WILL GREEN FINANCE BECOME A NEW DRIVING FORCE FOR ENVIRONMENTAL GOVERNANCE IN THE POSTCOVID-19 ERA: EVIDENCE FROM CHINA

Abstract

Green finance stimulus plan has become an important tool for environmental governance in the post-COVID-19 era. This paper investigates the emission reduction effect and impact mechanism of Green Finance (GF). The empirical results indicate that GF reduces environmental pollution. This reduction effect is attributed to a promotion in green innovation and industrial upgrading. The emission reduction effect of GF reflects the threshold characteristics. Specifically, stricter environmental regulation increases the inhibitory effect of GF on pollution.