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Financing Constraints, Carbon Emissions and High-Quality Urban Development?Empirical Evidence from 290 Cities in China

Shaobo Wang    
Junfeng Liu and Xionghe Qin    

Resumen

The tightening of the financing environment and global climate change have become urgent problems for high-quality economic development all over the world. Facing these challenges, the Chinese government is committed to alleviating regional financing constraints and setting carbon-emission reduction targets. However, are these measures effective for high-quality urban development? This paper attempts to use unbalanced panel data from 290 cities on the Chinese mainland from 2004?2017 to provide an answer to the problem using a scatter plot and the mediator effect model. Results show that: (1) financing constraints limit the funds required for urban development, which is not conducive to high-quality urban development, but high-quality urban development has the characteristics of ?path dependence?; (2) In the context of environmental regulation, financing constraints are mainly enacted through reducing carbon emissions, which is inconducive to high-quality urban development. Carbon emissions are the transmission mechanism whereby financing constraints affect high-quality urban development; (3) Cities with large financing constraints have insufficient capital investment for high-quality urban development, and the aggravation of financing constraints has an increasingly obvious inhibitory effect on high-quality urban development. Moreover, due to the effect of the global economic crisis in 2008, the negative effect of financing constraints on high-quality urban development had the characteristics of U-shaped fluctuation. Thus, this paper believes that the implementation of China?s double carbon policy is at the expense of high-quality urban development, and there is a long way to go before high-quality urban development reaches later stages. Other countries should carefully weigh up the relationship between environmental pollution and economic development when facing financing constraints.

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