Turning “green” into “gold”: A study on the impact of green finance pilot zone policy on energy carbon emission efficiency

Abstract As a crucial mechanism for advancing sustainable development, green finance invigorates national initiatives to reach peak carbon emissions and achieve carbon neutrality. This study leverages panel data from 215 Chinese cities spanning 2013–2022, using the green finance pilot zone policy (GFZ) as a quasi‐natural experiment. By employing difference‐in‐differences methodologies, this research examines the effects of GFZ on energy carbon emission efficiency (ECE) in China, along with its spatial spillover impacts. The findings reveal a substantial enhancement in ECE attributable to GFZ, with results remaining robust through various stability checks. Mechanism analysis further indicates that GFZ boosts ECE by promoting green innovation and facilitating industrial upgrading and transformation. Additionally, heterogeneity analysis suggests that GFZ is more effective in cities with higher marketization levels. Improvements in ECE among different types of resource‐based cities are observed in the order of declining, regenerative, growing, and mature cities. Spatial analysis reveals that the spillover effects of GFZ peak at a distance of 500 km from the pilot zones. This study not only provides empirical evidence supporting the expansion of GFZ but also offers a unique Chinese perspective on sustainable development.