Development Of Green Finance Research Articles

How does green finance affect the innovation performance of enterprises? Evidence from China.

"green" + "innovation" has become a new concept of development. The integration of the two can bring win-win for the environment and economy. This paper selects the annual data of 14309 A-share companies in Shanghai and Shenzhen Stock Exchange from 2012 to 2020 as the research sample. And it uses the two-way fixed effect model to empirically test the impact of green finance on enterprise innovation performance. The study found that the development of green finance can promote the improvement of enterprise innovation performance. The analysis of influence mechanism shows that the development of green finance can reduce the financing constraints of enterprises, and then improve the innovation performance of enterprises; the development of green finance can increase the R&D investment of enterprises, and then improve the innovation performance of enterprises; green finance development can increase corporate investment in environmental protection, which in turn can improve corporate innovation performance. The results of heterogeneity test analysis show that compared with the western region, private enterprises, small and medium-sized enterprises, and high energy consumption and high pollution enterprises, the development of green finance in the central and eastern regions, state-owned enterprises, large enterprises, and non double high enterprises has more obvious role in promoting enterprise innovation performance. Therefore, the government should issue relevant policies and actively promote green finance policies that can help improve environmental and economic issues.

Research on the factors influencing the development of green finance in Beijing, Tianjin and Hebei under the perspective of ecological environmental protection

In today's world, the contradiction between people and the ecological environment is becoming more and more acute. Green finance is an effective method to resolve the contradiction between economic growth and ecological environment pollution, which has been widely recognized by all countries. This paper analyzes the level of green financial development in the Beijing-Tianjin-Hebei region through an analytical model of green financial development influencing factors constructed by simulation, combined with ecological environmental protection, and identifies the main influencing factors affecting the level of green financial development in this region. In addition, the realization path proposed in this paper from the perspective of government-led green financial development is, firstly, to improve green finance-related standards, assessment system and green financial legal system. The second is to implement green financial regulation and improve the driving force of green policy and market integration. The research results show that the comprehensive measurement score of green finance development level in Beijing, Tianjin and Hebei region shows a steady increase between 2016 and 2020, among which the comprehensive measurement score of green finance development level in Beijing is as high as 72.13 in 2020, an increase of 17.32%. It provides theoretical guidance for the improvement of green financial public policies in Beijing, Tianjin and Hebei regions.

Can green finance development abate carbon emissions: Evidence from China

Green finance has been treated as an important tool in the transformation process to low-carbon economy; however, it still remains a question whether the development of green finance could offer carbon savings, or inversely lead to more carbon debts. Based on panel data of 30 provincial administrative regions during 2008–2019, we use the fixed-effect model to examine the carbon emissions reduction effect of green finance. The empirical results suggest that green finance development exerts significantly negative influence on carbon emissions by energy consumption structure optimization and industrial structure upgrading. Besides, we also find that compared with green bond, green credit has a more pronounced carbon emissions reduction effect at present. Furthermore, the heterogeneity of green credit types and regional heterogeneity are both discussed in this study. It is indicated that the green credit oriented for energy conservation and environmental protection could restrain the carbon emissions more significantly while the green credit oriented for clean energy cannot contribute to cutting down carbon emissions as remarkably as other types of green credit. As for regional heterogeneity, results suggest that green finance could curtail carbon emissions in the central and western regions, while this effect is not significant for provinces in the eastern part of China. Thus, the green finance policies should be implemented based on regional characteristics in order to abate carbon emissions more effectively.

Analysis of the carbon emission reduction effect of Fintech and the transmission channel of green finance

Using provincial panel data from 2011–2020, this paper examines the impact of Fintech development on carbon emission intensity and the transmission channel of green finance in China by building multiple regression econometric models. It is found that Fintech development significantly reduces carbon emission intensity. The mechanism analysis of green finance as a transmission channel indicates that Fintech reduces carbon emission intensity by promoting the development of green finance. Using quantile regressions, it is verified that for different carbon emission intensity levels, the effect of Fintech is stronger at higher quantiles. Heterogeneity analysis shows that there is heterogeneity in the impact of Fintech on carbon emission reduction in the Eastern, Central and Western regions.

