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Environmental science and pollution research international
Feb, 2023;30 (10): 27948-27964.

Does green finance promote green innovation? Evidence from China.

Xiaohui Xu
Author Information
  1. Xiaohui Xu: School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou, 310018, China. xuxiaohui@zstu.edu.cn.
PMID: 36394808 DOI: 10.1007/s11356-022-24106-1

Abstract

The green finance sector is key to accelerating the green transformation of economic structures and promoting green economic growth. However, understanding how to effectively combine green finance and green innovation is still in the exploratory stage. Using the implementation of the Green Credit Guidelines (hereinafter Guidelines) in 2012 as a quasi-natural experiment, we examine the causal relationship between green finance and green innovation. According to our findings, the green innovation performance of green credit-restricted industries improved significantly after the implementation of the Guidelines, although quality improvements of green innovation were not evident. This was a result of improved management efficiency and investment efficiency. Additionally, the Guidelines appear to have a more positive impact on green innovation for firms with lower levels of managerial short-termism or firms in regions with stronger environmental law enforcement. Green innovation can significantly enhance the environmental and social performance of a company.

Keywords

Difference in difference Green Credit Guidelines Green finance Green innovation

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Grants

  1. 22NDJC015Z/Zhejiang Provincial Philosophy and Social Science Planning Project
  2. 2022C35080/Zhejiang Province Soft and Science Project
  3. 20NDJC225YB/Zhejiang Provincial of Philosophy and Social Science Planning Project
  4. 2021C35020/Zhejiang Province Soft and Science Project
  5. 2022C35088/Zhejiang Province Soft and Science Project

MeSH Term

China
Economic Development
Industry
Investments
Quality Improvement
Journal Article

Word Cloud

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