Spatial spillover effect of green finance on economic development, environmental pollution, and clean energy production across China

Although the extensive development model carries China's economy at the forefront of the world, it has brought great environmental pollution problems. The Chinese government hopes to control environmental pollution through green finance and achieve high-quality economic development. Based on the panel data of 30 provinces and cities in China from 2009 to 2019, this paper examines the impact of green finance (GF) on China's high-quality economic development (EQD), environmental pollution (EP), and clean energy production (CEP). In order to study the spatial impact of GF, we put spatial geographic factors into the analysis category, and use the spatial Durbin model to empirically examine the spatial effect of GF on EQD, EP, and CEP. It is found that GF can promote EQD and curb EP in China. However, GF also weakens China's CEP.

Automated summary

Although the extensive development model has propelled China's economy to the forefront, it has also resulted in serious environmental pollution. The Chinese government aims to control environmental pollution and achieve high-quality economic development through green finance. The study finds that green finance can promote high-quality economic development and curb environmental pollution in China, but it also weakens clean energy production.