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Environmental science and pollution research international
Jan, 2023;30 (5): 12041-12058.

Can green finance promote urban green development? Evidence from green finance reform and innovation pilot zone in China.

Hongfeng Zhang, Yixiang Wang, Rui Li, Hongyun Si, Wei Liu
Author Information
  1. Hongfeng Zhang: School of Public Administration and Policy, Shandong University of Finance and Economics, No. 7366, East Erhuan Road, Jinan, 250014, China.
  2. Yixiang Wang: School of Economics, Shandong University of Finance and Economics, Jinan, 250014, China.
  3. Rui Li: School of Public Administration and Policy, Shandong University of Finance and Economics, No. 7366, East Erhuan Road, Jinan, 250014, China.
  4. Hongyun Si: School of Public Administration and Policy, Shandong University of Finance and Economics, No. 7366, East Erhuan Road, Jinan, 250014, China. sihongyun@tongji.edu.cn.
  5. Wei Liu: School of Business Administration, Shandong University of Finance and Economics, Jinan, 250014, China.
PMID: 36103065 DOI: 10.1007/s11356-022-22886-0

Abstract

This study aims to evaluate the effect of the green finance reform and innovation pilot zone (GFPZ) policy on urban green development. Based on city-level panel data in China from 2012 to 2019, a difference-in-differences model was employed to examine the effects of China's GFPZ policy on the city's green total factor productivity (GTFP). Results show that (1) the GFPZ policy has promoted the GTFP of pilot cities, a conclusion that still holds after performing multiple robustness tests. (2) Compared to non-pilot cities, the GFPZ policy can increase urban GTFP by promoting urban green innovation and reducing urban energy intensity. (3) The GFPZ policy had a more significant impact on mega cities and resource-based cities than on medium and big-sized cities and non-resource-based cities. This study provides new empirical evidence on how green finance influences urban green development and offers China's experience to policymakers worldwide to develop green finance in top-level policy design and practice.

Keywords

Difference-in-differences Green development Green finance Green total factor productivity Heterogeneous effects Pilot policy

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MeSH Term

Sustainable Development
China
Cities
Policy
Economic Development
Journal Article

Word Cloud

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