The Impact of Urbanization on Green Finance Development in Chinese Cities

This study explores the intricate relationship between urbanization dynamics and the development of green finance initiatives in Chinese cities, addressing a critical gap in the existing literature. Utilizing a pragmatic research paradigm, we employed robust quantitative methodologies, including descriptive statistics, correlation analysis, and Ordinary Least Squares (OLS) regression analysis, to evaluate data from 100 urban centers across China. Our empirical model examines how urbanization influences green finance investments and environmental outcomes, highlighting supportive policy environments' mediating role. Key findings reveal a positive correlation between urbanization rates and the development of green finance initiatives, alongside a reciprocal relationship that enhances effective policy formulation. This study contributes original insights into the complexities of urbanization and green finance, demonstrating that green finance alleviates negative environmental impacts and promotes economic resilience. The findings provide practical implications for policymakers, financial institutions, and urban planners, emphasizing the necessity for integrated strategies that foster sustainable development in rapid urban growth. JEL codes: O18, Q28, R58, H76