Role of green finance policy in renewable energy deployment for carbon Evidence from China

Carbon emission is not just a threat to the environment but also an economic burden. Faced with the growing pollutant emission, the purpose of financial institutions is more crucial. To address this issue, this research employs difference-in-differences to assess the role of China's green financing policy in renewable energy deployment for emission reduction. The findings demonstrate that the green finance strategy in renewable energy can reduce the general situation of emission reduction. The results show that the policy was effective in lower three contaminants, including Sulfur dioxide, Nitrogen dioxides, and PM2.5, but are inadequate in reducing Carbon monoxide, Ozone, and PM10. Besides, the control impacts of green finance policy are via local enterprises' economic activities. Compared with the financially advanced areas, the reducing emissions impacts of green financing policies in the financially undeveloped areas are greater. These results give recommendations for controlling air quality financial advantage from the standpoint of micro practice.

Automated summary

The research finds that China's green financing policy has achieved certain results in renewable energy deployment and emission reduction, especially in reducing sulfur dioxide, nitrogen dioxide, and PM2.5. However, the effectiveness in reducing carbon monoxide, ozone, and PM10 is limited. Additionally, the control impacts of the green finance policy are through the economic activities of local enterprises.