How to achieve sustainable development: From the perspective of science and technology financial policy in China

To solve coordination between economic development and pollutant emissions, it is necessary to face the innovation problem of energy saving and emission reduction. Promoting the effective integration of tech and the financial system is an effective way to solve this problem. According to panel data for prefecture-level cities in China, this paper is based on the pilot policy of combining science and technology with finance implemented in 2011 as a quasi-natural experiment and uses the difference-in-differences (DID) method to evaluate the impact of Science and Technology Financial Policies (STFP) on the air pollutant emission, meanwhile, considering the spatial overflow effect of policy implementation. The research results show that: (1) The STFP has certain inhibitions on pollutant emissions, and this finding holds after a series of robustness tests. (2) The policy has different effects on cities that have different scale, different regions, and different government efficiency. (3) From the results of mechanism analysis, the policy mainly enhances regional pollutant emission reduction capacity through ways such as increasing regional green total factor productivity, enhancing regional science and technology levels, and promoting regional industrial structure optimization. (4) The policy shows a negative spatial spillover effect in reducing pollutant emissions.