Research on the Low Carbon of GFD: From the Perspective of GL Based on Environmental Protection

Abstract Enhancing the low-carbon effect of green finance development (GFD) is an effective way for China to accelerate the comprehensive deepening of supply side structural reform, better realise the high-quality development of green economy and better protect the environment. Therefore, based on the green technology innovation theory and endogenous growth theory, from the four dimensions of green innovation (GI) in the GLOBIO model, the unbalanced panel data of 8976 manufacturing listed companies from 2009 to 2021 were used. This paper deeply explores the low-carbon effect of GI on the development of green finance (GF) in China’s manufacturing industry. The results show that: on the whole, GI based on environmental protection has a significant incentive effect on the low-carbon effect of GFD. Compared with green material innovation and green process innovation, green product design innovation and green equipment innovation have more incentive effect. Further analysis shows that green product design innovation and green equipment innovation can produce incremental effect on the low-carbon effect of green financial development through green material innovation. The conclusion not only provides empirical support for green technology innovation theory and endogenous growth theory, but also provides effective evidence for the path of GF to achieve low-carbon development.