Author(s)

Wang Xiangyu ¹

Affiliation(s)

¹ School of Business, East China University of Political Science and Law, Shanghai, China

Corresponding Author

Wang Xiangyu

ABSTRACT

According to the phased strategic arrangement of building a socialist modern country in an all-round way, the main goal of economic and ecological development during the "14th Five-Year Plan" period is to build a beautiful China, achieve a fundamental improvement in the ecological environment, and stabilize the carbon emissions after reaching the peak. Green credit, as a key policy tool for China to deal with the carbon emission problem and achieve the goal of "double carbon", is also an important financial tool to help the development of low-carbon economy. It is of great practical significance to investigate the implementation effect of this policy strictly and scientifically, and to evaluate the impact of green credit on China's carbon emissions and its mechanism. Based on this, this paper uses the panel data of 29 provinces, autonomous regions and municipalities directly under the Central Government of China from 2005 to 2020 to construct a double fixed effect model to answer the above questions. The results show that: ① Green credit policy can effectively curb carbon dioxide emissions, and carbon emissions decrease with the increase of green credit scale, and the implementation effect of the policy is remarkable. ② The upgrading of industrial structure plays a positive regulatory role in the emission reduction effect of green credit, that is, the higher the industrial structure, the stronger the effect of green credit in restraining carbon emissions. ③ Heterogeneity analysis shows that the emission reduction effect of green credit is more significant in eastern and western regions and provinces with higher degree of marketization. By virtue of its natural geographical advantages, the eastern region has continuously innovated green technologies and accumulated green financial capital, which has better promoted the implementation of green credit policy. With the support of national policies, the western region has actively promoted the implementation of green credit policy and achieved remarkable carbon emission reduction results. The central region, where many industrial provinces gather, has a weak emission reduction effect, and the effect of green credit policy is not significant. In addition, the provinces with higher degree of marketization have larger market scale and richer types of financial instruments, and the implementation effect of green credit is better. The conclusion of this paper provides a new perspective for the emission reduction effect of green credit, and provides the latest and powerful empirical evidence for green credit to help achieve the goal of "double carbon".

KEYWORDS

Green credit, Carbon dioxide emissions, Upgrading of an industrial structure

CITE THIS PAPER

Wang Xiangyu, Research on the Impact of Green Credit Development on Carbon Emissions under the Target of "Double Carbon". Financial Engineering and Risk Management (2024) Vol. 7: 131-141. DOI: http://dx.doi.org/10.23977/ferm.2024.070317.

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