Green Finance Research Articles

Impact of Digital Villages on Agricultural Green Growth Based on Empirical Analysis of Chinese Provincial Data

The construction of digital villages has progressed in tandem with the transformation of traditional production methods, offering new perspectives for agricultural green growth and sustainable development. This study employs the entropy value method alongside the super-efficient global SBM (Slacks-Based Measure) mixed function model, which assesses efficiency by accounting for both inputs and outputs, thereby facilitating a comprehensive evaluation of agricultural green growth. This methodology facilitates the examination of the correlation between digital villages and agricultural green growth, as well as the influence of digital villages on this growth. Furthermore, the utilization of financial resources is employed as a mediating variable to elucidate the mechanism of action. The utilization of green finance and agricultural insurance can be facilitated by the establishment of digital villages, and that has been shown to promote agricultural green growth. Additionally, the promotion of agricultural green growth by digital village construction is stronger in middle-altitude regions, non-grain-producing regions, and regions where the digital literacy of the rural labor force is higher than average, as well as areas where the use of agricultural film is higher than average. Accelerating the construction of digital villages and promoting the utilization of rural financial resources while adapting the digital village development to local conditions are crucial for effectively fostering agricultural green growth and sustainable agricultural development.

The Impact of National Big Data Pilot Zones on the Persistence of Green Innovation: A Moderating Perspective Based on Green Finance

Enhancing the persistence of corporate green innovation is crucial for promoting sustainable societal development. As big data technologies and related policies advance, digitalization emerges as an effective enabler of green innovation in enterprises. This study, grounded in resource-based theory and corporate ecology theory, examines the impact of national-level big data pilot zone reforms on the persistence of corporate green innovation, utilizing data from China’s A-share-listed companies from 2011 to 2021. It also explores the moderating effect of green finance development. Empirical results indicate that (1) the implementation of national-level big data pilot zones positively influences the persistence of green innovation, with robustness and endogeneity tests confirming these findings. (2) The development of regional green finance positively moderates this relationship. (3) A mediation analysis reveals that national-level big data policies enhance innovation persistence by alleviating financing constraints, promoting talent aggregation, and facilitating industrial upgrading. (4) The heterogeneity analysis shows that the positive impact of these reforms is more pronounced in non-state-owned, non-heavy polluting firms, those receiving high subsidies, and in regions with stringent environmental regulations. This study offers a novel theoretical perspective on and empirical evidence for digital transformation from the angle of national policy, supporting societal green development and contributing to policy enhancement aimed at achieving sustainable growth.

Impact of green technology and green finance on carbon neutrality from the quantile and dynamic perspectives

Impact of green technology and green finance on carbon neutrality from the quantile and dynamic perspectives

Effects of Green Financing Drives on the Performance of DSE Listed Banks in Bangladesh

All commercial banks must take green financing drives to promote environment-friendly projects in their mainstream investment. Inherently, all commercial banks are encouraged to make a profit, but exploring the relationship between GF and bank performance is necessary. This article categorizes the data regarding different types of green financing such as renewable energy, alternative energy, energy efficiency, liquid waste management, recycling and manufacturing of recycling products, Hybrid Hoffman Kiln (HHK), environment-friendly green structures, green agriculture etc. The study feeds an inclusive overview of the GF situation with a particular emphasis on renewable energy (RE), energy efficiency (EE), liquid waste management (LWM), recycling and manufacturing of recycling goods (RRG), producing environment-friendly bricks (PEFB), and green ecology friendly establishments (GEE) and its impact on bank profitability in Bangladesh. This research collects secondary data from related published articles, Bangladesh Bank annual reports, quarterly reports, sustainability reports, other commercial banks' reports, different proceedings, ADB reports, World Bank reports, and national newspaper reports from 2014 to 2023. MS-Excell-2016, with SPSS software version 25, was applied to conduct the research. According to the results of the study, GF has a significant impact on bank profitability. Regression Model 1 indicates that energy efficiency (EE) and the recycling and manufacturing of recycling goods (RRG) have the most positive impact on bank performance (ROA and ROE). Regression Model 2 found that renewable energy (RE) impacts bank performance. However, the main challenge is creating awareness among the bankers, BB, other regulators, and the community. The possible future essence of this study is to convince bankers and policy planners that GF can be the best solution for surviving in the competitive market, maximizing wealth, and improving bank profitability.

