Efficiency Assessment of Policy Instruments for Green Finance Management in the Context of Low Carbon Economy Based on Panel Vector Autoregressive Modeling

Abstract

This paper takes green finance policy as the research object and collects local government policy texts about green finance so as to study its policy structure in depth. Then, it studies the theory of green finance to support the low-carbon economy, empirically analyzes it in terms of measurement using the panel vector autoregressive model, and tests its smoothness and covariance to explore the impact of green finance in the development of the low-carbon economy. According to the findings, the proportion of demand-based green financial policies is the lowest among the five provinces, with a mean value of 22%. The extreme differences in development levels of a low-carbon economy and green finance are 1.52 and 1.46, respectively, showing different characteristics. The model regression coefficient of the level of green financial development is 0.08, and the development of a low-carbon economy positively influences it. Although the effectiveness of green financial policies will fluctuate, the overall trend is upward. This paper analyzes the panel vector autoregressive model and the effectiveness of policy tools to provide suggestions for improving the policy system.

Keywords

• panel vector autoregressive model
• low carbon economy
• green financial policy
• policy tool efficiency
• 91g50