Research on the Mechanism of Green Finance on Economic Growth

Abstract

Since the reform and opening up, China's economic development has been rapidly changing, and has made great achievements that have attracted the world's attention. However, China's long-term implementation of the crude growth mode has certainly brought rapid economic growth, but in the long run, it has brought very serious environmental pollution and huge consumption of energy. In the face of increasingly severe resource consumption and environmental pollution, the development of green finance is an inevitable choice to improve the ecological environment, promote the transformation of economic structure and achieve sustainable economic development. Therefore, it is of great significance to study the impact of green finance on economic growth, industrial structure adjustment and energy saving and emission reduction in China, and to explore the mechanism effect of developing green finance to promote the green growth of China's economy. How to promote green sustainable development and high-quality economic growth is an important issue in contemporary Chinese economic development. Through green investment, green finance promotes the green transformation of polluting enterprises, the ecological industrial structure and green technological innovation, and thus has an important impact on the high-quality growth of China's economy. By combing the relevant literature on green finance and economic growth at home and abroad, this project systematically analyzes the comprehensive impacts of green finance on the conduction path of economic growth, based on the premise of the externalities of green finance, the micro-mechanisms of green finance's impact on economic growth, the transmission paths and the organic combination of regional heterogeneity. On the basis of empirical research, we explore the mechanism and effect of developing green finance to promote China's economic development, and put forward countermeasures and suggestions to promote economic growth with green finance at four levels: national, local government, financial institutions and enterprises.