Does Green Finance Promote Green Total Factor Productivity? Empirical Evidence from China

Green economic growth is a major challenge for countries, as it requires achieving both ecological protection and development goals simultaneously. It can be expressed the continuous of green total factor productivity (GTFP), which core indicator reflecting simultaneous achievement environmental sustainability. This study provides an in-depth understanding how finance contributes to GTFP with data from 30 Chinese provinces between 2006 2021. The results reveal that has significant promotion effect on well spatial spillover effect. By splitting into technological progress efficiency improvement, improve former but not latter. influence through mechanisms innovation industrial structure upgrading, also only drive improvement. Regional heterogeneity suggests tends stronger significantly contribute improvement in regions higher levels. natural resource endowment reveals this more resource-rich areas, still cannot promote these regions. In contrast, enhance resource-general areas. information technology level shows levels technology, particular, enhancement by positive. findings provide valuable recommendations.