Technology-finance integration pilot in low-carbon transition: Quantifying the synergistic effect on pollution and carbon reduction

Integrating environmental policies into the macroeconomic policy framework is essential for sustainable development and low-carbon transition. This paper aims to quantify the environmental synergy of macroeconomic policies, ensuring consistency between sustainable growth and green development. Based on panel data from Chinese 232 prefecture-level cities from 2003 to 2020, this paper treats the technology-finance integration pilot (TFIP) policy as a quasi-natural experiment and applies a multi-period difference-in-differences model to assess its synergistic impact on pollution and carbon reduction. The findings reveal that the TFIP significantly enhances the synergistic impact on pollution and carbon reduction. Notably, this synergy is particularly pronounced in eastern and economically advanced regions. Mechanisms analysis show that the policy works by improving green technological innovation and increasing green investment. Specifically, this policy increases research and development expenditure in pilot cities, accelerates the commercialization of renewable energy and low-carbon achievements, and improves energy efficiency. Furthermore, it enhances the transparency of green financial projects, increases green investment, and optimizes the energy structure. These results provide empirical support and policy recommendations for enhancing the coherence of sustainable development and climate mitigation, fostering green technological innovation, and promoting green investment in renewable energy and low-carbon transition.