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Carbon emission reduction is a systematic project requiring support from policy, capital, and technology in its promotion, which presents a greater need for green finance. Frontier research focuses on the impact of green finance on local CO2 emissions, but generally ignores its ripple impacts on carbon emission reduction in adjacent areas. Combining panel data from 30 Chinese provincial-level cities from 2004 to 2019, this study employs a spatial panel Durbin model to empirically test the ripple effect of green finance on carbon emission reduction in adjacent areas and further investigate the formation mechanism of the ripple effect. The results are as follows: (1) Green financial development has a significant inhibitory effect on local and neighboring CO2 emissions, which affirms the existence of the ripple effect of green finance. (2) Through formation mechanism analysis, it is found that the upgrading of an industrial structure has played a transmission role in the ripple effect of green finance. Finally, based on the empirical results, some suggestions are put forward from the perspectives of innovating green financial services and promoting the effective alignment of green financial development with carbon emission reduction targets and the deep integration of green finance and regional green industry development, so as to better develop the potential of green finance in the realization of the carbon reduction goals.

The relationship between PPI and CPI is one of the hot spots in the study of macroeconomics. Taking China as an example, the paper tests dynamic causality between PPI and CPI during the period of 2000:M1-2019:M12. In view of structural mutations in time series variables, the bootstrap rolling-window causality test is applied to restudy the dynamic causal relationship. As a result, it exists bidirectional transmission mechanism between CPI and PPI, both positive transmission of PPI to CPI and reverse transmission of CPI to PPI. In addition to putting more emphasis on transmission mechanism and causality between PPI and CPI, formulation of macroeconomic policy needs to focus on the correlation between PPI and CPI, and then the government can implement more targeted measures, such as strengthening the comprehensive application of monetary policy and fiscal policy, further deepening the supply-side reform, optimizing the industrial structure to strengthen internal relationship between CPI and PPI.