Can Green Finance Effectively Promote the Carbon Emission Reduction in “Local-Neighborhood” Areas?—Empirical Evidence from China

Jing Sun, Ningning Zhai, Jichao Miao () and Huaping Sun
Additional contact information
Jing Sun: Department of Business Management, School of Business, Qingdao University, Qingdao 266061, China
Ningning Zhai: Department of Business Management, School of Business, Qingdao University, Qingdao 266061, China
Jichao Miao: Department of Business Management, School of Business, Qingdao University, Qingdao 266061, China
Huaping Sun: School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China

Agriculture, 2022, vol. 12, issue 10, 1-13

Abstract: Carbon emission reduction is a systematic project requiring support from policy, capital, and technology in its promotion, which represents a greater need for green finance. Frontier research focuses on the impact of green finance on local CO 2 emissions, but generally ignores its ripple impacts on carbon emission reduction in adjacent areas. Combining panel data from 30 Chinese provincial-level cities from 2004 to 2019, this study employs a spatial panel Durbin model to empirically test the ripple effect of green finance on carbon emission reduction in adjacent areas and further investigate the formation mechanism of the ripple effect. The results are as follows: (1) Green financial development has a significant inhibitory effect on local and neighboring CO 2 emissions, which affirms the existence of the ripple effect of green finance. (2) Through formation mechanism analysis, it is found that the upgrading of an industrial structure has played a transmission role in the ripple effect of green finance. Finally, based on the empirical results, some suggestions are put forward from the perspectives of innovating green financial services and promoting the effective alignment of green financial development with carbon emission reduction targets and the deep integration of green finance and regional green industry development, so as to better develop the potential of green finance in the realization of the carbon reduction goals.

Keywords: green finance; carbon emission reduction; ripple effect; industrial structure upgrading (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.mdpi.com/2077-0472/12/10/1550/pdf (application/pdf)
https://www.mdpi.com/2077-0472/12/10/1550/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jagris:v:12:y:2022:i:10:p:1550-:d:925306

Access Statistics for this article

Agriculture is currently edited by Ms. Leda Xuan

More articles in Agriculture from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().