Effect of green finance reform and innovation pilot zone on improving environmental pollution: an empirical evidence from Chinese cities.

Under the strategic deployment of dual carbon goals, China has entered the stage of high-quality development of low-carbon economic transformation. Green finance is an important tool to provide financing support for the development of green low-carbon projects and prevent environmental and climate financial risks. Whether and how it can help the implementation of the dual carbon goals is worth pondering and studying. Based on this background, this study considers the green finance reform and innovation pilot policy zone jointly issued by the Central People's Bank of China, National Development, and Reform Commission in 2017 as a natural experiment. Based on the panel data of 288 cities nationwide from 2010 to 2019, the effect of emission reduction is estimated using the PSM-DID method. The following conclusions are drawn: (1) The green finance policy has effectively improved the city's environmental quality, and the pilot effect of green finance has a certain lag on SO emissions and industrial smoke (dust) emissions; (2) the mechanism inspection shows that the policy mechanism has promoted the technological innovation level, sewage treatment capacity, and garbage harmless treatment capacity of the pilot area to a certain extent; and (3) the impact of green finance policy on environmental quality has regional and industrial characteristics heterogeneity. The green finance pilot policy in eastern and central regions will inhibit SO emissions, but the emission reduction effect in western regions is not significant; The implementation of the pilot policy of the green financial reform and innovation pilot zone has significantly reduced the sulfur dioxide emissions of the old industrial base cities, but the effect of the policy on non-old industrial bases is not obvious. The research conclusion has important enlightenment significance for further improving the construction of financial system, promoting the green transformation of regional industry, and improving the quality of urban environment.