Research on the dynamic relationship between environmental finance and ecological environment-Based on PVAR model
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Chenggang Li and Yong Gan
The correct understanding of the positive role of environmental finance in the ecological environment is an important prerequisite and guarantee for the rational allocation of environmental financial resources and the correct formulation of environmental financial policies. Selecting the data of 31 provinces (municipalities, autonomous regions) in China from 2009 to 2015, this paper uses PVAR model to empirically analyze the dynamic relationship of environmental finance and ecological environment. The empirical results show that: (1) From a national perspective, the development of environmental finance and ecological environment presents ‘low-high’ character represented by Xinjiang, ‘high-low’ character represented by Shanghai, ‘High-High’ character represented by Zhejiang and the ‘low-low’ character by Tibet; (2) As a whole, the development of environmental finance has a significant correlation with the ecological environment; (3)The development of environmental finance can promote the improvement of the ecological environment, and the ecological environment will affect the development of environmental finance under certain lag period.
Environmental finance; ecological environment; PVAR model