Does the pilot zone for green finance reform and innovation policy improve urban green total factor productivity? The role of digitization and technological innovation

High-quality urban finance and economic development are still facing high pollution, high emissions, and low green production efficiency problems. However, as China's recent Pilot Zone for Green Finance Reform and Innovation (PZGFRI) policy has been playing an important green development role, it is necessary to evaluate its effectiveness. Based on 2011 to 2020 panel data from 282 Chinese cities, a dynamic spatial difference (DSDID) model was constructed to explore the local and spatial spillover effects of the PZGFRI policy on green total factor productivity (GTFP) in Chinese cities. It was found that: (1) the PZGFRI policy promoted GTFP in the pilot cities and exerted a positive incentive effect on the GTFP in neighboring cities through spatial correlation policy spillovers; (2) heterogeneity analysis illustrated that the PZGFRI policy had a more significant GTFP promotional effect in small and medium-scale cities, western regions, and regions with weak innovation abilities; and (3) the mechanism test found that digitization and technological innovation played moderating and mediating roles. This study enriches research content on the PZGFRI policy and provides theoretical empirical support for the extension of the PZGFRI policy to other cities in China.