Green finance innovation and high-quality economic development: Evidence from a quasi-natural experiment

This study examines the impact of China's Green Finance Reform and Innovation Pilot Zones on high-quality economic development using a quasi-natural experiment. Analyzing panel data from 277 cities (2010-2023) with a difference-in-differences approach, the results confirm that green finance significantly enhances economic transformation through improved resource allocation and environmental governance. The effect is stronger in regions with lower market openness and stringent environmental regulations. Foreign direct investment and human capital development further amplify the policy benefits. Findings provide insights for policymakers on aligning financial innovation with regional economic and environmental strategies to foster sustainable growth.