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Scientific Article details

Title How does green finance affect the low-carbon economy? Capital allocation, green technology innovation and industry structure perspectives
ID_Doc 30341
Authors Zhu, Y; Zhang, JT; Duan, CQ
Title How does green finance affect the low-carbon economy? Capital allocation, green technology innovation and industry structure perspectives
Year 2022
Published
DOI 10.1080/1331677X.2022.2110138
Abstract The development of green finance and social low-carbon transformation is an essential concern for academia and industry. Based on Chinese provincial panel data spanning the period 2005-2019, we introduce the Cobb-Douglas production function and spatial Durbin and dynamic panel threshold models to deeply analyse the impact of green finance on the low-carbon economy. The mechanism test demonstrates that the scale, technique, and structural effects of green finance play a significant role in the low-carbon economy: they correct capital mismatch, promote green technology innovation, and optimise industrial structure. Meanwhile, green finance not only promotes the local low-carbon economy construction process, but also generates spatial spillover effects on neighbouring regions; however, there is regional heterogeneity in the impact of the transmission mechanism. Furthermore, only when capital mismatch is severe, and the low-end industrial structure poor is the positive impact of green finance on the low-carbon economy highlighted based on scale and structural effects; the ability of green finance to contribute to the low-carbon economy through the technique effect has been more stable and significant. This emphasises that green technology innovation is key to supporting low-carbon development in the long run.
Author Keywords Green finance; low-carbon economy; green technology innovation; spatial effect decomposition; dynamic threshold model
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Social Science Citation Index (SSCI)
EID WOS:000841152600001
WoS Category Economics
Research Area Business & Economics
PDF https://doi.org/10.1080/1331677x.2022.2110138
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