Exploring the Relationship Between Green Finance and Carbon Productivity: The Mediating Role of Technological Progress Bias

Dianwu Wang, Zina Yu (), Haiying Liu, Xianzhe Cai and Zhiqun Zhang
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Dianwu Wang: School of Economics and Management, Changchun University of Technology, Changchun 130012, China
Zina Yu: School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100876, China
Haiying Liu: School of Economics and Management, Changchun University of Technology, Changchun 130012, China
Xianzhe Cai: School of Maritime Economics and Management, Dalian Maritime University, Dalian 116026, China
Zhiqun Zhang: School of Maritime Economics and Management, Dalian Maritime University, Dalian 116026, China

Sustainability, 2025, vol. 17, issue 19, 1-18

Abstract: In the context of global climate change, achieving a green and low-carbon economic transition is essential for sustainable development. This study constructs a model using data from 30 provinces collected between 2006 and 2020 to investigate how green finance influences China’s carbon productivity and the transmission mechanism mediated by factor-biased technological progress. The findings reveal the following: (1) The Moran’s index test for carbon productivity across Chinese provinces demonstrates significant spatial clustering. (2) Green finance exhibits substantial spillover effects on carbon productivity in surrounding regions. (3) Capital-biased and energy-biased technological progress significantly mediate the relationship between green finance and carbon productivity, indicating that green finance enhances carbon productivity by optimizing the allocation of capital, labor, and energy factors. (4) Regional heterogeneity analysis indicates that capital-technology-biased and energy-factor-technology-biased approaches can significantly enhance carbon productivity in Central and Northeastern China. Notably, energy-factor innovation delivers far greater environmental efficiency gains in these regions than in Eastern and Western China.

Keywords: green finance; carbon productivity; technological progress bias; spatial Durbin model; intermediary effect model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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