The emergence of green finance a conceptual framework for environmental sustainability: innovation viewpoint

Background of the study This study intends to contribute to the continuing discussion about green economic growth by objectively investigating the consequences of clean energy generation, cutting-edge green practices, and ethical business on global sustainability. This study also examines how green finance laws effectively handle the financial limitations that companies face when pursuing green innovation. Green finance enables the development and implementation of sustainable business models, investments, trade, economic, environmental, and social projects through the effective utilization of financial resources. Methods This article offers a complete evaluation of the current state and advancements in green finance research using a mixed-methods approach, which includes bibliometric and qualitative analysis. We analysed a big dataset of research papers after entering the keywords into the Scopus database. Results This study found that green bank products include green securities, investments, climate financing, carbon finance, insurance, credit, and infrastructure bonds. Sustainability, sustainable development, investments, environmental economics, sustainable finance, green bonds, and the green economy dominate as a most prevalent theme. China has the strongest bibliometric linkages to other nations, followed by the US and UK. This study also examines whether green finance policies address firm financial restrictions while pursuing green innovation. VOS-viewer generates co-authorship-based keyword occurrence links and network maps. Conclusion Green finance strives to increase funding flows to sustainable development goals while mitigating environmental and social hazards. “Going green,” pricing, forecasting, modelling, picking the most efficient tool, and influencing investor behaviour toward environmentally friendly operations are all challenges. Environmental policies, interest rates, religion, risks, social inclusion, and banking laws all have an impact on bank green financing initiatives. The study’s main contribution is an overview of green finance breakthroughs for sustainability, which may help scholars and practitioners understand the trend and future research directions.

The impact of green finance on carbon productivity: The mediating effects of the quantity and quality of green innovation

While China's economy is developing rapidly, the problem of carbon emissions is indeed more prominent. The development of green finance is conducive to supporting environmental improvement and enhancing carbon productivity. Most of the existing literature examines the relationship between green innovation and carbon productivity from the perspectives of industrial structure, technological innovation, and economic growth. However, the mechanism by which green finance (GF) affects carbon productivity and whether there is heterogeneity remains unclear. Therefore, this study utilizes panel data from 277 cities from 2010 to 2020 and employs a mediation effect model to investigate the relationship between GF and carbon productivity. The results of the study found that GF has a positive U-shaped association with carbon productivity. The quantity and the quality of green innovation have a mediating effect on the above relationship. It may be due to the fact that GF promotes the green transformation and sustainable development of the economic structure by supporting green industry and technological innovation, which provides strong support to enhance carbon productivity. In non-resource cities, the impact of GF on carbon productivity is more obvious through improving the quality of green innovation, probably because non-resource cities have the advantages of a diversified industrial structure, stronger innovation capacity, and easier access to policy support and market mechanism support than resource cities. The quantity and the quality of green innovation in the eastern, central, and western regions all play a mediating role. The findings provide policymakers with recommendations for utilizing GF in a two-carbon environment to achieve sustainable low-carbon development.

Dynamic impact of green finance on renewable energy development: Based on scale, structure, and efficiency perspectives

Utilizing China's provincial panel data from 2003 to 2021, this paper employs a dynamic panel quantile regression model and mediating test model to investigate the dynamic evolution characteristics, type heterogeneity, and mechanism of green finance (GF) driving renewable energy development (RED) in China, considering the scale, structure, and efficiency of GF. The findings of this study are as follows. While the scale, structure, and efficiency of GF all contribute to the promotion of RED, the impact of green financial structure is particularly significant. As renewable energy continues to develop, the impact of green financial scale and green financial structure gradually diminishes, while the effect of green financial efficiency increases. In comparison to hydropower and solar power, GF has the strongest promotion effect on wind power, and the marginal effect of green financial scale and green financial structure on wind power follows a U-shaped trajectory. The driving of GF on RED is mainly through direct effect, supplemented by indirect effect. In the mechanism by which GF impacts RED, the channels associated with green attributes are relatively smooth. Based on these research conclusions, this paper offers policy recommendations aimed at enhancing RED through GF from perspectives encompassing scale, structure, and efficiency.

