IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i5p4068-d1077923.html
   My bibliography  Save this article

The Impact of Green Financial Policy on the Regional Economic Development Level and AQI—Evidence from Zhejiang Province, China

Author

Listed:
  • Min-Xing Wang

    (School of Financial Technology, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, China
    These authors contributed equally to this work.)

  • Lufei Huang

    (School of Financial Technology, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, China)

  • Zhen-Ming Chen

    (School of Finance, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, China
    These authors contributed equally to this work.)

Abstract

To explore the impact of green financial policy on the regional economic development level and the Air Quality Index (AQI), this paper selected two pilot regions of green financial reform policy to construct a quasi-experiment in Zhejiang Province. The results show that green finance reform can reduce AQI and pass the parallel trend test and placebo test, showing strong stability. Mechanism analysis shows that green finance reform can improve environmental quality mainly by increasing urban expenditure on science and technology, the level of urban innovation, and the number of urban enterprise innovations. Then, from a more general perspective, this paper discusses the internal relationship between green finance policy, environmental pollution and its control, and enterprise development and puts forward suggestions for future green finance policy formulation and policy implementation.

Suggested Citation

  • Min-Xing Wang & Lufei Huang & Zhen-Ming Chen, 2023. "The Impact of Green Financial Policy on the Regional Economic Development Level and AQI—Evidence from Zhejiang Province, China," Sustainability, MDPI, vol. 15(5), pages 1-23, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4068-:d:1077923
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/5/4068/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/5/4068/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lee, Chi-Chuan & Lee, Chien-Chiang, 2022. "How does green finance affect green total factor productivity? Evidence from China," Energy Economics, Elsevier, vol. 107(C).
    2. Jian Gao & Yi-Cheng Zhang & Tao Zhou, 2019. "Computational Socioeconomics," Papers 1905.06166, arXiv.org.
    3. Marynia Kolak & Luc Anselin, 2020. "A Spatial Perspective on the Econometrics of Program Evaluation," International Regional Science Review, , vol. 43(1-2), pages 128-153, January.
    4. Lukas Matejovsky & Sandeep Mohapatra & Bodo Steiner, 2014. "The Dynamic Effects of Entrepreneurship on Regional Economic Growth: Evidence from Canada," Growth and Change, Wiley Blackwell, vol. 45(4), pages 611-639, December.
    5. Jiafeng Gu, 2021. "Effects of Patent Policy on Outputs and Commercialization of Academic Patents in China: A Spatial Difference-in-Differences Analysis," Sustainability, MDPI, vol. 13(23), pages 1-17, December.
    6. Klevas, Valentinas & Streimikiene, Dalia & Kleviene, Audrone, 2009. "Sustainability assessment of the energy projects implementation in regional scale," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(1), pages 155-166, January.
    7. Henry Wai‐Chung Yeung, 2009. "Transnational Corporations, Global Production Networks, and Urban and Regional Development: A Geographer's Perspective on Multinational Enterprises and the Global Economy," Growth and Change, Wiley Blackwell, vol. 40(2), pages 197-226, June.
    8. Zhang, Wei & Liu, Xuemeng & Wang, Die & Zhou, Jianping, 2022. "Digital economy and carbon emission performance: Evidence at China's city level," Energy Policy, Elsevier, vol. 165(C).
    9. Wenyang Huang & Huiwen Wang & Yigang Wei, 2018. "Endogenous or Exogenous? Examining Trans-Boundary Air Pollution by Using the Air Quality Index (AQI): A Case Study of 30 Provinces and Autonomous Regions in China," Sustainability, MDPI, vol. 10(11), pages 1-20, November.
    10. Drago Cvijanović & Svetlana Ignjatijević & Jelena Vapa Tankosić & Vojin Cvijanović, 2020. "Do Local Food Products Contribute to Sustainable Economic Development?," Sustainability, MDPI, vol. 12(7), pages 1-18, April.
    11. Chien-Chiang Lee & Chi-Chuan Lee & Chun-Ping Chang, 2015. "Globalization, Economic Growth and Institutional Development in China," Global Economic Review, Taylor & Francis Journals, vol. 44(1), pages 31-63, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiaoyu He & Bo Li, 2023. "A Study on the Influence of Green Industrial Policy on Urban Green Development: Based on the Empirical Data of Ecological Industrial Park Pilot Construction," Sustainability, MDPI, vol. 15(13), pages 1-29, June.
    2. Zhixiong Tan & Haili Wu & Qingyang Chen & Jiejun Huang, 2024. "Spatiotemporal Analysis of Air Quality and Its Driving Factors in Beijing’s Main Urban Area," Sustainability, MDPI, vol. 16(14), pages 1-18, July.