Does the green finance development and renewable energy affect the economic recovery in Asian economies

This study examines how renewable energy and green finance affect energy consumption in Asian economies by analysing how they affect power consumption in both unpredictable and asymmetrical ways. We use the NARDL and multiple linear regression algorithms to gather information from 1986 to 2018. The findings show that China (0.65), India (0.57), Pakistan (0.54), Bangladesh (0.48), Indonesia (0.37), and Russia (0.38) have the greatest variation in green financing growth in Asia (0.36). Russia had the highest number of persons per capita in 2020 (0.55), followed by China. According to empirical investigations, the biggest obstacle to green energy effectiveness is the shortage of corporate and public sector investments in the energy market to strengthen supply security, enhance electricity availability, and encourage ecologically friendly productivity expansion. The results show that the implementation of renewable energy and energy conservation in Asian countries has a bright but hazardous potential.

Study on the spatial spillover effect and path mechanism of green finance development on China's energy structure transformation

Green finance is essential for supporting the development of green, low-carbon projects and preventing environmental and climate financial risks. Investigating and studying whether and how it can aid in implementing energy transformation is worthwhile. This paper uses 30 provinces from 2004 to 2020 as research samples, the entropy method to construct a green finance measurement system, and the weighted multidimensional vector angle index method to construct an energy low-carbon transformation index based on the actual situation of green finance in China and the existing theoretical research basis. We systematically analyzed each province's spatiotemporal evolution characteristics of green finance and energy structure transformation by constructing a fixed effect model, a GMM model, an intermediary effect model, and a spatial Dubin model. We empirically tested the effect direction, internal mechanism, spatial spillover, and regional heterogeneity of green finance development (GFD) on energy structure transformation (EST) to investigate the low-carbon transformation of energy structures. The findings indicate the following:(1) Green finance plays a positive role in promoting the transformation and development of China's energy structure. (2) The influence of green finance development on the transformation of China's energy structure has significant spatial spillover, exhibiting “local and neighborhood” reciprocity. Through the spatial spillover effect, green finance can encourage the low-carbon transformation of local energy structures and increase the level of low-carbon transformation in neighboring areas. (3) The improvement of the level of green technology innovation and the intensity of environmental regulations are essential channels for green finance to support the low-carbon transformation of the energy structure, and regional heterogeneity will alter this transmission mechanism. The findings of this study provide empirical evidence for the vital role of green finance in achieving the double dividend of economic growth and low-carbon emission reduction. This study provides a new perspective for constructing a green finance system and advancing the dual-carbon objective and a resource for formulating effective regional energy transformation policies.

Impact of environmental information disclosure on green finance development: empirical evidence from China

Impact of environmental information disclosure on green finance development: empirical evidence from China

Promoting green investment for renewable energy sources in China: Case study from autoregressive distributed Lagged in error correction approach

Green finance development is critical for balancing economic growth and environmental conservation. Global economies implement rigorous environmental rules to limit climate change, stimulating the shift to renewable energy by promoting green investment due to more excellent perception and mounting demands from concerned parties—using 27,042 observations from China's Shanghai and Shenzhen stock exchanges for A-share listed businesses. On data from 1990 to 2019, this research uses a cross-section augmented autoregressive distributed lag (ARDL) framework. The findings show that enforcing strict environmental standards is one of the most effective strategies for Chinese companies to reduce carbon emissions using green financing. Furthermore, renewable energy has a negative correlation with carbon emissions. Our research reveals that renewable energy regulations increase energy businesses' total factor productivity and that the impact of policy implementation lasts for some time. Our results hold up to a variety of green finance promotion approaches. According to further research, the boosting effect of renewable energy policy implementation may be eclipsed by its impact on the allocation of resources efficiency and technical innovation. Furthermore, the influence of renewable energy legislation on total factor productivity varies due to changes in company type, external environment, and geographical position. Renewable energy initiatives, for example, tend to reduce total factor productivity in state-owned businesses, large-scale businesses, and businesses with a high ownership concentration.

