The innovation effect of green finance reform—based on the green innovation vitality perspective

Abstract

In order to develop green nance and realize the coordinated development of the environment and the economy, China set up the Green Finance Reform and Innovation Pilot Zone in 2017. This paper takes the green nancial reform and innovation pilot zones set up in China as an exogenous shock, takes the ve provinces that set up green nancial reform and innovation pilot zones in 2017 as the experimental group, and takes the other 25 provinces that did not set up or set up green nancial reform and innovation pilot zones later as the control group, and constructs panel data for the period of 2012-2021 for the 30 provinces in China (excluding Hong Kong, Macao , Taiwan, and Tibet) panel data, using synthetic control method, double difference model and mediation effect model to analyze the impact and mechanism of green nancial policies on China's green innovation vitality. It is found that the implementation of green nancial policies can signi cantly enhance the level of green innovation vitality in China. The results of the heterogeneity study show that the positive effect of green nancial policies is greatest in the east, followed by the west, while the positive promotion effect is not obvious in the central region. The results of the mechanism study indicate that green nancial policies promote the level of green innovation vitality through government incentive behavior. The ndings of the study can provide effective support for the further promotion of the pilot policy and provide important insights for green development.