Green finance policy and regional air pollution control: a two-wheel drive by government departments and financial institutions
Unlike existing studies that concentrate on haze pollution at the provincial and city levels in China, this study utilizes data from 1762 counties from 2009 to 2020. Using a multi-temporal difference-in-differences method, the study investigates the impact of green finance reform and innovation pilo...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Journal of Applied Economics |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/15140326.2025.2460151 |
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| author | Xinkuo Xu Zenglu Song Jinjing Lu |
| author_facet | Xinkuo Xu Zenglu Song Jinjing Lu |
| author_sort | Xinkuo Xu |
| collection | DOAJ |
| description | Unlike existing studies that concentrate on haze pollution at the provincial and city levels in China, this study utilizes data from 1762 counties from 2009 to 2020. Using a multi-temporal difference-in-differences method, the study investigates the impact of green finance reform and innovation pilot zones (GFRIs) on county haze pollution (CHP) through the synergy of governmental departments and financial institutions. The findings indicate that GFRIs can reduce CHP, and this effect is realized by promoting green innovation, strengthening environmental penalties, and alleviating fiscal pressure. Heterogeneity analysis demonstrates that the inhibitory effect of GFRIs on CHP is more pronounced in counties with lower levels of financial development, higher levels of industrial development, poorer and in the central and western regions. The GFRIs achieve a win-win situation for economic growth and pollution reduction. The GFRIs should leverage the synergy of “active” government and “effective” market, establishing a long-term mechanism for CHP control. |
| format | Article |
| id | doaj-art-064deaa87968459e840ba0fff4cd7f97 |
| institution | Kabale University |
| issn | 1514-0326 1667-6726 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Journal of Applied Economics |
| spelling | doaj-art-064deaa87968459e840ba0fff4cd7f972025-02-03T08:42:26ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262025-12-0128110.1080/15140326.2025.2460151Green finance policy and regional air pollution control: a two-wheel drive by government departments and financial institutionsXinkuo Xu0Zenglu Song1Jinjing Lu2School of Finance, Capital University of Economics and Business, Beijing, ChinaSchool of Finance, Capital University of Economics and Business, Beijing, ChinaSchool of Urban Economics and Public Administration, Capital University of Economics and Business, Beijing, ChinaUnlike existing studies that concentrate on haze pollution at the provincial and city levels in China, this study utilizes data from 1762 counties from 2009 to 2020. Using a multi-temporal difference-in-differences method, the study investigates the impact of green finance reform and innovation pilot zones (GFRIs) on county haze pollution (CHP) through the synergy of governmental departments and financial institutions. The findings indicate that GFRIs can reduce CHP, and this effect is realized by promoting green innovation, strengthening environmental penalties, and alleviating fiscal pressure. Heterogeneity analysis demonstrates that the inhibitory effect of GFRIs on CHP is more pronounced in counties with lower levels of financial development, higher levels of industrial development, poorer and in the central and western regions. The GFRIs achieve a win-win situation for economic growth and pollution reduction. The GFRIs should leverage the synergy of “active” government and “effective” market, establishing a long-term mechanism for CHP control.https://www.tandfonline.com/doi/10.1080/15140326.2025.2460151Green financecounty haze pollutiongreen innovationfiscal pressure |
| spellingShingle | Xinkuo Xu Zenglu Song Jinjing Lu Green finance policy and regional air pollution control: a two-wheel drive by government departments and financial institutions Journal of Applied Economics Green finance county haze pollution green innovation fiscal pressure |
| title | Green finance policy and regional air pollution control: a two-wheel drive by government departments and financial institutions |
| title_full | Green finance policy and regional air pollution control: a two-wheel drive by government departments and financial institutions |
| title_fullStr | Green finance policy and regional air pollution control: a two-wheel drive by government departments and financial institutions |
| title_full_unstemmed | Green finance policy and regional air pollution control: a two-wheel drive by government departments and financial institutions |
| title_short | Green finance policy and regional air pollution control: a two-wheel drive by government departments and financial institutions |
| title_sort | green finance policy and regional air pollution control a two wheel drive by government departments and financial institutions |
| topic | Green finance county haze pollution green innovation fiscal pressure |
| url | https://www.tandfonline.com/doi/10.1080/15140326.2025.2460151 |
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