Research on the Impact of Green Finance on Regional Low-carbon Transformation: An Analysis of the Mediating Effect Based on Green Innovation

Abstract

Under the background of "double carbon" goal, green finance is an important institutional arrangement to promote green and low-carbon economic transformation. Based on China's provincial panel data from 2006 to 2023, this paper constructs a comprehensive evaluation index of green finance, and uses panel fixed effect model, mediating effect model and instrumental variable method to test the impact of green finance on regional carbon emission intensity. The results show that the development of green finance significantly reduces regional carbon emission intensity, and the conclusion is still valid after robustness test. Green finance reduces carbon emission intensity by increasing the output of green patents, and green innovation plays a complete intermediary role; Heterogeneity analysis shows that the promotion effect of green finance is more obvious in areas with low economic level and after the low-carbon policy node in 2015. This paper provides empirical evidence for improving the green finance policy system and promoting regional differentiated low-carbon development.