Green finance, green technology innovation, and carbon emission reduction

Green finance, as a financial innovation tool that integrates finance and environmental protection, has become a crucial means of achieving carbon emission reduction. Based on panel data from 334 prefecture-level cities in China from 2000 to 2021, a two-way fixed effects model was constructed to emp...

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Main Authors: Xing Xiong, Wenhong He, Sirong Chen, Yuhang Wu
Format: Article
Language:English
Published: IOP Publishing 2025-01-01
Series:Environmental Research Communications
Subjects:
Online Access:https://doi.org/10.1088/2515-7620/adc905
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author Xing Xiong
Wenhong He
Sirong Chen
Yuhang Wu
author_facet Xing Xiong
Wenhong He
Sirong Chen
Yuhang Wu
author_sort Xing Xiong
collection DOAJ
description Green finance, as a financial innovation tool that integrates finance and environmental protection, has become a crucial means of achieving carbon emission reduction. Based on panel data from 334 prefecture-level cities in China from 2000 to 2021, a two-way fixed effects model was constructed to empirically analyze the impact and mechanism of green finance on carbon emission reduction. The main findings are as follows: First, green finance significantly reduces carbon emission intensity; second, green technology innovation plays a mediating role in the impact of green finance on carbon emission intensity; third, green finance has the strongest effect in reducing direct greenhouse gas emissions; fourth, green investment and green bonds have the most substantial effect on reducing carbon emissions, while the direct effect of green equity on reducing carbon emission intensity is not significant. Therefore, to enhance the level of green finance, it is necessary to accelerate the development of green finance and actively build a synergistic development system between green finance and related technological innovations.
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publishDate 2025-01-01
publisher IOP Publishing
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series Environmental Research Communications
spelling doaj-art-b84bc9c5f945483b956d327dce4bf8a62025-08-20T02:17:04ZengIOP PublishingEnvironmental Research Communications2515-76202025-01-017404501810.1088/2515-7620/adc905Green finance, green technology innovation, and carbon emission reductionXing Xiong0https://orcid.org/0000-0002-9173-2527Wenhong He1Sirong Chen2Yuhang Wu3Institute For Chengdu-Chongging Economic Zone Development, Chongqing Technology and Business University , Chongqing, People’s Republic of China; School of Economics, Chongqing Technology and Business University , Chongqing, People’s Republic of China; Center for Southeast Asian Studies, Chongqing Technology and Business University , Chongqing, People’s Republic of ChinaInstitute For Chengdu-Chongging Economic Zone Development, Chongqing Technology and Business University , Chongqing, People’s Republic of ChinaInstitute For Chengdu-Chongging Economic Zone Development, Chongqing Technology and Business University , Chongqing, People’s Republic of ChinaInstitute For Chengdu-Chongging Economic Zone Development, Chongqing Technology and Business University , Chongqing, People’s Republic of ChinaGreen finance, as a financial innovation tool that integrates finance and environmental protection, has become a crucial means of achieving carbon emission reduction. Based on panel data from 334 prefecture-level cities in China from 2000 to 2021, a two-way fixed effects model was constructed to empirically analyze the impact and mechanism of green finance on carbon emission reduction. The main findings are as follows: First, green finance significantly reduces carbon emission intensity; second, green technology innovation plays a mediating role in the impact of green finance on carbon emission intensity; third, green finance has the strongest effect in reducing direct greenhouse gas emissions; fourth, green investment and green bonds have the most substantial effect on reducing carbon emissions, while the direct effect of green equity on reducing carbon emission intensity is not significant. Therefore, to enhance the level of green finance, it is necessary to accelerate the development of green finance and actively build a synergistic development system between green finance and related technological innovations.https://doi.org/10.1088/2515-7620/adc905green financegreen technology innovationcarbon emission intensity
spellingShingle Xing Xiong
Wenhong He
Sirong Chen
Yuhang Wu
Green finance, green technology innovation, and carbon emission reduction
Environmental Research Communications
green finance
green technology innovation
carbon emission intensity
title Green finance, green technology innovation, and carbon emission reduction
title_full Green finance, green technology innovation, and carbon emission reduction
title_fullStr Green finance, green technology innovation, and carbon emission reduction
title_full_unstemmed Green finance, green technology innovation, and carbon emission reduction
title_short Green finance, green technology innovation, and carbon emission reduction
title_sort green finance green technology innovation and carbon emission reduction
topic green finance
green technology innovation
carbon emission intensity
url https://doi.org/10.1088/2515-7620/adc905
work_keys_str_mv AT xingxiong greenfinancegreentechnologyinnovationandcarbonemissionreduction
AT wenhonghe greenfinancegreentechnologyinnovationandcarbonemissionreduction
AT sirongchen greenfinancegreentechnologyinnovationandcarbonemissionreduction
AT yuhangwu greenfinancegreentechnologyinnovationandcarbonemissionreduction