Green Finance and Value Realization of Forest Ecological Products in Karst Areas: A Mediating-Effect Perspective Based on the Level of Karst Desertification

With their unique karst geomorphology and rich biodiversity, forest ecosystems present huge ecological potential, and their ecological products promise great economic value. In this context, an important way to realize the sustainable development of karst areas is the transformation of such ecological potential into economic advantages. In this paper, Guizhou Province, China, one of the most representative regions with karst geomorphology, is examined in a case study. Using the equivalent factor method, the values of forest ecological products in various states of Guizhou Province were calculated for the years 2010, 2015, and 2020. Furthermore, a two-way fixed-effects model was employed to examine the influence of green finance on the realization of these values in the karst region. The findings of this paper are as follows: (1) The value of forest ecological products presented an increasing trend from 2010 to 2020, and green finance significantly promoted the value realization of forest ecological products. Robust estimates could still be obtained after endogeneity control. (2) The results of heterogeneity testing indicated that in karst regions with slower economic development and poor ecological environment, green finance promoted the value realization of forest ecological products more significantly. (3) The mechanism test showed that by providing financial support for rocky desertification control and forest restoration projects, green finance promoted ecological restoration, governance, and vegetation restoration while mitigating rocky desertification; in this way, green finance drove the development of ecological forestry and industrial upgrading to accelerate the value realization of ecological products, thereby strongly supporting the sustainable development of karst areas.