Research on the impact of green fiscal on carbon emissions based on the fixed effect model with panel data

Abstract

Green fiscal policy tools are an important innovation in the modern fiscal system. A series of fiscal policies to promote green governance have been introduced one after another, which is of great significance to achieving carbon emission reduction. Based on this, this study uses 29 provinces in China from 2007 to 2021 as data samples, constructs a green fiscal indicator system, studies the mechanism of green fiscal on carbon emission reduction, and conducts heterogeneity analysis. Research shows that green fiscal significantly reduces carbon emission levels, and this result still holds after robustness testing; in the mechanism analysis, green fiscal can significantly improve energy efficiency, and the Sobel test shows that energy efficiency has a mediating effect on green fiscal carbon emission reduction; in the heterogeneity analysis, the carbon emission reduction effect of green fiscal is more significant in the central and western regions. Finally, corresponding policy recommendations are put forward to help reduce carbon emissions.