Promoting inclusive green growth (IGG) has become a global priority. While existing literature has explored various determinants of IGG, the specific role of green finance remains underexplored. To address this gap, this paper investigates the impact of green finance on IGG using panel data from 30 Chinese provinces between 2010 and 2021. We employ a comprehensive econometric framework, including the Ordinary Least Squares (OLS) model, mediation analysis, threshold models, and the Spatial Durbin Model (SDM). The findings demonstrate that green finance significantly fosters IGG, with industrial structure upgrading serving as a key transmission channel. The study also identifies significant regional heterogeneity: the impact is more pronounced in Northern China and regions with developed financial systems. Notably, the relationship is non-linear, exhibiting increasing marginal effects once specific thresholds in financial scale and energy structure are crossed. Furthermore, green finance generates significant positive spatial spillover effects, benefiting neighboring regions.
Yue Li (2026) studied this question.