Research on the Mechanism of Green Finance Serving the Real Economy under the Background of Chinese Modernization

This paper aims to explore the impact of green finance on the scale of the real economy in China, measurement methods for the efficiency of green finance in serving the real economy, regional efficiency trends in China, and their influencing factors. The study is based on panel data covering 30 provinces (municipalities and autonomous regions) from 2011 to 2020. At the scale level, the paper conducts a baseline regression, examines the reliability of conclusions through robustness tests and investigates spatial differences in heterogeneity. At the efficiency level, the paper establishes an SBM model to measure the effectiveness of green finance in serving the real economy and analyzes the development status of different regions. Finally, a random-effects panel Tobit model is employed to test the impact of green finance on efficiency. The conclusions are as follows: At the scale level, the comprehensive green finance index has a significant positive impact on the scale of the real economy. The impact is more pronounced and significant in financially developed regions, while the comprehensive index in financially underdeveloped regions has a smaller and insignificant effect on the real economy scale. At the efficiency level, over the course of a decade, the development of green finance in China has shown an overall upward trend in real economic efficiency. However, efficiency has consistently remained at low or ineffective levels with fluctuations. Guangdong and the northeastern region exhibit low-efficiency values with negative growth rates. In contrast, the southeastern coastal regions, Sichuan, and Guizhou have witnessed rapid efficiency growth over the decade. The comprehensive green finance index has a significantly negative impact on SBM efficiency. In conclusion, to address the current challenges of inadequate green finance development and implement financial system reforms, this paper puts forward a series of policy recommendations.