The Impact of Green Finance on High-Quality Economic Development in China: Vertical Fiscal Imbalance as the Moderating Effect

The vigorous development of green finance has become a national strategy in China. Green finance is gradually becoming a key driver of high-quality economic development and a key area of concern for China’s economy and ecological environment. Based on the panel data of 30 Chinese provinces from 2001 to 2019, we analyzed the impact and mechanism of vertical fiscal imbalance (VFI) and green finance (GF) on high-quality economic development (HQD) and then used the fixed-effect model and spatial Durbin model for empirical testing. We found that GF can significantly contribute to HQD, but VFI has a negative moderating effect in contrast to the positive effect of GF on HQD. This negative moderating effect is strongest in the central region. According to the analysis of the spatial econometric model based on geography, economy, and the nested spatial weight matrix, we found that the local GF has a negative spatial transmission effect on the HQD of other regions. Therefore, it is recommended that the coordinated development of green finance among regions be promoted, while affairs and expenditure responsibilities be reasonably distributed between the central and local governments to drive HQD effectively.

Does industrial structure changes matter in renewable energy development? Mediating role of green finance development

Green financing development mediated the interaction between industrial structure changes and renewable energy growth in China from 2000 to 2021. The research examines whether green financing may boost renewable energy development via industrial structural modifications. The research uses an econometric models to explore how green funding affects industrial structural changes and renewable energy development. Industrial structural changes boost renewable energy growth in China. Green finance development mediates the relationship between industrial structure changes and renewable energy development, suggesting that green finance can enhance the positive effect of industrial structure changes on renewable energy development. The research also reveals that green funding has a more significant long-term impact on renewable energy development. Industrial structural changes have a more significant impact on renewable energy development in economically developed areas. The results are significant for developing country policymakers promoting sustainable energy development via trade and fiscal decentralization.

Empirical analysis of the influence mechanism of green finance on carbon emission reduction

As the global climate problem continues to intensify, environmental governance issues have been attached importance by all countries. Building a complete green finance context system is an important means to reduce carbon emissions. In the context of the green, low-carbon and circular economy system, the state focuses on the development of green finance and green technology innovation, and takes the promotion of high-quality development of green finance as the primary goal. The realization of carbon emission reduction requires the support of the capital chain provided by green finance, so this study is of great significance. Therefore, the data of 30 provinces and cities in China (except Xizang) from 2010 to 2020 are used to build a panel data model systematically. Through the analysis of the intermediary effect model, the robustness test of the analysis results is carried out, and the correlation between green finance and carbon neutrality is proved by empirical analysis. The results show that the level of green finance development reduces carbon emissions with technological innovation as the intermediary factor.

Examining the Domain of Green Finance Through Bibliometric Research Analysis of 22 Years (2000–2022): An Analytical Retrospective

Green finance has evolved as a concept aiming to integrate environmental protection and economic profits. Growing global concern towards climate change, greenhouse gas emissions, industrial pollution control, waste management, and environmental protection has caught the attention of countries and policymakers towards innovative financial products and services that are used to address a broader range of environmental concerns. Financial instruments such as green bonds, green stocks and loans effectively guide capital investment towards environment-friendly projects and promote the United Nations’ sustainable development goals. Thus, green finance is considered a compelling concept that plays a vital role in promoting sustainability. The authors used the Scopus database to perform a bibliometric review of green finance from 2001 to 2022 to determine the current trend and progress in the field. The article presents a thorough bibliometric and temporal analysis that provides inputs that other researchers on this topic have not evaluated. VoS Viewer and Biblioshiny. The software was used to visually analyse the data and identify patterns of co-occurrences and prominent research themes. The graphical and systematic mapping illustrates the evolution in publications over time and identifies areas of current research interests. The findings show that the research on green finance has gained momentum from 2014 onwards. The analysis provides a comprehensive overview of the green finance-related research, which will help the researchers and policymakers to examine better the trends and future direction of the development of green finance.

