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Will Green Finance Become a New Driving Force for Environmental Governance in The Post-Covid-19 Era: Evidence from China

Author

Listed:
  • Siyu Ren

    (Nankai University, China)

  • Mingyue Du

    (Beijing Technology and Business University, China)

Abstract

Green finance stimulus plan has become an important tool for environmental governance in the post-COVID-19 era. This paper investigates the emission reduction effect and impact mechanism of green finance (GF). The empirical results indicate that GF reduces environmental pollution. This reduction effect is attributed to a promotion in green innovation and industrial upgrading. The emission reduction effect of GF reflects the threshold characteristics. Specifically, stricter environmental regulation increases the inhibitory effect of GF on pollution.

Suggested Citation

  • Siyu Ren & Mingyue Du, 2024. "Will Green Finance Become a New Driving Force for Environmental Governance in The Post-Covid-19 Era: Evidence from China," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(1), pages 151-166, March.
    • Handle: RePEc:idn:journl:v:27:y:2024:i:1g:p:151-166
    DOI: https://doi.org/10.59091/2460-9196.2229
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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