Does green finance have spatial spillover effects on carbon efficiency in China?

Abstract

To meet the carbon peaking target, it is critical to understand the spatial impact of green finance. The entropy weight approach is used to create a green finance index. The SBM-GML model was used to calculate carbon efficiency. With SDM model, we analyze how green finance affects carbon efficiency.Transmission mechanism was investigated using threshold and mediation models. In terms of carbon emission efficiency, green finance has a spatial spillover effect, and green finance development can effectively enhance carbon emission efficiency improvement. The effect of green finance on carbon emission efficiency can be enhanced when PGDP and ER exceed a certain level. With a 7.6% effect size, ER played a partial mediation role.