Digital Economy Improved the Urban Land Green Use Efficiency? Evidence from the National Big Data Comprehensive Pilot Zone Policy," Land, MDPI, vol. 13(7), pages 1-25, June.
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    6. Zhao, Liange & Wang, Dongmei & Wang, Xueyuan & Zhang, Zhijian, 2023. "Impact of green finance on total factor productivity of heavily polluting enterprises: Evidence from green finance reform and innovation pilot zone," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 765-785.
    7. Zhang, Zhenhua & Wang, Jing & Feng, Chao & Chen, Xi, 2023. "Do pilot zones for green finance reform and innovation promote energy savings? Evidence from China," Energy Economics, Elsevier, vol. 124(C).
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