Green Finance Empowering Forestry New Quality Productivity: Mechanisms and Practical Paths

The impact of green fiscal policies on forestry new quality productivity (FNQP) development and the mechanisms behind this are explored in this study. A scientific basis for the promotion of FNQP development through green fiscal policies is intended to be provided. In addition, novel perspectives on the high-quality development of forestry are offered. Panel data from 31 Chinese provinces between 2011 and 2022 are collected and discrepancies between green fiscal policies and the level of FNQP are examined. By constructing a two-way fixed-effects model and employing econometric methods, the significant promotion of FNQP by green fiscal policies is indicated. Indirect promotion of FNQP development through the upgrading of the forestry industrial structure and the intensification of environmental regulation by green fiscal policies is demonstrated by indirect impact analysis results. Furthermore, a positive spatial spillover effect of green finance on forestry new quality productivity is documented. For policy selection, regional economic development level heterogeneity characteristics should be taken into account. Based on the findings of this study, some recommendations have been given for responses to green fiscal policy for forestry new quality productivity in the future.