Research on the impact of green insurance on regional environmental quality: evidence from China

Green insurance ( GI ), as an innovative product integrating environmental protection and the financial sector, not only contributes to improving regional environmental quality ( EQ ) but also enhances corporate environmental risk management and awareness, driving the flourishing development of green finance and the environmental protection industry. Therefore, understanding the relationship between GI and EQ is crucial. This article delves into the mechanisms through which GI influences EQ , proposing a hypothesis that suggests an inverted “U” shape impact. Subsequently, based on panel data from 30 provinces in China spanning from 2000 to 2021, nonlinear regression models and threshold regression models were constructed to test the hypothesis. The research findings indicate: (1) Results from the fixed-effects regression model demonstrate that the impact of GI on China’s EQ follows an inverted “U” shape. (2) Results from the threshold regression model also reveal an inverted “U” shape impact of GI on China’s EQ , with a threshold value of 2.196. (3) Economic level and industrial structure exhibit significant inhibitory effects on EQ improvement. Technological level and environmental regulations demonstrate notable promotional effects. Population size shows no significant impact on EQ improvement. The study identifies a nonlinear effect of GI on EQ improvement, surpassing existing linear effect research, deepening the understanding of its impact on EQ , and contributing to the enhancement of regional EQ .