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Academic Journal of Business & Management, 2023, 5(25); doi: 10.25236/AJBM.2023.052502.

Analysis of the Influence Mechanism and Emission Reduction Pathway of Green Finance in Suppressing Carbon Intensity


Xia Yueming, Wei Rongrong

Corresponding Author:
Wei Rongrong

School of Digital Economy and Management, Wuxi University, Wuxi, China


Green finance and green technology innovation can play a great potential in helping to achieve the “dual-carbon” target. Based on the panel data of 30 provinces in China from 2010 to 2019, the direct effect of green finance in suppressing carbon intensity is first assessed by using the benchmark regression model. The indirect effect of green technological innovation in suppressing carbon intensity is explored by using the mediated effect model, and then the regional and temporal heterogeneity of green finance and green technological innovation is assessed by grouping. Finally, the emission reduction space of each province is assessed by combining the formula of the carbon emission reduction rate of each province with the marginal emission reduction cost. The study found that: (1) green technology innovation has an indirect inhibitory effect on carbon intensity of 15.865%, and there is a significant inhibitory effect of the joint effect of green finance and green technology innovation; (2) the regional analysis reveals that there is a significant inhibitory effect of green technology innovation on carbon intensity in the east and west, and green finance promotes green technology innovation in the east. The analysis of the time period shows that with the continuous development of green finance, there is a significant increase in the direct suppression of carbon intensity by green finance and the joint suppression of carbon intensity by green technological innovation and green finance. (3) The analysis of emission reduction rate and marginal emission reduction cost shows that the higher the development index of green finance is, the smaller the space for carbon emission reduction is, the higher the cost and the more difficult it is.


Green finance; Carbon emission reduction; Emission reduction efficiency; Marginal emission reduction cost

Cite This Paper

Xia Yueming, Wei Rongrong. Analysis of the Influence Mechanism and Emission Reduction Pathway of Green Finance in Suppressing Carbon Intensity. Academic Journal of Business & Management (2023) Vol. 5, Issue 25: 10-20. https://doi.org/10.25236/AJBM.2023.052502.


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