Spatial Effects of Green Credit on Air Quality: An Empirical Test Based on the Dual Carbon Perspective

Abstract

Based on balanced panel data from 30 provinces and cities (excluding Hong Kong, Macao, Taiwan, and the Tibet Autonomous Region) from 2016 to 2020, this article empirically analyses the spatial effect of green credit (GD) on air quality index (AQI) and the regulatory mechanism between them and explores the differences in the impact of GD on AQI by dividing China into regions in terms of geographical distribution, financial development level, and air quality level. The empirical results found that AQI depends on significant spatial characteristics. GD has a significant inverted U-shaped impact on AQI and is currently at the stage of suppressing air quality. The inverted U-shaped impact is more remarkable in the eastern region, in areas with poor financial development, in areas with poor air quality and GD has entered the stage of promoting air quality levels in the eastern regions, and in areas with good financial development. Environmental regulation has a negative moderating effect on the relationship between GD and AQI, which is less pronounced in eastern regions, in areas with poorly financial development, and in areas with better air quality.