Coupling and coordinated development of low-carbon economy and green finance: an empirical study of the Yangtze River Delta region in China.

ABSTRACT

The introduction of China's double carbon target has led to a new stage in the development of China's low-carbon economy, while the development of China's green finance is also facing new challenges. Based on the determining of the relationship between low-carbon economy and green finance, this study selected the Yangtze River Delta city cluster of China, an exemplary region for the development of low-carbon economy and green finance, constructed a multi-level comprehensive index system covering two systems of low-carbon economy and green finance and conducted a coupled and coordinated relationship analysis based on the panel data of green finance and low-carbon economy-related indicators from 2016 to 2020. The empirical results showed that the interaction between the low-carbon economy system and the green finance system in the Yangtze River Delta region gradually weakened during 2016-2020, and the mechanism of interaction between the two systems has not been fully developed and utilized. Overall, the development of green finance in all four provinces and cities has not gained sufficient momentum, which is a constraint to the coupled and coordinated development of low-carbon economy and green finance in the four provinces and cities in the Yangtze River Delta. Zhejiang Province and Jiangsu Province performed better in terms of the scale of green finance and the use of diversified instruments, while Shanghai City performed better in terms of low-carbon economy, whereas Anhui Province needs to improve in both low-carbon economy and green finance.