Research on the Impact of Economic Financialization on Pollution Reduction – Analysis Based on Panel Data of 285 Prefecture-level Cities

Abstract

As the core content of green China construction, pollution reduction plays an important role in achieving high-quality development. This paper mainly explores the pollution reduction effect of finance in the process of increasing the status of the national economic system, and verifies the indirect role of innovation-driven development in the relationship between economic financialization and pollution reduction. The results show that economic financialization has a significant direct impact on the emission reduction of industrial wastewater and sulfur dioxide, especially in cities with a high degree of financialization. Subsequently, the sample data transformation and the robustness test of green credit policy further support the above conclusions. At the same time, urban innovation capacity has a partial indirect effect on the pollution reduction of economic financialization, while robot use only has an indirect effect on the sulfur dioxide reduction of economic financialization. This study provides a theoretical basis for promoting wider and deeper development of green finance.