Bidirectional Spatial Spillover Effects of Green Finance Reform and Innovation Pilot Zones

DOI

10.2991/978-94-6239-801-6_99How to use a DOI?

Keywords

Bidirectional Spatial Spillover Effects; Green Finance Reform; Innovation Pilot Zones

Abstract

In 2017, the Chinese government established the first batch of Green Finance Reform and Innovation Pilot Zones (GFRIPZ), which were later expanded to “seven provinces and ten regions.” Green finance is financial activity supporting environmentally sustainable projects. The policy generates both positive spillovers and negative siphon effects, potentially crowding out surrounding resources while promoting local green transformation. This paper hypothesizes that the spatial effects of green finance policy represent a coexisting relationship rather than a strict choice between “spillovers” and “siphon effects.” Methodologically, this study utilises the spatial difference-in-differences method to estimate the effects of green finance policies while accounting for spatial relationships. Simultaneously, a spatial Durbin model is used to evaluate the direct and indirect spatial effects of carbon emissions from neighboring cities and explanatory variables. Furthermore, a geographically weighted regression is applied to identify the distance threshold beyond which positive effects become negative. Empirical results reveal that reform and policies related to innovation pilot zones have markedly lowered the carbon intensity of pilot cities. Moreover, the spatial spillover effects manifest a bidirectional “radiation siphon” mechanism, the magnitude of which differs by geographical distance.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Jinqiao Fang
PY  - 2026
DA  - 2026/10/23
TI  - Bidirectional Spatial Spillover Effects of Green Finance Reform and Innovation Pilot Zones
BT  - Proceedings of the 2026 2nd International Conference on Financial Innovation and Marketing Management (FIMM 2026)
PB  - Atlantis Press
SP  - 943
EP  - 959
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-801-6_99
DO  - 10.2991/978-94-6239-801-6_99
ID  - Fang2026
ER  -