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Research on the Environmental Effect of Green Finance Policy Based on the Analysis of Pilot Zones for Green Finance Reform and Innovations

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  • Haifeng Huang

    (School of Economics and Management, Beijing University of Technology, Beijing 100020, China)

  • Jing Zhang

    (School of Economics and Management, Beijing University of Technology, Beijing 100020, China)

Abstract

In this study, taking the pilot zones for green finance reform and innovations set up in 2017 as the objects, a quasi-natural experiment is conducted to assess the environmental effects of green finance policy using the difference-in-difference propensity score matching (PSM-DID) method based on the panel data in 30 provincial-level administrative regions from 2011 to 2019. In addition, further efforts are made to investigate the differences of green financial policies in environmental effect. According to the research findings, the set-up of green finance pilot zones can reduce the environmental pollution, and green finance policy is conductive to environmental enhancement. Meanwhile, a partial mediating effect exists between a region’s innovation capability and industrial structure. On the whole, green finance policy plays the most significant role in improving the eastern region’s environmental pollution, followed by the central region, but barely enhances the environment in the western region. To sum up, the more serious the environmental pollution is, the better the effect of green finance policy.

Suggested Citation

  • Haifeng Huang & Jing Zhang, 2021. "Research on the Environmental Effect of Green Finance Policy Based on the Analysis of Pilot Zones for Green Finance Reform and Innovations," Sustainability, MDPI, vol. 13(7), pages 1-14, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:7:p:3754-:d:525478
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    References listed on IDEAS

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    Cited by:

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    14. Abdulrasheed Zakari & Irfan Khan, 2022. "The Introduction of Green Finance - A Curse or a Benefit to Environmental Sustainability?," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 3(Early Vie), pages 1-5.
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    17. Meili Tang & Jia’ni Ding & Haojia Kong & Brandon J. Bethel & Decai Tang, 2022. "Influence of Green Finance on Ecological Environment Quality in Yangtze River Delta," IJERPH, MDPI, vol. 19(17), pages 1-12, August.
    18. Wei, Xuecheng & Bai, Yang, 2023. "The role of green financing and natural resources towards sustainable environment: A comparative study of US-China," Resources Policy, Elsevier, vol. 85(PA).
    19. Irfan, Muhammad & Razzaq, Asif & Sharif, Arshian & Yang, Xiaodong, 2022. "Influence mechanism between green finance and green innovation: Exploring regional policy intervention effects in China," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
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    22. Shi, Jinyan & Yu, Conghui & Li, Yanxi & Wang, Tianhe, 2022. "Does green financial policy affect debt-financing cost of heavy-polluting enterprises? An empirical evidence based on Chinese pilot zones for green finance reform and innovations," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    23. Decai Tang & Hui Zhong & Jingyi Zhang & Yongguang Dai & Valentina Boamah, 2022. "The Effect of Green Finance on the Ecological and Environmental Quality of the Yangtze River Economic Belt," IJERPH, MDPI, vol. 19(19), pages 1-17, September.
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