Relationship between green credit and high-quality development of green and green economy—"pull effect" or "capricorn effect"

Lingjun Guo and Wenyu Tan ()
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Lingjun Guo: Changzhou University
Wenyu Tan: Changzhou University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 10, No 76, 26449-26473

Abstract: Abstract In the pursuit of achieving the strategic objectives of "dual carbon," the green economy has emerged as an inevitable trend in China's national economic development. In an effort to effectively promote the establishment of a sustainable civilization and establish a modern green economic system, the implementation of a green financial system is regarded as a significant measure. GC (GC represents Green credit. The following statements are redundant)as a derivative form of green finance, serves as the primary channel for financing the green economy, and It is also the core force driving HQD( HQD represents high-quality development of green economy). Despite its significance, the academic literature does not provide a thorough examination of the specific effects of GC on the HQD. Building upon this foundation, the article elaborates on the internal mechanism of GC for HQD on the basis of mathematical model construction and scientifically evaluates the comprehensive index of HQD in Chinese provinces using entropy method. Introducing the SYS-GMM model, the Quantile regression model, and panel data to concentrate on the path of the role of GC in promoting the HQD, as well as regional differences. The panel threshold model and Bootstrap test method are embedded in the analysis to clarify potential threshold effects and identify corresponding transmission mechanisms. The research provides evidence that: (1) GC has a significant “pulling effect” on the HQD, and this conclusion remains valid even when considering endogeneity issues; (2) Quantile regression analysis reveals that the "pull effect" of GC is proportional to the index of HQD at the provincial level; (3) Analysis of the transmission mechanism reveals that the relationship between GC and the HQD is influenced by green innovation, which serves as a mediating factor; (4)Analysis of the threshold effect reveals that moderate environmental regulation enhances the "pull effect" of GC on the HQD. These research conclusions provide valuable guidance for developing a scientifically reasonable approach to promoting HQD at the provincial level in China.

Keywords: GC; HQD; SYS-GMM; Threshold models (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10668-023-03736-6

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