How does blockchain technology affect the development of green finance? Theoretical analysis and empirical verification

Facing the problem of a lack of endogenous incentive mechanisms for the development of green finance, we regard blockchain technology as an institutional technology and elevate it to the height of governance mechanisms. Using a dynamic stochastic general equilibrium (DSGE) model framework, we compare and analyze its effects with traditional supportive policies such as fiscal subsidies. The modeling simulation results show that the blockchain green finance platform model is conducive to better promoting the development of green finance. Subsequently, we construct a financial technology development index centered on blockchain technology and empirically test the impact of blockchain financial technology on the level of green finance development from both the supply and demand sides. The results show that the development of blockchain financial technology has significantly increased the scale of green credit issuance and effectively eased the financing constraints of green enterprises, reducing financing costs. We conduct an economic analysis of the impact of blockchain financial technology on the development of green finance, providing a feasible path for the integration and development of green finance and financial technology. © 2023. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.