Unlocking the effects and optimization path of financial support for improvement in environmental quality and rural revitalization development: an empirical analysis based on provincial data of Shaanxi province

Abstract

This study establishes an economic financial support model for the improvement of environmental quality through the development rural revitalization based on the extended Cobb-Douglas production function. Using statistical data from Shaanxi Province, China, from 2004 to 2019, a vector autoregressive (VAR) model is used to empirically analyze the development effect of financial support for rural revitalization and to give the focus points and optimization paths for financial support for environmental quality, rural revitalization and sustainable development. The research results show that financial support plays an active and long-term role in improving environmental quality and promoting rural revitalization and sustainable development. Specifically, the effect of financial instruments in supporting rural revitalization and sustainable development is continuous. In the insurance system, increasing the scale of agricultural insurance support and expanding the coverage of agricultural insurance are key to improving environmental quality and promoting rural revitalization and sustainable development. Therefore, financial policy makers should improve the targeting of financial instruments to provide the right guidance for improving the quality of rural environment and enhancing rural economy, so as to ultimately realize rural revitalization in China.

Keywords: Economic growth; Environmental quality; Financial support; Rural revitalization strategy; Sustainable development.