A Study on the Impact of the Synergistic Effects of Green Finance and Environmental Regulation on China's High-Quality Economic Development: An Empirical Analysis from a Heterogeneous Regional Perspective

Abstract

Based on panel data from 30 provinces in China from 2010 to 2022, this study constructs a green finance development index, an environmental regulation intensity index, and their interaction term to empirically examine the regional heterogeneity of their synergistic effects on high-quality economic development. Using a comprehensive evaluation system encompassing innovation, coordination, green development, openness, and sharing, combined with a two-way fixed-effects model, the results show that: The synergistic effects vary across regions: The interactive effect between green finance and environmental regulation significantly promotes high-quality development nationwide and in the eastern and central regions; however, in western China, this effect is statistically insignificant and exhibits a weak inhibitory trend. The core mechanism is clear: the high-end transformation of industrial structure and green technology innovation constitute a dual path for synergistically enhancing total factor productivity and driving high-quality development. Analysis of the Roots of Regional Disparities: The eastern region achieves deep synergy through its industrial foundation, mature financial markets, and efficient policy implementation; the central region experiences effective synergy during its transition period, but its intensity is limited; the western region, constrained by resource-based path dependence, a lack of green finance, ineffective regulation, and weak enterprise transformation capabilities, faces the challenge of balancing short-term compliance costs with long-term development momentum. Research Value and Policy Implications: The study confirms the significant spatial dependence of synergy effects, providing empirical support for differentiated regional governance. Future policies require precise positioning: the eastern region should strengthen institutional innovation leadership, the central region should focus on supporting transformation, the western region needs to prioritize strengthening green financial infrastructure and building a progressive environmental regulatory framework to promote high-quality and coordinated development across the region.