Empirical Analysis of Dynamic Relationship Between Green Economy and Green Finance by VAR Model

Li, Xiaolin; Li, You; Cai, Jiali; Cao, Yunzhong; Li, Liangqiang

doi:10.1007/978-3-030-72795-6_46

Cited by 1 publication

(1 citation statement)

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“…Due to the problem of adverse selection and moral hazard in the green finance market, the incentive mechanism of green finance cannot be fully utilized (Wang 2021 ). Environmental regulation is an important means to correct the failure of the green finance market (Li 2017 ), playing a normative and guiding role in the fund regulation process of green finance (Sun & Lu 2021 ). The implementation effect of green finance policies is also affected by the differences in local government environmental regulation (Jin & Mengqi 2011 ).…”

Section: Theoretical Analysis and Research Hypothesesmentioning

confidence: 99%

The impact of green finance and local regulations on industrial green innovation efficiency in China

Xia,

Luo,

et al. 2023

Environ Sci Pollut Res

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When the incentive mechanism of green finance fails to fully promote green technology innovation in industrial enterprises, local government environmental regulations become an important tool in correcting this market failure. However, due to the “follow the cost” hypothesis, the moderating effect of the local government environmental regulation is heterogeneous. In order to explore the impact mechanism of green finance development on the efficiency of green technology innovation in industrial enterprises, spatial effects as well as the heterogeneous moderating effect of local government environmental regulation, this paper systematically evaluates the development level of green finance in 30 provinces in China from 2009 to 2019. It estimates the efficiency of green technology innovation in industrial enterprises using the super-efficiency SBM model, and empirically analyzes the impact mechanism and moderating effect using the spatial Durbin model. The results show that: (1) green finance not only positively impacts the efficiency improvement of green technology innovation in industrial enterprises but also has significant spatial spillover effects; (2) local government environmental regulation has a nonlinear “inverted U-shaped” moderating effect between the green finance development and the efficiency of green technology innovation in industrial enterprises. Based on the research conclusions, this paper proposes policy recommendations from the perspectives of deepening the regional connectivity of green finance and promoting joint regulation by local governments.

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Section: Theoretical Analysis and Research Hypothesesmentioning

confidence: 99%