Green finance, economic growth, and carbon emissions: a PVAR analysis

The study examines the relationship between green finance development, carbon emission intensity, and economic development in China's 30 provinces. The entropy approach is used to calculate the green finance development index, and a panel vector autoregressive model is established using this index along with economic development and carbon emission intensity. The study finds that green finance can promote economic growth and help achieve emission reduction objectives, while increasing carbon emissions can also promote economic growth. The study also highlights regional differences, with the economic growth of the eastern and central regions negatively correlated with carbon emissions after surpassing the inflection point of the environmental Kuznets curve. Additionally, the study suggests that there is still room for growth in green finance in the western region. The findings have important policy implications for China in developing targeted development strategies.