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ORIGINAL RESEARCH
Spatial Spillover Effects of Financial
Development on Carbon Emissions: Evidence
from Urban Agglomerations in China
1
School of Management, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia
2
School of Economics, Jinan University, Guangzhou 510632, China
Submission date: 2024-03-03
Final revision date: 2024-04-25
Acceptance date: 2024-05-17
Online publication date: 2024-09-04
Publication date: 2025-01-28
Corresponding author
Pol. J. Environ. Stud. 2025;34(3):3407-3423
KEYWORDS
TOPICS
ABSTRACT
China’s “dual carbon” agenda shows its proactive approach to global carbon reduction.
This study uses a spatial panel model to examine financial development and carbon emissions in China.
It also examines how financial development thresholds affect carbon emissions, using research and
development intensity and technical market development level as key variables. The results show that:
(1) Finance in China is concentrated in the Circum-Bohai Sea and eastern coastal regions, with lower
levels in the central and western regions. China’s high-carbon zones are mostly in the northwest and
northeast. However, low-emission areas are mainly in the south. (2) Financial development increases
local carbon emissions and decreases neighboring carbon emissions. However, it still hinders carbon
emissions in the region. (3) Financial development promotes more carbon emissions in the northwest
than in other regions, possibly due to additional variables. (4) Financial development initially increases
regional carbon emissions when R&D intensity is the threshold variable, but this effect fades. When
technological market development is the threshold variable, financial development’s impact on carbon
emissions has gone from insignificant to major to insignificant promotion.
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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