How does green finance policy improve urban ecological resilience? Evidence from a quasi-natural experiment on green credit interest subsidies

Urban ecological resilience reflects the capacity of a city's natural and social systems to absorb disturbances, sustain fundamental structure and functions in the face of external shocks and pressures, and evolve into a more sustainable state through adaptation and learning. Enhancing urban ecological resilience is crucial for green development and sustainable economic growth, and it relies on the targeted implementation and robust support of green financial policies. This study employs the TOPSIS entropy method combined with a DID model to examine the impact of the green credit interest subsidy policy (GCISP) on urban ecological resilience (UER) from 2003 to 2023. Theoretical analysis and empirical findings indicate that GCISPs predominantly improves UER, which is mediated by reduction in regional energy intensity and decrease in industrial agglomeration. The impact of GCISPs on UER is significant in eastern, western, and northeastern China but insignificant in the central region. Moreover, the policy has a notable effect on UER in nonresource-based cities but not in resource-based cities. Notably, local governments should promote targeted green finance policies based on regional endowments, focus on traditional industries’ energy-efficient upgrades development of new energy sources to reduce energy intensity, and ensure strategic funding support for key aspects of green industrial transformation.