Green finance stimulus plan has become an important tool for environmental governance in the post-COVID-19 era. This paper investigates the emission reduction effect and impact mechanism of green finance (GF). The empirical results indicate that GF reduces environmental pollution. This reduction effect is attributed to a promotion in green innovation and industrial upgrading. The emission reduction effect of GF reflects the threshold characteristics. Specifically, stricter environmental regulation increases the inhibitory effect of GF on pollution
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Ren et al. (2024) studied this question.
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