Can green finance improve carbon emission efficiency?

This article discusses the influence and mechanism of green finance on carbon emission efficiency. Based on the panel data of 27 provinces and municipality in China from 2008 to 2017, the slack-based model of unexpected output is used to measure the efficiency of carbon emissions. On this basis, the Tobit model is used to empirically study the impact and mechanism of green finance on the efficiency of carbon emissions. The consequences exhibit that (1) China’s carbon emission efficiency is not high and generally presents a gradient decreasing characteristic of east, middle, and west. (2) Overall, green finance plays a considerable role in improving carbon emission efficiency; by region and group, there are significant differences in the influence of green finance on carbon emission efficiency. (3) The study found that green finance promotes the efficiency of carbon emission through technological progress and industrial structure upgrading. This study provides empirical evidence and policy enlightenment for the realization of carbon peaking and carbon neutrality goals and the evolution of green finance.