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Green finance and micro-zone level carbon emissions

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  • Lu, Peng
  • Wang, Ziwei
  • Liu, Yibo

Abstract

We examine the impact of green finance on carbon emissions across urban, suburban, and rural zones via the geographic information system. We investigate that green finance only reduces carbon emissions in urban centers, with its effect varying across degrees of urbanization classifications (DUCs). Considering residual correlation among DUCs, we reveal that green finance facilitates transferring carbon emissions from urban to suburban zones. With the spatial weight matrix for emissions and the IV-GMM approach, we demonstrate that carbon emissions display spatial spillover effects within a city. Green finance may contribute to the relocation of emissions from urban centers to suburban zones.

Suggested Citation

  • Lu, Peng & Wang, Ziwei & Liu, Yibo, 2025. "Green finance and micro-zone level carbon emissions," Finance Research Letters, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005252
    DOI: 10.1016/j.frl.2025.107262
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