Pan, Dongyang;
(2021)
Green Financial Policy and Sustainable Development: Insights from Macroeconomic Modelling and Early Evidence from China.
Doctoral thesis (Ph.D), UCL (University College London).
Abstract
This thesis studies the newly emerged “green financial policy” and its role in supporting the sustainable development of the economy. Green financial policy means financial regulators’ policy orientation in favour of environmental sustainability and their policy measures that aim to align the financial sector and financial activities with the green and sustainable development goal. Three novel questions which are fundamental to policy making and next step research are investigated. These questions are: (1) Why do we need green financial policy and how can it contribute to the green transition and sustainable development of the economy? (2) How should a central bank, the most typical financial regulator, participate in the environmental-sustainability agenda and “green” its policy tool? (3) What will the effect of green financial policy be, according to the early evidence from China? To answer these questions, three macroeconomic and econometric models are employed. The first is a macroeconomic endogenous growth model with “directed technical change” and financial features. The second is a macroeconomic dynamic stochastic general equilibrium (DSGE) model enriched with environmental features. The third is an econometric panel regression model in which the regional fixed effect is introduced. It is found that green financial policy is necessary for and effective in the green transition of the economy. Financial regulators should carry out such policy carefully. To be specific, first, green financial policy can facilitate the green transition of the economy since it can alleviate financial constraints which could delay the transition. Second, a central bank can adjust the coefficients for the inflation and output targets in its traditional monetary policy rule to take the climate factor into account. It is not suggested to integrate a new climate target into the narrow monetary policy rule at present. Third, the green financial policy can have positive effects on financial sector greenness and environmental quality.
| Type: | Thesis (Doctoral) |
|---|---|
| Qualification: | Ph.D |
| Title: | Green Financial Policy and Sustainable Development: Insights from Macroeconomic Modelling and Early Evidence from China |
| Event: | UCL (University College London) |
| Language: | English |
| Additional information: | Copyright © The Author 2021. Original content in this thesis is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) Licence (https://creativecommons.org/licenses/by-nc/4.0/). Any third-party copyright material present remains the property of its respective owner(s) and is licensed under its existing terms. Access may initially be restricted at the author’s request. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > Bartlett School Env, Energy and Resources |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10131830 |
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