Green finance is an important practice of China’s high-quality economic development in the new era, which is closely related to economic development, environment, and energy conditions. However, few studies systematically analyze the impact of green finance on economic development, environmental pollution, and energy consumption, especially on China which is turning to high-quality economic development. In order to fill the gap, based on the annual data on 30 provinces (autonomous regions and municipalities) in China from 2008 to 2018, we construct a comparatively comprehensive green finance index system and use a panel regression model to explore the impacts of green finance on high-quality economic development, environmental pollution, and energy consumption. We find that green finance can significantly promote high-quality economic development, mitigate environmental pollution, and reduce energy consumption. There is spatial and temporal heterogeneity in the impact of green finance on China’s economic quality, environmental pollution, and energy consumption. In the eastern region, green finance has a remarkable positive impact on high-quality economic development and a significant negative impact on energy consumption, but the impact on environmental pollution is inconspicuous. In the central region, green finance has a prominent effect on reducing environmental pollution, but the impact on high-quality economic development and energy consumption is not significant. In the western region, green finance has not been able to significantly promote high-quality economic development, mitigate environmental pollution, and reduce energy consumption. After the clear proposal of green finance, the role of green finance in promoting a high-quality economy has enhanced, and the role of green finance in reducing environmental pollution and energy consumption has decreased. This study can provide a useful decision-making reference for promoting high-quality economic development, reducing environmental pollution and energy consumption, and spurring sustainable development.
The global pandemic caused by the outbreak of COVID-19 has posed significant risks to our health. Preventive measures such as closed management have greatly affected the economies, environments and societies of various countries. Economy, air pollution and income are three important interconnected aspects of sustainable development. However, current research lacks systematic quantitative analysis of their relationships. To fill the gap, this study adopts monthly data from January 2016 to April 2022 and constructs both a Simultaneous Equation Model (SEM) and a Time Varying Parameter Stochastic Volatility Vector Autoregressive (TVP-SV-VAR) model to empirically analyze the impact of COVID-19 on China's economy, air pollution and income. This study finds that the COVID-19 has a negative impact on China’s economy and income, and a positive impact on air pollution, and the impact of the COVID-19 is systematic. In addition, there is an inverted-U shaped relationship between air pollution and economics, and a positive correlation between economic and income. The impact of COVID-19 on the economy, air pollution and income show a process of sharp fluctuations to gradual stabilization that gradually stabilized over time. This process is time-varying in the short-term, medium-term and long-term. The impacts are persistent at three different time points (before, during and after the outbreak of COVID-19), but the negative impact on the economy and income is persistent, while the positive impact on air pollution is limited. This study provides a more systematic and dynamic understanding of the COVID-19 preventive and mitigation measures in China and even the world, which helps to provide insights into the formulation of more comprehensive planning strategies in the future. Supplementary Information The online version contains supplementary material available at 10.1007/s00477-023-02450-z.
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