Abstract
The institutional construction of green financial bonds in China began at the end of 2015 and developed rapidly in 2016 and 2017. Based on the background of sustainable development, this article explores the implementation significance of the green bond policy from environmental protection, financial development, and technological innovation. Specifically, the incentive effects of the green bond policy on the technological innovation of enterprises with different levels of pollution are investigated in terms of the difference-in-differences model. According to the analysis, after the implementation of the green bond policy, there is a greater difference in the innovation capabilities between the medium- and high-pollution enterprises and the low-pollution enterprises. Solvency has a negative impact on innovation incentives, profitability and enterprise size have a positive impact on innovation incentives, while development capabilities and age have little effect. Finally, suggestions are put forward to improve the incentive mechanism of green bonds and establish the policy effect evaluation system, so as to promote the sustainable development of enterprises and the high-quality development of green bonds. These results shed light on the significance of green bond policy implementation and point out the direction of enterprise transformation and upgrading in the future.
Highlights
The industrial sector is a major polluter [1], which is imperative to promote green technology, improve pollution control technology and strengthen research and development of clean technology
As one of the important green financial measures, green bonds are marketable securities issued by legal persons of financial institutions, which raised funds to support green industries, and repayment of principal and interest as agreed
As Tom illustrates, the green bond market needs to encourage its investors to buy green bonds by easing the insurance industry's solvency, as one survey shows that insurers have $900 billion of investable assets within them, but they are hampered by solvency
Summary
The industrial sector is a major polluter [1], which is imperative to promote green technology, improve pollution control technology and strengthen research and development of clean technology. Green bond policy can make full use of financial risk management technology and promote green investment with the help of market mechanism, government control and social supervision. When the external pressure generated by green bonds affects the survival and development of the company, it will stimulate the company’s strong impulse for independent innovation, prompt the company to increase investment in research and development, and commit to the promotion and application of key environmental protection technologies. An in-depth discussion on whether green bond policies will affect corporate innovation decisionmaking is needed to address Whether it can promote corporate technological adjustments, and identify policy deviations in the implementation process and understand the underlying mechanism is of great significance for evaluating the effectiveness of incentives. This paper will conduct an empirical analysis based on the difference-in-differences model to investigate the incentive effect of green bond policies on the technological innovation of enterprises with different pollution levels, and provide a reference for further promoting green development
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
