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ORIGINAL RESEARCH
Impact of Green Finance on Carbon
Emissions: Empirical Analysis Based
on Chinese Provincial Panel Data
1
School of Management, Universiti Sains Malaysia, George Town 11800, Malaysia
2
School of Economics, Jinan University, Guangzhou 510632, China
Submission date: 2024-06-26
Final revision date: 2024-08-11
Acceptance date: 2024-08-23
Online publication date: 2024-10-21
Publication date: 2025-11-04
Corresponding author
Pol. J. Environ. Stud. 2025;34(6):6827-6841
KEYWORDS
TOPICS
ABSTRACT
Reducing carbon emissions is widely recognized as one of our nation's top priorities. At the national
level, green financing has grown and received a lot of support. Using panel data from 30 towns and
provinces in China between 2011 and 2021, this study mainly examines the effect of green money on
carbon emissions. It delves into the processes by which it does so. Here are the study's findings: Results
showing that green money substantially lowers carbon emissions hold up in multiple robustness tests.
Secondly, by looking at the mechanics of intermediary effects, we can see that green financing might
lower carbon emissions through, for example, technological innovation and better industrial structure.
In conclusion, the heterogeneity analysis reveals that green financing's impact on carbon emissions
varies by regional development level, with a more substantial effect observed in the western and eastern
regions. Considering these results, the authors of this study suggest implementing policies tailored to
individual regions and developing a diverse green finance system to promote the efficient reduction of
carbon emissions.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
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