Impact of green finance on high-quality economic development : a panel data regression

Green finance aims to achieve a balance between economic performance and sustainable economic development. This study examines the effect of green finance on sustainable eco- nomic development at the national level by spotlighting countries that are at the forefront of green bond issuance. Employing balanced panel data and utilizing a mediation model with fixed effects, the results demonstrate a significant ability of green finance to mitigate carbon emissions and promote high-quality economic development. The robustness of the findings is confirmed by a series of statistical tests. Furthermore, the renewable energy consumption structure enhances the suppressive effect of green finance on carbon emissions, highlighting its crucial role as a channel for mitigating carbon emissions. Overall, increasing green bond investment and structuring renewable energy consumption are crucial for carbon emission reduction, and this paper contributes new evidence regarding the emission reduction effects of green finance. It also offers several policy implications: by prioritizing green finance, R&D, and renewable energy consumption, the policymakers can achieve high quality economic development and lower carbon emissions.