The Effect of Green Finance on the Ecological and Environmental Quality of the Yangtze River Economic Belt

Decai Tang, Hui Zhong (), Jingyi Zhang (), Yongguang Dai and Valentina Boamah
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Decai Tang: School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China
Hui Zhong: School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China
Jingyi Zhang: School of Business, Nanjing Normal University, Nanjing 210023, China
Yongguang Dai: Bache Middle School, Wujiang District, Suzhou 215000, China
Valentina Boamah: School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China

IJERPH, 2022, vol. 19, issue 19, 1-17

Abstract: Since China’s reform and opening up, the speed of economic development has increased significantly. However, at the same time, there are also serious environmental pollution problems. To resolve the deep-seated contradiction between economic growth and environmental protection, green finance has gradually gained attention in China’s development. Based on this, the paper explores the impact of green finance on the quality of the ecological environment in the Yangtze River Economic Belt. The main part of the paper is based on panel data of eleven provinces and cities in China’s 2011–2020 Yangtze River Economic Belt. Seven indicators, including chemical oxygen demand COD, harmless treatment rate of domestic waste, and green coverage rate of built-up, were used to construct an ecological and environmental quality evaluation index system. The entropy method is used to measure the ecological environment quality level and green finance development level of various provinces and cities in the Yangtze River Economic Belt. The impact of green finance development on ecological environment quality is analyzed using a panel data model. The research results show that: (1) The development level of green finance and the quality of the ecological environment in the Yangtze River Economic Belt have improved between 2011 and 2020. (2) The development of green finance has a significant positive impact on the quality of the ecological environment in the Yangtze River Economic Belt. In addition, related research has focused on the impact of green finance on a certain branch of ecological and environmental quality and lacks an analysis of the overall impact. Therefore, this paper constructs a comprehensive evaluation system for ecological environment quality and analyzes the overall impact of green finance on ecological environment quality in the region.

Keywords: green finance; ecosystem quality; entropy method; panel data (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (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)

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