A Study on the influence of China's green finance development on real estate prices
Authors: Chen Xinze 
Published: December 2023

At present, the importance of green finance in the world market is becoming increasingly prominent. Various kinds of green products have emerged, and auxiliary policies have also come into being. China is one of the world's largest carbon dioxide emissions and the world's largest investor in new energy. In the face of severe environmental problems and challenges of sustainable development, the Chinese government attaches great importance to the development of green finance, and has adopted a series of positive policy documents and guidance, including the establishment of special funds, providing preferential fiscal and tax policies, and the establishment of a green bond market to promote its role in the financial system. In addition, China has set up a set of green financial standards and evaluation system to guide financial institutions and enterprises to be more transparent and sustainable in environmental risk management and green investment.

The emergence of green finance has brought a certain impact on the real estate industry, a pillar industry of China's economy. At present, many people in China, especially in some central cities, have speculated on housing prices. This behavior has led to a speculative increase in the real estate market, a rapid rise in housing prices, an excessive consumption of resources, and the aggravation of social inequality. This conflicts the concept of sustainable development and environmental friendliness advocated by green finance. At the same time, the investment in green finance will squeeze out a part of the real estate market share. By directing investment in real estate to the flow of green buildings and energy conservation technologies, green finance can also promote the efficient use of resources and sustainable environmental development.

Therefore, it is of great significance to deeply study the impact of green finance on real estate. By discussing the application of green finance in the real estate field, effective ways can be found to reduce the consumption of resources in the real estate industry, improve the energy efficiency of buildings, promote the development of green buildings, and guide China's real estate market towards the direction of sustainable development in practice. This is of great practical significance for realizing the dual goal of economic growth and environmental protection.

Previous scholars have discussed a wide range of factors affecting real estate, including the monetary system, consumption level and so on. The related discussion on green finance also focuses on the impact of the ecological environment and some green products on the financial market. No scholar has specifically discussed the impact of green finance on real estate as a whole.

Therefore, in order to ensure that the regression results are not affected by the economic turbulence during the epidemic period, this paper selects the relevant data of provinces and cities from 2008 to 2020 to regression the fixed effect model panel, conducts a study on the real estate price, and draws the following basic conclusions: green finance has a negative impact on the real estate price.

The marginal contribution of this paper is the use of various green coefficient to build green financial index, to explore the influence of green finance as a whole, and make up the green finance influence the lack of the real estate research, to solve the current real estate investment market proportion and rising prices put forward new slow problems.

The chapters of this paper are arranged as follows: the second part is the literature review, the third part is the experimental design and data, the fourth part is the empirical results, the fifth part is the robustness test, and the sixth part is the conclusion and policy suggestions.