Has Green Credit Improved Ecosystem Governance Performance? A Study Based on Panel Data from 31 Provinces in China

Abstract

Pollution prevention enhancement and ecological civilization construction serve as the keys to optimizing economic structure and promoting green sustainable development in China. Employing the balanced panel data of 31 provinces from 2011 to 2020, this study empirically examines the impacts of green credit on ecosystem governance performance. The results demonstrate that green credit can significantly contribute to the improvement of ecosystem governance performance in each province. Additionally, regional heterogeneity in the impacts of green credit on the performance of ecological environmental governance, which passed the significance test in economically developed and underdeveloped regions, eastern and non-eastern regions and resource-based and non-resource-based regions, respectively, was further confirmed. Hence, we suggest further improving the green credit policy system, continuously stimulating green financial innovation, releasing the right signals for green development and boosting the balanced development of green credit in all regions.