The Impact of Green Credit on Regional Low-Carbon Transition: A Study on the Mediating Effect Based on Environmental Regulation and Green Technology Innovation

Abstract

This study uses a mediation effect model to examine in detail how green credit affects the effectiveness of the regional low-carbon transition, based on panel data collected between 2012 and 2022 from 30 provinces in China. The findings indicate that green credit not only increases energy efficiency by fostering the advancement and innovation of green technology but also encourages the relaxation of environmental regulations, which in turn lowers carbon emissions. Environmental regulations and the advancement of environmentally friendly technology innovation play a major mediating role in the process. Innovation in green technology and environmental legislation are important mediating factors in this process. Furthermore, elements like local economic growth have an impact on how green credit is implemented.