Does Green Finance Promote Green Technology Innovation in China

This paper selects the panel data of 30 provinces in China from 2008-2019 (due to the lack of data in some regions, this paper excludes the data of Tibet, Hong Kong, Macao and Taiwan), uses data envelopment analysis to calculate the level of green technology innovation in China, and constructs a spatial Dobbin model on this basis to explore whether the development of green finance can promote the improvement of the level of green technology innovation in China. The empirical analysis shows that: first, green finance will promote the improvement of the level of green technology innovation in the region; Secondly, green finance does have a spatial spillover effect on green technology innovation, and the development of green finance in this region will restrain the development of green technology innovation in neighboring areas to a certain extent.

How does climate risk matter for corporate green innovation? Empirical evidence from heavy-polluting listed companies in China

Chinese heavy-polluting companies have been facing enormous challenges in responding to climate risk and energy transformation. This paper uses panel regression model and investigates the impact of climate risk on corporate green innovation in Chinese heavy-polluting listed companies from 2011 to 2020. The empirical results show that climate risk adversely affects green innovation in heavy-polluting companies, and this effect persists throughout a series of robustness and endogeneity tests. Climate risk may affect corporate green innovation through decreasing R&D investment, lowing resource allocation efficiency and increasing company risk. Climate risk has a greater negative impact on mid-western, state-owned and large-size heavy-polluting companies, but can be mitigated by the development of green finance, digital finance and marketization. These findings may help heavy-polluting companies fully utilize existing resources, policies, and channels for green innovation and mitigate climate risks.

Financial Development and Environmental Pollution Control - An Analysis of Intermediary Effect Based on Technological Innovation

Abstract Based on the rapid development of green finance and the panel data of 30 provinces in China (excluding Tibet, Taiwan, Hong Kong and Macao) from 2007 to 2020, to deeply discuss the relationship between financial development (FD), technological innovation and environmental pollution (EP) control is the centre of this article by using panel fixed-effect and intermediary effect model. The influence of FD on EP is tested by building a benchmark regression model. In addition, the intermediary effect model is adopted to explore how FD affects EP control through technological innovation mechanism. The conclusions show that China’s FD can effectively promote regional EP control on the whole, and FD can improve EP through technological innovation mechanism, but there is significant regional heterogeneity: compared with high government intervention areas, FD can promote EP control through technological innovation in low government intervention areas. Therefore, it is suggested that all regions promote the construction of financial infrastructure, upgrade the level of regional financial marketisation, speed up the realisation of regional technological innovation and EP control. This work is conducive to the formulation of appropriate government policies to promote the improvement of the financial system and the establishment of innovative mechanisms, and the reasonable reduction of government intervention and the improvement of the efficiency of financial resource allocation based on the needs of financial market players.

An Empirical Study on Green Finance and High-quality Economic Development in Yangtze River Delta Region

As a "lubricant" and "booster" for green development, green finance plays an important role in promoting high-quality economic development. As one of the most active regions in economic development, the Yangtze River Delta region leads the country in the development of green finance. This paper takes the Yangtze River Delta region as the research object, uses the relevant data of green finance and high-quality economic development from 2010 to 2021, uses the coupled coordination model to analyze the coordinated development of green finance and high-quality economic development in the Yangtze River Delta region, and uses the grey correlation model to analyze the correlation degree of the two systems. It provides an empirical basis for the formulation of green finance policies in the Yangtze River Delta.

