Author(s)

Yuan Huaiyu, Liu Jianghao, and Yao Naiqi

Corresponding Author

Liu Jianghao

ABSTRACT

This paper analyzes the mechanism of green finance development promoting industrial structure optimization. The panel data of 14 cities and states in Hunan Province of China from 2010 to 2017 were used to measure the status of industrial structure and green financial efficiency. The Spatial Interaction Model was constructed to empirically analyze the impact of green finance on the upgrading of industrial structure through the green credit threshold, technological innovation and green consumption. The study finds that the interstate industrial structure and green financial efficiency have the commonality of time and space; in general, green finance can promote industrial structure’s optimization of Hunan Province through three major channels. Among them, green finance can promote the rationalization of industrial structure through the way of technological innovation and green consumption. However, the three major ways of green credit threshold, technological innovation and green consumption are not conducive to the supererogation of industrial structure.

KEYWORDS

Green financial efficiency, industrial structure optimization, spatial interaction