Green Fiscal-Financial Policy Synergy and EKC Dynamics: Evidence from 252 Chinese Cities

Green Fiscal-Financial Policy Synergy and EKC Dynamics: Evidence from 252 Chinese Cities | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Green Fiscal-Financial Policy Synergy and EKC Dynamics: Evidence from 252 Chinese Cities Ren Wang, Danchen Li, Yicheng Duan, Xin Zheng This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6507527/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract The Environmental Kuznets Curve (EKC) serves as a foundational framework for analyzing the dynamic interplay between economic development and environmental protection. While existing literature has extensively explored the interaction between economic growth and environmental quality within the EKC framework, as well as the individual impacts of green fiscal and green financial policies, there remains a notable gap in understanding the transmission mechanisms and synergistic effects between these two policy domains. This study extends the EKC framework dynamically and conducts a multidimensional analysis to investigate the synergistic impact of green fiscal and green financial policies on the coordination between economic development and environmental protection. Our findings reveal three key insights: (1) The shape of the EKC varies significantly across different pollution indicators, and even for the same indicator, the EKC exhibits dynamic migration characteristics over time. (2) The positive influence of green financial policies on the coordination between economic development and environmental protection is subject to threshold constraints, whereas green fiscal policies demonstrate a more consistent and sustained incentive effect. At the current stage, green fiscal policies outperform green financial policies in terms of effectiveness. (3) Significant synergies exist between green fiscal and green financial policies, suggesting that tailored policy portfolios based on specific pollution indicators are more effective than isolated policy enhancements. Consequently, policymakers should adopt a dynamic and diversified perspective to systematically address the coordination between economic and environmental development. Rather than merely intensifying green fiscal or green financial policies, emphasis should be placed on leveraging their synergistic effects and heterogeneous impacts to design targeted policy portfolios. Green fiscal policy Green financial policy Policy synergy Environmental Kuznets Curve (EKC) Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-6507527","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":446749614,"identity":"634c5d01-8418-4748-92b0-98ed794be15e","order_by":0,"name":"Ren Wang","email":"","orcid":"","institution":"Capital University of Economics and Business","correspondingAuthor":false,"prefix":"","firstName":"Ren","middleName":"","lastName":"Wang","suffix":""},{"id":446749615,"identity":"b02aad05-ef69-4bf9-917b-c820fc6a08e2","order_by":1,"name":"Danchen Li","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA0UlEQVRIiWNgGAWjYBAC+QYgIcFgIQek2ICYmbAWgwMgLQkSxiRoAZMJEokNxGthP3yAwfKHRHr/jORjDxgqrBMb2M8ewKtFvictAeSw3Bk30tINGM6kJzbw5CXgt+YGjwFYywaJHDMJxrbDiQ0SPAZEaUk3kMj/JsH4jwQtCQYSOWwSjA1EaDE4A/JLmoThjDPPzA0SjqUbt/Hk4Nci3374ALOEjY08f3vyswcfaqxl+9nPEHAYAwP7bwkYM4EBEjsEAeMHYlSNglEwCkbByAUAH1g7oTppuxIAAAAASUVORK5CYII=","orcid":"","institution":"Capital University of Economics and Business","correspondingAuthor":true,"prefix":"","firstName":"Danchen","middleName":"","lastName":"Li","suffix":""},{"id":446749617,"identity":"7498f100-2959-433d-86e6-c5d35260ab0a","order_by":2,"name":"Yicheng Duan","email":"","orcid":"","institution":"Nanjing University","correspondingAuthor":false,"prefix":"","firstName":"Yicheng","middleName":"","lastName":"Duan","suffix":""},{"id":446749620,"identity":"9a386b91-a63c-417c-be3b-ab75113d7008","order_by":3,"name":"Xin Zheng","email":"","orcid":"","institution":"Chongqing Technology and Business University","correspondingAuthor":false,"prefix":"","firstName":"Xin","middleName":"","lastName":"Zheng","suffix":""}],"badges":[],"createdAt":"2025-04-22 22:53:09","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-6507527/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-6507527/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":81487602,"identity":"50b46d1e-9fb8-4a80-a0f8-fedc87d58576","added_by":"auto","created_at":"2025-04-27 18:16:27","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":676113,"visible":true,"origin":"","legend":"","description":"","filename":"Manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-6507527/v1_covered_587c71f5-3af5-4a69-8957-4f70f75b9247.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Green Fiscal-Financial Policy Synergy and EKC Dynamics: Evidence from 252 Chinese Cities","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Green fiscal policy, Green financial policy, Policy synergy, Environmental Kuznets Curve (EKC)","lastPublishedDoi":"10.21203/rs.3.rs-6507527/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6507527/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThe Environmental Kuznets Curve (EKC) serves as a foundational framework for analyzing the dynamic interplay between economic development and environmental protection. While existing literature has extensively explored the interaction between economic growth and environmental quality within the EKC framework, as well as the individual impacts of green fiscal and green financial policies, there remains a notable gap in understanding the transmission mechanisms and synergistic effects between these two policy domains. This study extends the EKC framework dynamically and conducts a multidimensional analysis to investigate the synergistic impact of green fiscal and green financial policies on the coordination between economic development and environmental protection. Our findings reveal three key insights: (1) The shape of the EKC varies significantly across different pollution indicators, and even for the same indicator, the EKC exhibits dynamic migration characteristics over time. (2) The positive influence of green financial policies on the coordination between economic development and environmental protection is subject to threshold constraints, whereas green fiscal policies demonstrate a more consistent and sustained incentive effect. At the current stage, green fiscal policies outperform green financial policies in terms of effectiveness. (3) Significant synergies exist between green fiscal and green financial policies, suggesting that tailored policy portfolios based on specific pollution indicators are more effective than isolated policy enhancements. Consequently, policymakers should adopt a dynamic and diversified perspective to systematically address the coordination between economic and environmental development. Rather than merely intensifying green fiscal or green financial policies, emphasis should be placed on leveraging their synergistic effects and heterogeneous impacts to design targeted policy portfolios.\u003c/p\u003e","manuscriptTitle":"Green Fiscal-Financial Policy Synergy and EKC Dynamics: Evidence from 252 Chinese Cities","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2025-04-24 08:46:26","doi":"10.21203/rs.3.rs-6507527/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"f2584029-d700-4a35-bd7b-6f7595665452","owner":[],"postedDate":"April 24th, 2025","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[],"tags":[],"updatedAt":"2025-04-27T18:08:19+00:00","versionOfRecord":[],"versionCreatedAt":"2025-04-24 08:46:26","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-6507527","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-6507527","identity":"rs-6507527","version":["v1"]},"buildId":"8U1c8b4HqxoKbykW_rLl7","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}