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The Impact of Green Financial Policy on the Regional Economic Development Level and AQI—Evidence from Zhejiang Province, China

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  • Min-Xing Wang

    (School of Financial Technology, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, China
    These authors contributed equally to this work.)

  • Lufei Huang

    (School of Financial Technology, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, China)

  • Zhen-Ming Chen

    (School of Finance, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, China
    These authors contributed equally to this work.)

Abstract

To explore the impact of green financial policy on the regional economic development level and the Air Quality Index (AQI), this paper selected two pilot regions of green financial reform policy to construct a quasi-experiment in Zhejiang Province. The results show that green finance reform can reduce AQI and pass the parallel trend test and placebo test, showing strong stability. Mechanism analysis shows that green finance reform can improve environmental quality mainly by increasing urban expenditure on science and technology, the level of urban innovation, and the number of urban enterprise innovations. Then, from a more general perspective, this paper discusses the internal relationship between green finance policy, environmental pollution and its control, and enterprise development and puts forward suggestions for future green finance policy formulation and policy implementation.

Suggested Citation

  • Min-Xing Wang & Lufei Huang & Zhen-Ming Chen, 2023. "The Impact of Green Financial Policy on the Regional Economic Development Level and AQI—Evidence from Zhejiang Province, China," Sustainability, MDPI, vol. 15(5), pages 1-23, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4068-:d:1077923
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    2. Libin Feng & Zhengcheng Sun, 2023. "The Impact of Green Finance Pilot Policy on Carbon Intensity in Chinese Cities—Based on the Synthetic Control Method," Sustainability, MDPI, vol. 15(15), pages 1-21, July.

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