The Emission Reduction Effect of Financial Agglomeration under China’s Carbon Peak and Neutrality Goals

Yanan Wu (), Biyu Peng and Yehui Lao
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Yanan Wu: School of Economics & Management, South China Normal University, Guangzhou 510006, China
Biyu Peng: School of Economics & Management, South China Normal University, Guangzhou 510006, China
Yehui Lao: College of Economy and Trade, Zhongkai University of Agriculture and Engineering, Guangzhou 510225, China

IJERPH, 2023, vol. 20, issue 2, 1-18

Abstract: The existing literature on the influencing factors of carbon emissions ignores the relationship between financial agglomeration and carbon emissions. Based on the analysis of the emission reduction history of major countries, this paper mainly uses the provincial-level data of China from 2002 to 2018 to explore the impact of financial agglomeration on carbon emissions. The conclusions are as follows: (1) China lacks carbon tax policies; there are many drawbacks in the carbon trading market, and a “bottom-up” voluntary emission reduction mechanism has not been formed. (2) China’s carbon emissions and financial development are characterized by spatial agglomeration. (3) Financial agglomeration can reduce carbon emissions. In central China, the low-carbon region, and the pilot regions for carbon trading, financial agglomeration has a greater impact on reducing emissions. (4) Financial agglomeration can reduce emissions by reducing the proportion of the secondary industry and increasing the proportion of the third industry. (5) Financial agglomeration can still lower carbon emissions when the spacing effect is taken into account. Finally, according to the conclusion, this paper puts forward relevant suggestions to help China reduce carbon emissions.

Keywords: financial agglomeration; emission reduction effect; carbon peaking and carbon neutralization; spatial effect; carbon emissions trading (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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