Can green finance policy improve public health?

Abstract

There is a worldwide agreement to proactively enhance public health (PH) to mitigate potential challenges posed by future health crises. Alterations in social factors, including financial policy, serve as determinants of PH. Green finance policy (GFP) represents a groundbreaking innovation in financial policy. GFP addresses the shortcomings of traditional finance and serves as a key driver in promoting PH. This study establishes a theoretical framework on GFP’s impact on PH and employs the differences-in-differences method for validation. First, GFP has a significant positive impact on PH. Second, the impact mechanisms are green industry development, green governance investment, and green food supply. Third, the benchmark results are pronounced in regions with a high level of financial development and none ‘Atmospheric Ten’ policy pilot. This study explores the significant impact of GFP on PH, examining theoretical frameworks and empirical evidence. It offers valuable empirical insights and policy recommendations for governments. Governments should persist in refining green financial policies while pursuing economic development. Simultaneously, society should prioritise the construction of green PH facilities, widely promote the concept of green living, and cultivate a sustainable living environment.

Keywords

• Green finance policy
• public health
• green industry development
• green governance investment
• green food supply
• SDG 3: Green finance policy; public health