Does green financing promote outward FDI in enterprises? Evidence from China

In the context of sustainable development, green rules and standards have been incorporated into the international investment system. The specific advantages driving outward foreign direct investment (OFDI) by emerging market enterprises have also undergone profound changes. Green financing plays an important role in promoting green transformation and may become a new type of competitive advantage driving OFDI by firms. Based on legitimacy theory, we explore the impact of green financing on OFDI by emerging market firms. Using data from Chinese A-share listed companies from 2008 to 2021, we find that green financing significantly promotes corporate OFDI. Improving ESG levels, alleviating financing constraints and expanding production scale are the main channels. The positive effects of green financing on OFDI are more pronounced in heavily polluting industries, capital-intensive enterprises and state-owned enterprises. This study confirms the positive impact of green financing on OFDI earlier, and also provides useful inspiration and reference for emerging market countries to improve the green financial system and actively promote global green and sustainable development.

Importance of FinTech and green finance to achieve the carbon neutrality targets: a study of australian perspective

Abstract Based on Australian data from 2000 to 2022, this study examines how FinTech will influence the nation’s environmental future. The research shows that by directly intervening, FinTech-supported green finance is a chief driver of carbon reductions. This study contributes to existing literature by examine the role of Fintech and green finance in carbon neutrality targets of Australia. The complex web of interrelationships between technological and financial innovations is revealed as a factor that impacts the environment. When applied to Australia, which has its own FinTech industry and commitment to sustainable development, these results become even more eye-catching. This synergy takes global dimensions, with the research demonstrating a need to harmonize technological development and workable financial plans if environmental breakthroughs are to be made. However, the study points out to policymakers that they must foster a nurturing environment for digital financial innovations, develop stronger regulatory mechanisms, and encourage sustainable financial products. In terms of methodology, the research uses regression and mediation analysis to reach its conclusions. This research provides empirical evidence on the critical role of Fintech in advancing environmental sustainability in Australia, highlighting its direct and mediated effects on carbon emission reductions. By demonstrating the synergistic impact of technological and financial innovations, the study offers valuable insights for policymakers to foster a supportive ecosystem for sustainable digital finance.

Green finance policies, resource allocation, and corporate social responsibility

This paper utilizes data from Chinese A-share listed companies from 2010 to 2019, using the Green Finance Innovation Pilot Zone as a quasi-natural experiment to deeply explore the impact of this policy on corporate social responsibility, and analyzes the effects of the policy from the perspectives of financing scale and financing costs. The findings indicate that the establishment of Green Finance Innovation Pilot Zones significantly promotes corporate social responsibility and affects the allocation of financial resources through mechanisms such as increasing financing costs and reducing financing scales. Under the strict regulation of the external green finance environment, companies' willingness and ability to undertake social responsibilities have significantly improved; this effect is particularly notable among secondary industry firms and high-tech enterprises.

Does green credit policy matter for corporate sustainable innovation? Evidence from China

Green finance is a powerful motivator for promoting sustainable innovation and achieving green development. Under the dual background of building a green finance system and a market-oriented green technology innovation system, this study examines the impact of the Green Credit Guidelines on the sustainable innovation of enterprises both before and after implementation. By analyzing the propensity score matching difference-in-difference (PSM-DiD) analysis of Chinese listed enterprises, we have found that the support of relevant policies actually inhibits sustainable innovation and reduces the number of sustainability-related patents. This effect is more pronounced in green credit-restricted industries, state-owned enterprises (SOEs), and eastern regions. Ultimately, we have discovered that green utility model patents, in contrast to green invention patents, are the primary indicator of the detrimental impact of green credit policy on the performance of sustainable innovation. Overall, our study broadens the understanding of the external impacts of sustainable innovation within enterprises and provides valuable insights for corporate policy makers and management professionals.

Do bank incentives matter? Evidence from the impact of green finance on corporate carbon neutrality performance

Bank incentives are pivotal to enterprises’ low-carbon transitions. Utilizing the 2021 China green finance evaluation as an exogenous shock to bank incentives, we show that increasing such incentives can significantly enhance the carbon neutrality performance of heavily polluting enterprises. Additionally, factors based on financing perspective and stakeholders’ attention moderate that relationship. The impact of bank incentives solely extends to the environmental dimension of ESG. Our results provide insights and policy implications for stakeholders and policymakers in promoting the impact of green finance.