    3. Libin Feng & Zhengcheng Sun, 2023. "The Impact of Green Finance Pilot Policy on Carbon Intensity in Chinese Cities—Based on the Synthetic Control Method," Sustainability, MDPI, vol. 15(15), pages 1-21, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Le Sun & Congmou Zhu & Shaofeng Yuan & Lixia Yang & Shan He & Wuyan Li, 2022. "Exploring the Impact of Digital Inclusive Finance on Agricultural Carbon Emission Performance in China," IJERPH, MDPI, vol. 19(17), pages 1-18, September.
    2. Andreea Ileana Zamfir, 2011. "Management Of Renewable Energy And Regional Development: European Experiences And Steps Forward," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 6(3), pages 35-42, August.
    3. Hu, Hui & Qi, Shaozhou & Chen, Yuanzhi, 2023. "Using green technology for a better tomorrow: How enterprises and government utilize the carbon trading system and incentive policies," China Economic Review, Elsevier, vol. 78(C).
    4. Lingzhang Kong & Jinye Li, 2022. "Digital Economy Development and Green Economic Efficiency: Evidence from Province-Level Empirical Data in China," Sustainability, MDPI, vol. 15(1), pages 1-26, December.
    5. Anetta Barska & Julia Wojciechowska-Solis, 2020. "E-Consumers and Local Food Products: A Perspective for Developing Online Shopping for Local Goods in Poland," Sustainability, MDPI, vol. 12(12), pages 1-17, June.
    6. Junhong Qu & Xiaoli Hao, 2022. "Digital Economy, Financial Development, and Energy Poverty Based on Mediating Effects and a Spatial Autocorrelation Model," Sustainability, MDPI, vol. 14(15), pages 1-24, July.
    7. Andreea ZAMFIR & Ilinca HOTARAN, 2011. "Public-Private Partnership for Regional Development of Renewable Energy," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 209-213.
    8. Lingxiang Jian & Shuxuan Guo & Shengqing Yu, 2023. "Effect of Artificial Intelligence on the Development of China’s Wholesale and Retail Trade," Sustainability, MDPI, vol. 15(13), pages 1-19, July.
    9. Kęstutis Biekša & Violeta Valiulė & Ligita Šimanskienė & Raffaele Silvestri, 2022. "Assessment of Sustainable Economic Development in the EU Countries with Reference to the SDGs and Environmental Footprint Indices," Sustainability, MDPI, vol. 14(18), pages 1-18, September.
    10. Shunbin Zhong & Huafu Shen & Ziheng Niu & Yang Yu & Lin Pan & Yaojun Fan & Atif Jahanger, 2022. "Moving towards Environmental Sustainability: Can Digital Economy Reduce Environmental Degradation in China?," IJERPH, MDPI, vol. 19(23), pages 1-23, November.
    11. Wenxuan Ma, 2022. "Exploring the Role of Educational Human Capital and Green Finance in Total-Factor Energy Efficiency in the Context of Sustainable Development," Sustainability, MDPI, vol. 15(1), pages 1-18, December.
    12. Wang, Kai-Hua & Zhao, Yan-Xin & Jiang, Cui-Feng & Li, Zheng-Zheng, 2022. "Does green finance inspire sustainable development? Evidence from a global perspective," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 412-426.
    13. Xu He & Qin-Lei Jing, 2022. "The Impact of Environmental Tax Reform on Total Factor Productivity of Heavy-Polluting Firms Based on a Dual Perspective of Technological Innovation and Capital Allocation," Sustainability, MDPI, vol. 14(22), pages 1-17, November.
    14. Zhipeng Yu & Yi Liu & Taihua Yan & Ming Zhang, 2024. "Carbon emission efficiency in the age of digital economy: New insights on green technology progress and industrial structure distortion," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4039-4057, July.
    15. Lee, Ji-Hye & Jo, Junghyo & Kim, Jong Won & Lee, Keumsook & Choi, M.Y., 2022. "Spatial distributions of restaurants emerging from pedestrian behavior and online information sharing," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 597(C).
    16. Jelena Vapa-Tankosić & Vera Miler-Jerković & Dejan Jeremić & Slobodan Stanojević & Gordana Radović, 2020. "Investment in Research and Development and New Technological Adoption for the Sustainable Beekeeping Sector," Sustainability, MDPI, vol. 12(14), pages 1-17, July.
    17. Wang, Mei Ling, 2023. "Effects of the green finance policy on the green innovation efficiency of the manufacturing industry: A difference-in-difference model," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    18. Nan Li & Beibei Shi & Rong Kang, 2023. "Analysis of the Coupling Effect and Space-Time Difference between China’s Digital Economy Development and Carbon Emissions Reduction," IJERPH, MDPI, vol. 20(1), pages 1-25, January.
    19. Lee, Chien-Chiang & Wang, Fuhao & Lou, Runchi & Wang, Keying, 2023. "How does green finance drive the decarbonization of the economy? Empirical evidence from China," Renewable Energy, Elsevier, vol. 204(C), pages 671-684.
    20. Lee, Chien-Chiang & Wang, Fuhao & Chang, Yu-Fang, 2023. "Towards net-zero emissions: Can green bond policy promote green innovation and green space?," Energy Economics, Elsevier, vol. 121(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4068-:d:1077923. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.