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A Study of the Spatial Mechanism of Financial Agglomeration Affecting Green Low-Carbon Development: Evidence from China

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  • Tianshu Quan

    (School of Economics and Management, Nanjing Forestry University, Nanjing 210037, China)

  • Tianli Quan

    (Business School, Jiangsu Normal University, Xuzhou 221116, China)

Abstract

China has stepped into the assertive stage of transforming the economic development mode and economic growth momentum, while green and low-carbon development is undoubtedly the way to promote high-quality economic development in the new period. As the core of modern economic growth, the spatial scale concentration of finance plays a crucial role in the development of economic transformation. In this paper, the SBM-GML production index method was used to measure the green low-carbon development level of 30 provinces in China from 2003 to 2019. It also empirically examines the impact and effect of financial agglomeration on green low-carbon development from a two-dimensional perspective of time and space using a systematic generalized matrix and a spatial dynamic panel model. At the same time, the spatial spillover effects of financial agglomeration were measured using a partial differential approach combined with the mediating effect model to reveal the path of financial agglomeration on green low-carbon development. It was found that, firstly, financial agglomeration achieves green low-carbon, and high-quality development through economic growth, industrial structure upgrading, and technological innovation improvement. It also achieves the enhancement of green, low-carbon development through the dual improvement of green technological progress and green technological efficiency. Second, financial agglomeration can enhance the green low-carbon development of neighboring regions; the positive effect of financial agglomeration has a significant positive spatial spillover. Third, the relationship between financial agglomeration and green low-carbon development shows a significant inverted U-shaped relationship, i.e., short-term promotion and long-term inhibition; at present, financial agglomeration, as a whole, has not crossed the critical value but still has a promotional effect on green low-carbon development. Finally, this article points out that in order to effectively promote green, low-carbon development, China needs to continuously promote the formation and optimization of financial agglomeration and make concerted efforts in economic growth, industrial structure upgrading, and technological progress.

Suggested Citation

  • Tianshu Quan & Tianli Quan, 2023. "A Study of the Spatial Mechanism of Financial Agglomeration Affecting Green Low-Carbon Development: Evidence from China," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:965-:d:1025589
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    1. Huwei Wen & Yutong Liu, 2023. "Can Fintech Lead to the Collaborative Reduction in Pollution Discharges and Carbon Emissions?," Sustainability, MDPI, vol. 15(15), pages 1-19, July.
    2. Shujuan Ding & Zhenyu Fan, 2024. "Spatiotemporal Evolution and Obstacle Factor Analysis of Coupling Coordination Between Economic Resilience and Green, Low-Carbon Development in China," Sustainability, MDPI, vol. 16(24), pages 1-34, December.

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