Abstract
Increasing environmental degradation has forced policymakers to include sustainability in the economic growth agenda. Green finance has attracted the attention of policymakers and the industry, but the impact of green finance on social and environmental sustainability has not been confirmed. This study uses the panel data of 34 Chinese provinces to investigate the relationship between green finance and environmental degradation. The fuzzy set qualitative comparative analysis (fsQCA) method is utilized to analyze the mixed effect of green finance on CO(2) emissions. These factors include green innovation, green insurance, green investment, and industrial structure. The results show that exogenous demand factors, including green insurance and industrial structure, have auxiliary effects when endogenous demand factors, including green investment and green innovation, exist as the core antecedent conditions among green finance and environmental degradation. Finally, the policymakers should encourage financial technology to actively participate in environmental protection initiatives that promote green consumption while minimizing the systemic risks caused by financial technology.