Research on the Spatial Impact of Green Finance on the Ecological Development of Chinese Economy

Abstract

Carbon peaking and carbon neutralization have become catalysts for the development of green finance in China. The possible risks of climate change are also being considered by an increasing number of financial institutions. Environmental pollution and deterioration have become the main drivers of China’s unbalanced and insufficient development in the new era. As a new financial model, green finance has attracted much attention from people and the society. Promoting and integrating this concept into economic transformation and ecological civilization strategies can guarantee China’s high-quality green development through economic ecology. This paper analyzes the relationship between the development of green finance and the development of economic ecology. The research conclusion is of great significance to speed up the construction of ecological civilization in China. Firstly, this paper analyses the spatial correlation between green finance and economic ecological development in China using the Moran’s index. Secondly, this paper constructs a spatial econometric model and performs a regression empirical analysis using the panel data of 30 provinces in China from 1999 to 2020 to understand the impact of green finance on China’s ecological development. Results show that green finance demonstrates strong spatial agglomeration and that the development of economic ecology maintains a stable spatial positive correlation. Moreover, the spatial difference in economic ecological development is more obvious than that in green finance development. The development of green finance not only has a significantly positive role in promoting the economic and ecological development of a certain province but also promotes the development of economic ecology in the surrounding provinces. The development of economic ecology itself generates a positive spatial spillover effect, that is, improving the economic ecological level of a province will also improve the corresponding level of the surrounding provinces.

Spatial differentiation and influencing factors of green finance development level in China

“…At present, many scholars mainly study the impact of green finance on economic development and environmental development from a spatial perspective. Wu (2022) constructs a spatial econometric model and performs a regression empirical analysis to understand the impact of green finance on China's ecological development. Besides, some scholars constructed a spatial Dubin model to analyze the impact of green finance on the ecological environment and its spatial spillover effects (Li and Gan, 2020;Huang and Chen, 2022;Li et al, 2022).…”

Environmental competitiveness of the economy: Opportunities for its improvement with the help of AI

“…-Living (which is especially important for aging societies, as it forms their potential to overcome demographic crises) (Wu, 2022); -Work (attracting and retaining highly qualified personnel, including among migrant workers) (Sabbir and Taufique, 2022); -Investment ("green" finance is gaining popularity around the world) (Awawdeh et al, 2022); -International foreign economic cooperation (an example is the introduction of a carbon tax for exporters in the European Union) (Owusu Kwateng et al, 2022).…”

Coupling coordination analysis of green finance and industrial technology innovation: A case study in Zhejiang Province, China

“…As a service method for the comprehensive development of projects in the fields of environmental protection and energy conservation, green finance provides the advantages of supporting environmental improvement, addressing climate change, and promoting the efficient use of resources (Mamun et al, 2022). From a broader perspective, the effects of green finance are recognized worldwide, including the optimization of the supply structure of regional production factors , significantly weakening the excess capacity of regional traditional industries (Xiao and Peng, 2021), improving the development speed of regional green industries (Wu, 2022), and improving the regional green production engine (Rasoulinezhad and Taghizadeh-Hesary, 2022). Green finance has injected vitality into sustainable development.…”