Research Article
Open Access
Green Finance and Low-Carbon Economic Development: Moderating Roles of Green Technology Innovation and Government Intervention in China
1
School of Economics, Sichuan University of Science and Engineering, Zigong 643000, China
* Corresponding Author:
Mengdie Zhang,
[email protected]
Volume 3, Issue 2
2026
Received: 19 January 2026
Accepted: 07 February 2026
Published: 04 March 2026
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CC BY 4.0 License
Article Information
Published in
Journal of Social Systems and Policy Analysis
Volume/Issue
Volume 3, Issue 2, 2026
Pages
55-68
Abstract
Using balanced panel data for 30 Chinese provinces from 2005 to 2022, this study investigates the impact of green finance (GF) on low-carbon economic development (LCE), with particular attention to the moderating roles of green technology innovation (GTI) and government intervention intensity (GII). A two-way fixed effects model is employed to control for regional heterogeneity and time effects. The results show that GF significantly promotes LCE. Moreover, GTI strengthens the positive effect of GF on LCE, whereas GII weakens this relationship, indicating that excessive government intervention may reduce the effectiveness of GF in supporting low-carbon development. These findings remain robust across alternative specifications and measurements, and provide policy implications for improving green financial systems and advancing low-carbon transitions in emerging economies.
Graphical Abstract
Keywords
green finance
low-carbon economic development
green technology innovation
government intervention
Data Availability Statement
Data will be made available on request.
Funding
This work was supported in part by the Chengdu Philosophy and Social Sciences Research Center and the Chengdu Green and Low-Carbon Development Research Center under Grant LD202521; in part by the Sichuan Provincial Key Laboratory of Philosophy and Social Sciences for Digital Analysis and Intelligent Decision-Making in Urban–Rural Industrial Integration Development (Project on the Measurement, Evaluation, and Mechanisms of Urban–Rural Industrial Integration in Southern Sichuan under Digital Economy Empowerment) under Grant CXCYRH25B-23; and in part by the Sichuan University of Science and Engineering Talent Introduction Project (Research on the Mechanisms and Pathways of Technological Innovation’s Impact on High-Quality Economic Development under the “Dual Carbon” Goals) under Grant 2023RC17.
Conflicts of Interest
The authors declare no conflicts of interest.
AI Use Statement
The authors declare that no generative AI was used in the preparation of this manuscript.
Ethical Approval and Consent to Participate
Not applicable.
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APA Style
Zhang, M. (2026). Green Finance and Low-Carbon Economic Development: Moderating Roles of Green Technology Innovation and Government Intervention in China. Journal of Social Systems and Policy Analysis, 3(2), 55–68. https://doi.org/10.62762/JSSPA.2026.563767
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TY - JOUR AU - Zhang, Mengdie PY - 2026 DA - 2026/03/04 TI - Green Finance and Low-Carbon Economic Development: Moderating Roles of Green Technology Innovation and Government Intervention in China JO - Journal of Social Systems and Policy Analysis T2 - Journal of Social Systems and Policy Analysis JF - Journal of Social Systems and Policy Analysis VL - 3 IS - 2 SP - 55 EP - 68 DO - 10.62762/JSSPA.2026.563767 UR - https://www.icck.org/article/abs/jsspa.2026.563767 KW - green finance KW - low-carbon economic development KW - green technology innovation KW - government intervention AB - Using balanced panel data for 30 Chinese provinces from 2005 to 2022, this study investigates the impact of green finance (GF) on low-carbon economic development (LCE), with particular attention to the moderating roles of green technology innovation (GTI) and government intervention intensity (GII). A two-way fixed effects model is employed to control for regional heterogeneity and time effects. The results show that GF significantly promotes LCE. Moreover, GTI strengthens the positive effect of GF on LCE, whereas GII weakens this relationship, indicating that excessive government intervention may reduce the effectiveness of GF in supporting low-carbon development. These findings remain robust across alternative specifications and measurements, and provide policy implications for improving green financial systems and advancing low-carbon transitions in emerging economies. SN - 3068-5540 PB - Institute of Central Computation and Knowledge LA - English ER -
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Compatible with LaTeX, BibTeX, and other reference managers
@article{Zhang2026Green,
author = {Mengdie Zhang},
title = {Green Finance and Low-Carbon Economic Development: Moderating Roles of Green Technology Innovation and Government Intervention in China},
journal = {Journal of Social Systems and Policy Analysis},
year = {2026},
volume = {3},
number = {2},
pages = {55-68},
doi = {10.62762/JSSPA.2026.563767},
url = {https://www.icck.org/article/abs/jsspa.2026.563767},
abstract = {Using balanced panel data for 30 Chinese provinces from 2005 to 2022, this study investigates the impact of green finance (GF) on low-carbon economic development (LCE), with particular attention to the moderating roles of green technology innovation (GTI) and government intervention intensity (GII). A two-way fixed effects model is employed to control for regional heterogeneity and time effects. The results show that GF significantly promotes LCE. Moreover, GTI strengthens the positive effect of GF on LCE, whereas GII weakens this relationship, indicating that excessive government intervention may reduce the effectiveness of GF in supporting low-carbon development. These findings remain robust across alternative specifications and measurements, and provide policy implications for improving green financial systems and advancing low-carbon transitions in emerging economies.},
keywords = {green finance, low-carbon economic development, green technology innovation, government intervention},
issn = {3068-5540},
publisher = {Institute of Central Computation and Knowledge}
}
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