Role of green finance and regional environmental efficiency in China

High-quality green finance development and environmental efficiency are made possible through economic growth. This study examines the factors affecting investments in green finance and regional environmental efficiency in China from 2008 to 2020, using the GMM model. Results show that green financing positively impacts energy usage restructuring at the national level. However, the impact is limited, despite positive coefficients between financial growth, energy prices, and energy usage patterns. In the central area, green financial development benefits energy usage structure, while in the eastern region, economic and industrial development have little effect. The study provides strategic recommendations for China's green funding to support the adaptation of energy use structures.

Development of green finance, tourism, and corporate access to bank loans in China.

The fundamental purpose of this study is to conduct an inquiry into the efficacy of China's green credit strategy, and that is the core focus of the investigation. As part of this study, we investigate whether or not businesses that increase the environmental transparency of their operations to the outside world and green innovation within their operations are rewarded with more favorable bank loan terms as a direct result of receiving green credit. Specifically, we look at whether or not these businesses are awarded green credit. Our hypothesis is put to the test by using difference-in-differences (DID) model and the data that was collected from a sample of 1086 publicly traded Chinese manufacturers over the years 2012 to 2017. According to the data, businesses that improve the quality of their environmental disclosures do not receive an increase in their access to corporate finance. On the other hand, businesses that introduce new environmentally friendly (tourism) breakthroughs do receive an increase in their access to corporate finance. Our research demonstrates that the root of the problem is corporate greenwashing, a practice that is common in regions with low environmental disclosure standards and makes it more difficult for businesses to obtain new loans. This practice is popular in areas where environmental disclosure standards are lax. This is the most basic explanation for why the phenomena occur in the first place. Our findings contribute to the literature on themes including green credit policy, corporate green innovation, environmental transparency, and green financing and tourism, all of which are useful to corporations, governments, and financial institutions.

Evaluation and Research on Urban Carbon Peak Development in China from the Perspective of Green Finance

In September 2020, China first proposed carbon peak, and China's green finance development ushered in new development opportunities. Based on the important influence and role of cities in the national carbon emission reduction work, and under the background of green finance, this paper evaluates and studies the carbon peak development of pilot cities of low-carbon economy in China. This paper first takes low carbon pilot cities as samples, incorporates green finance into the influencing factors of carbon peaking, and constructs indicators of urban green finance development degree through entropy method. Secondly, factor analysis is used to summarize the relevant factors that affect the carbon peak development process of pilot cities, and a comprehensive ranking and evaluation of factor scores are given for the selected sample cities. Once again, by using cluster analysis to understand the types, characteristics, and differences of carbon peak trends in sample cities, local governments can design and carry out differentiated carbon peak actions to promote energy conservation and emission reduction in pilot cities. Finally, suggestions and suggestions are proposed to accelerate China's efforts to achieve carbon peak targets.

Development and evaluation of Islamic green financing: A systematic review of green sukuk

The threat of the global climate crisis demands improvement and adjustment from various sides, including the financial sector. Islamic finance responds to environmental responsibility by presenting environmentally friendly financing products in green sukuk. This study aims to show the development trend of the number of publications in green sukuk and systematize the results of studies that explain the development and evaluation of the emergence of green sukuk investments. This study analyzed 15 publications on green sukuk during the 2016-2022 years indexed by the Scopus database. As for methodology, the descriptive analysis was used to explain the green sukuk data quantitatively; the synthesis analysis was used to describe data based on four directions (the development of models (10 sources), opportunities (12 sources), challenges (12 sources), and evaluations of green sukuk (10 sources). Preferred Reporting Items for Systematic Review and Meta-Analyses standard were used to choose samples for this investigation. The green sukuk challenge is dealing with the sukuk market after the pandemic. Several evaluation findings regarding managing commitment from the government and investors for the renewable energy sector and efforts to provide low-cost sukuk financing and risk minimization are found. Green sukuk demands efficient management to be more viable, competitive, and attractive to investors if the operational area supports it. Green sukuk projects face expanding green funding, global climate financing, managing renewable energy, and validating greenhouse gas emissions. The green stock market reaction requires coordination amongst economic subsectors.