Research on the Impact of Green Finance on Ecological Environment Governance

Abstract

To investigate the impact of green finance on ecological environment governance, this study measures the development level of green finance in 30 Chinese provinces from 2008 to 2020. Based on existing research and theoretical analysis, an empirical test was conducted to explore the effect of green finance development on the emission of "three wastes" pollutants. The results indicate that the adoption of green finance can effectively reduce regional "three wastes" pollutant emissions, holding significant positive implications for environmental pollution control. Through transmission mechanism analysis, it is found that industrial structure upgrading effectively promotes regional environment governance, with green finance playing a pivotal role in this process. Furthermore, regional heterogeneity analysis reveals that compared to central provinces, the eastern and western provinces exhibit a more prominent performance in environmental governance through green finance. Based on these conclusions, policy recommendations are proposed, including improving the level of environmental information disclosure by financial institutions, perfecting the green finance policy system, strengthening green finance incentive mechanisms, and enhancing government supervision and management to promote pollution reduction and ecological quality improvement.