The impact of China's green finance policy on pollution control: A quantitative analysis of policy texts

In recent years, China has successively introduced green finance policies with continuously strengthened support, and the policy effects have been widely concerned. This paper constructs a theoretical analysis model by incorporating environmental resources into the Cobb-Douglas production function, and deduces that under the local equilibrium state, green finance policies contribute to reducing the pollution intensity of enterprise emissions. In the empirical examination section, this paper establishes a green finance policy intensity index using text analysis, and conducts empirical analysis based on provincial panel data from 2009 to 2019. The study finds that green finance policies help reduce the intensity of industrial pollution emissions, and there exists a synergistic effect between green finance policies and environmental regulations. Further examination reveals that in regions with higher levels of financial development, the pollution control effect of green finance policies is better, and the synergistic effect between green finance policies and environmental regulations is also stronger. Robustness tests also support the above conclusions. Based on this, the green finance policies implemented by the Chinese government have achieved good environmental governance effects and should continue to be implemented and improved. This also provides a model choice for other countries to explore pollution control methods.