ISSN: 2222-6990
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High-quality economic development is an important goal in global sustainable development efforts. After experiencing rapid growth, China faces both economic and environmental challenges. Green finance, which integrates environmental and financial elements, is crucial for high-quality economic transformation, which promotes industrial upgrading and transition to low-carbon. Previous studies have mainly explored the linear relationship between the two, but neglected the non-linear impacts. As a key policy tool, environmental regulation influences business activities and regional development patterns, potentially altering the role of green finance in high-quality economic development. Therefore, this paper explores the threshold effect of environmental regulation in green finance-Promoted high-quality economic development using data from 282 cities in China. The results of the study show that there is indeed a single threshold value, and the effect of green finance becomes more obvious when this threshold value is crossed. Therefore, investment in and regulation of environmental pollution control should be appropriately increased.
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