Green Finance Supply Expansion and the Decline of Provincial Carbon Intensity in China

Hongyu Cao; Weixiang Gan

doi:10.47297/wspciWSP2516-252716.20261004

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Green Finance Supply Expansion and the Decline of Provincial Carbon Intensity in China

Volume 10, Issue 4

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Green Finance Supply Expansion and the Decline of Provincial Carbon Intensity in China
Green Finance Supply Expansion and the Decline of Provincial Carbon Intensity in China
1.Langfang Zhenguigu Technology Co., Ltd., Langfang, Hebei, 065000, China
2.Lincoln University College, Petaling Jaya, Selangor Darul Ehsan, 47301, Malaysia
Vol. 10, Issue 4, Pages: 77-83(2026)
Published：30 August 2026
DOI：10.47297/wspciWSP2516-252716.20261004
Accepted：

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Cao Hongyu,Gan Weixiang.Green Finance Supply Expansion and the Decline of Provincial Carbon Intensity in China[J].Creativity and Innovation,2026,10(04):77-83.
DOI：

Cao Hongyu,Gan Weixiang.Green Finance Supply Expansion and the Decline of Provincial Carbon Intensity in China[J].Creativity and Innovation,2026,10(04):77-83. DOI： 10.47297/wspciWSP2516-252716.20261004.

摘要

Abstract

This paper audits the green finance indicator system for 30 Chinese provinces over 2010-2024 (450 province-year observations)

removes the financial carbon-intensity dimension

and reconstructs a non-carbon green finance supply index with the entropy weighting method. Estimation uses province and year two-way fixed effects with province-clustered robust standard errors

and the paper further reports the lagged model

a sample excluding the four centrally administered municipalities

winsorised data

the first-difference model

and dimensional decomposition. The reconstructed index and the official (final) green finance index correlate at 0.999; the official index measures green finance supply expansion

not carbon performance. Conditional on economic scale

fiscal scale

the GDP growth rate

and the fixed effects

the composite green finance supply index carries a coefficient of -0.003

insignificant at the 10% level. The green investment dimension shows a coefficient of -0.022

significant at the 10% level in the four-dimension joint model; pollution-control investment and local government environmental-protection expenditure form the more direct decarbonisation channel. The eastern

central

and western subsamples all yield positive

insignificant coefficients. Green finance evaluation should turn to carbon performance

with stronger project-level emission-reduction accounting and tighter financing constraints on energy-intensive industries.

关键词

Keywords

references

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