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Green Finance and Industrial Low-Carbon Transition: Evidence from a Quasi-Natural Experiment in China

Author

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  • Yayun Ren

    (School of Economics, Guizhou University of Finance and Economics, Guiyang 550025, China)

  • Jian Yu

    (School of Economics, Guizhou University of Finance and Economics, Guiyang 550025, China)

  • Shuhua Xu

    (School of Business, Xiangtan University, Xiangtan 411105, China)

  • Jiaomei Tang

    (School of Economics and Management, Jiaying University, Meizhou 514015, China)

  • Chang Zhang

    (School of Finances, Zhongnan University of Economics and Law, Wuhan 430073, China)

Abstract

Under the constraints of carbon peaking and carbon neutrality goals, research on effective policies for China’s industrial low-carbon transition is of both theoretical and practical importance. This study conducts a difference-in-differences strategy to investigate whether the green finance pilot policy (GFPP) promotes industrial low-carbon transition based on a provincial panel dataset. Our results show: (1) The GFPP has decreased the industrial carbon intensity of pilot zones by 4.09% on average, which still holds after several robustness checks. (2) This negative effect of the GFPP varies by geographic location (east, central, and west regions) and population size (high and low population groups). (3) The GFPP mainly promotes the low-carbon transition of industrial enterprises in the pilot zones by promoting energy transition rather than developing short-term emission reduction technologies. Finally, we propose some corresponding policy recommendations.

Suggested Citation

  • Yayun Ren & Jian Yu & Shuhua Xu & Jiaomei Tang & Chang Zhang, 2023. "Green Finance and Industrial Low-Carbon Transition: Evidence from a Quasi-Natural Experiment in China," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:6:p:4827-:d:1091587
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    References listed on IDEAS

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    2. Rabindra Nepal & Yang Liu & Kangyin Dong & Tooraj Jamasb, 2024. "Green Financing, Energy Transformation, and the Moderating Effect of Digital Economy in Developing Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(12), pages 3357-3386, December.

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