Impact of Green Finance on Carbon Emissions Based on a Two-Stage LMDI Decomposition Method

Zirong Lin, Hui Wang (), Wei Li and Min Chen
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Zirong Lin: Taiwan Research Institute, Xiamen University, Xiamen 361000, China
Hui Wang: Taiwan Research Institute, Xiamen University, Xiamen 361000, China
Wei Li: School of Finance and Accounting, Anhui Xinhua University, Hefei 230088, China
Min Chen: Taiwan Research Institute, Xiamen University, Xiamen 361000, China

Sustainability, 2023, vol. 15, issue 17, 1-28

Abstract: As the “double carbon” goal gains traction worldwide, achieving a balance between economic growth and environmental sustainability has become a focal point for researchers. Green finance, as a specialized financial service, offers a new approach to sustainable development. This study analyzed carbon emission sources in 25 Chinese provinces between 2007 and 2020, dividing them into energy structure, economic development, energy efficiency, and industrial structure, using a two-stage LMDI method. It then examines the linear and non-linear relationships between green finance and carbon emissions using spatial measurement methods. The findings indicate that green finance is an effective way to reduce carbon emissions, primarily through its impact on energy structure, energy efficiency, and industrial structure. There are significant non-linear relationships between green finance and the factors affecting carbon emissions, with spatial effects playing a significant role in carbon emissions influenced by energy structure, economic development, energy efficiency, and industrial structure.

Keywords: green finance; carbon emissions; spatial metering; two-stage LMDI (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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