The Impact of Green Finance on Carbon Emissions Based on Fixed Effects Model

During the 14th Five Year Plan period, China will focus on carbon reduction. Green finance has become the main driving force for energy conservation. To explore how green finance affects carbon emissions, a fixed effects model is used for empirical analysis, with the Green Finance Development (GFD)...

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Main Authors: Wen Tu, Qing Ma, Xin Zhao, Wen Liu
Format: Article
Language:English
Published: IEEE 2025-01-01
Series:IEEE Access
Subjects:
Online Access:https://ieeexplore.ieee.org/document/10854431/
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author Wen Tu
Qing Ma
Xin Zhao
Wen Liu
author_facet Wen Tu
Qing Ma
Xin Zhao
Wen Liu
author_sort Wen Tu
collection DOAJ
description During the 14th Five Year Plan period, China will focus on carbon reduction. Green finance has become the main driving force for energy conservation. To explore how green finance affects carbon emissions, a fixed effects model is used for empirical analysis, with the Green Finance Development (GFD) as the explanatory variable, total carbon emissions as the dependent variable, and per capita GDP, technological innovation, industrial structure, environmental protection intensity, and foreign investment level as control variables. Two hypotheses are verified. Firstly, industrial carbon emissions can be significantly declined by improving the GFD. Secondly, the heterogeneity existed in the impact of GFD on industrial carbon emissions across various regions and industries. In the bidirectional fixed effects model regression analysis, the GFD was -0.923, the coefficient of industrial structure optimization was -0.563, and the coefficient of environmental protection was -0.896, all of which were adversely associated with total industrial carbon emissions. In heterogeneity analysis, the GFD had the greatest impact on the eastern region, succeeded by the eastern region, and finally the western region. The GFD is adversely associated with the total industrial carbon emissions, and there is heterogeneity between these two in different regions and industries, providing important empirical evidence for policy makers.
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spelling doaj-art-5642a39b490649caba93a3f5ffa7cb932025-08-20T03:01:11ZengIEEEIEEE Access2169-35362025-01-0113277832779310.1109/ACCESS.2025.353424010854431The Impact of Green Finance on Carbon Emissions Based on Fixed Effects ModelWen Tu0https://orcid.org/0009-0003-1453-1232Qing Ma1Xin Zhao2Wen Liu3https://orcid.org/0009-0002-5379-3182Department of Public Education, Moutai Institute, Zunyi, ChinaDepartment of Business Administration, Moutai Institute, Zunyi, ChinaDepartment of Public Education, Moutai Institute, Zunyi, ChinaDepartment of Business Administration, Moutai Institute, Zunyi, ChinaDuring the 14th Five Year Plan period, China will focus on carbon reduction. Green finance has become the main driving force for energy conservation. To explore how green finance affects carbon emissions, a fixed effects model is used for empirical analysis, with the Green Finance Development (GFD) as the explanatory variable, total carbon emissions as the dependent variable, and per capita GDP, technological innovation, industrial structure, environmental protection intensity, and foreign investment level as control variables. Two hypotheses are verified. Firstly, industrial carbon emissions can be significantly declined by improving the GFD. Secondly, the heterogeneity existed in the impact of GFD on industrial carbon emissions across various regions and industries. In the bidirectional fixed effects model regression analysis, the GFD was -0.923, the coefficient of industrial structure optimization was -0.563, and the coefficient of environmental protection was -0.896, all of which were adversely associated with total industrial carbon emissions. In heterogeneity analysis, the GFD had the greatest impact on the eastern region, succeeded by the eastern region, and finally the western region. The GFD is adversely associated with the total industrial carbon emissions, and there is heterogeneity between these two in different regions and industries, providing important empirical evidence for policy makers.https://ieeexplore.ieee.org/document/10854431/Green financecarbon emissionsfixed effects modelheterogeneitytechnological innovation
spellingShingle Wen Tu
Qing Ma
Xin Zhao
Wen Liu
The Impact of Green Finance on Carbon Emissions Based on Fixed Effects Model
IEEE Access
Green finance
carbon emissions
fixed effects model
heterogeneity
technological innovation
title The Impact of Green Finance on Carbon Emissions Based on Fixed Effects Model
title_full The Impact of Green Finance on Carbon Emissions Based on Fixed Effects Model
title_fullStr The Impact of Green Finance on Carbon Emissions Based on Fixed Effects Model
title_full_unstemmed The Impact of Green Finance on Carbon Emissions Based on Fixed Effects Model
title_short The Impact of Green Finance on Carbon Emissions Based on Fixed Effects Model
title_sort impact of green finance on carbon emissions based on fixed effects model
topic Green finance
carbon emissions
fixed effects model
heterogeneity
technological innovation
url https://ieeexplore.ieee.org/document/10854431/
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