Impact of Green Finance on Carbon Emission Efficiency and Spatial Spillover Effects: A Case Study of Guangzhou, China

The Green Finance Pilot Policy (GFPP) is a crucial initiative in China, aiming to provide financial support for achieving carbon neutrality. Objectively evaluating the outcomes of the GFPP is crucial for refining the policy and replicating successful experiences. This paper takes Guangzhou as a case study based on panel data from 25 cities spanning 2005 to 2019 and employs the synthetic control method to evaluate the impact of the GFPP on Guangzhou’s carbon emission efficiency (CEE). Additionally, this paper analyzes its spatial spillover effects and driving mechanisms through the SDID model. The results indicate that the GFPP has effectively enhanced Guangzhou’s CEE by an average of 25.3%. Furthermore, the GFPP has also enhanced the CEE of neighboring cities, with a decaying boundary of 100 km. Promoting green technology innovation and improving energy efficiency are identified as effective mechanisms through which the GFPP enhances the city’s CEE. This paper provides a comprehensive examination of the impact and mechanisms of the GFPP on CEE from a spatial perspective. The findings could offer valuable insights for advancing green finance systems and helping cities leverage financial policies to support low-carbon transition.