Micromechanisms and dynamic effects of green finance driving ecological product value realization: A NK-DSGE approach

Ecological product value realization is crucial for sustainable development, which is of strategic significance for environmental protection and green economic development. This paper focuses on green finance as the core driving factor and systematically evaluates the micromechanism and dynamic effect of green finance driving ecological product value realization. Accordingly, a New Keynesian-Dynamic Stochastic General Equilibrium (NK-DSGE) theoretical model that introduces green financial agents is constructed. The results of the study demonstrate that (1) green finance plays a crucial role in the supply, pricing, and demand of ecological products, thus ensuring ecological product value realization. (2) Green finance has a positive effect on ecological product value realization, which is mainly reflected in improving the employment level of residents, influencing the demand for short-term ecological commodities, and accelerating the overall scale of investment in ecological projects. (3) Green finance leverages the amount of green credit, the interest rate on household savings, and the interest rate on green credit as transmission tools, thereby affecting the variables associated with the ecological product value realization. (4) Monetary policy moderates the economic effects of green finance in driving the ecological product value realization, which prevents ecological products from overcapacity, maintains their price stability, and curbs their cost increase.