Analyzing the Impact of Natural Resource Rents, Green Finance and Digital Finance on Environmental Quality: Evidence from Developing Countries

Analyzing the Impact of Natural Resource Rents, Green Finance and Digital Finance on Environmental Quality: Evidence from Developing Countries

Exploring the role of trade credit in facilitating low-carbon development: Insights from Chinese enterprises

As the world's largest emitter of carbon, China is proactively addressing climate change in a responsible manner. The country has set an ambitious goal of achieving the most significant reduction in carbon emission intensity globally within approximately 30 years. In light of the transition to a new low-carbon environment, it is imperative that Chinese enterprises assume a more proactive role in embracing carbon neutrality as a social responsibility. The question of how to supplement the green transformation funds that have not yet been covered by green finance has become a significant issue for Chinese enterprises seeking to achieve sustainable development and promote high-quality development. This study employs hand-collected data on companies' carbon emissions from 2018 to 2023, using the fixed effects model to conduct a comprehensive investigation of the role of trade credit embedded within the supply chain in driving the green evolution of Chinese companies and reducing their carbon dioxide emissions. The findings demonstrate that trade credit has a significant impact on reducing CO2 emissions for Chinese businesses while also enhancing their commitment to adopting greener practices, their capacity for investing in green transformation, and the quality of their green outputs. The results of the heterogeneity analysis indicate that the acquisition of trade credit exerts a more pronounced suppressive influence on carbon emissions for heavy-polluting enterprises, non-state-owned enterprises, low-supplier concentration enterprises, and maturity stage enterprises. Similarly, the supply of trade credit notably curtails the carbon emissions for non-heavy polluting enterprises, non-state-owned enterprises, low-medium customer concentration enterprises, and maturity stage enterprises. The empirical findings of this study contribute to reconciling the substantial dilemma between corporate goals for energy conservation, emissions reduction, and production growth. This research offers key insights to support businesses in achieving a gentle transition towards energy efficiency and reduced carbon footprint in line with the overarching trend of sustainable and low-carbon development.

The challenges and opportunities of green financing in Palestine from the perspective of banks

The challenges and opportunities of green financing in Palestine from the perspective of banks

Three Decades of Green Finance: The State of the Art and Way Forward

Three Decades of Green Finance: The State of the Art and Way Forward

ESG certification, green innovation, and firm value: A quasi-natural experiment based on SynTao Green Finance's ESG ratings: A pre-registered study

This pre-registered study executes the empirical design approved in the associated pre-registered report (Bai et al.,2024) to investigate the impact of environmental, social, and governance (ESG) certification on green innovation and firm value. Using the first release of ESG ratings by SynTao Green Finance as a quasi-natural experiment, the study reveals several key findings: 1) ESG certification significantly increases the quantity of green innovation while demonstrating no substantial impact on its quality. 2) the increase in green innovation quantity is primarily driven by the alleviation of financing constraints and enhanced monitoring, while the quality remains unaffected due to managerial opportunism. 3) the quality of green innovation significantly enhances the positive impact of ESG certification on firm value, whereas the quantity of green innovation does not have a significant moderating effect. These findings provide significant implications for firms aiming for green development and for emerging markets seeking to improve ESG disclosure regulations.

Clean energy challenges and innovation opportunities in Kazakhstan

Abstract Kazakhstan has pledged to transition to a low-carbon economy by implementing national policies and strategies that promote clean energy innovation. However, Kazakhstan is still falling short of its expected targets for energy transition, and there is a lack of knowledge regarding the country’s challenges and opportunities for clean energy development. Towards this end, the current study identifies and assesses the enablers and barriers related to clean energy innovation in Kazakhstan. Using the combination of SWOT analysis, survey data from 41 experts and the DEMATEL decision support tool, we evaluated the key factors affecting Kazakhstan’s clean energy innovation and their implications for energy transition. Assessment results show that the immature business environment, underpinned by technological, institutional, and socioeconomic factors, is perceived as a high-impact constraint for clean energy innovation and green finance deployment in Kazakhstan. Skilled labour shortages, high reliance on hydrocarbons and low retail energy prices are significant challenges to Kazakhstan’s clean energy innovation. The low-profit margin and high investment risk in clean energy projects are identified as transition barriers in the power and energy-intensive industries. In contrast, Kazakhstan’s endowments of resources critical for developing clean energy technologies (rare earth metals, uranium, gas) and the potential of low-carbon investments (e.g. carbon storage) are perceived as prominent enablers of clean energy innovation. Results are consistent across expert subgroups (academia, industry, NGOs, etc). Findings call for policy support to modern and attractive business environments, capacity, and human capital development. The findings can provide helpful insights for countries in Central Asia and beyond with similar socioeconomic structures that aim for a timely energy transition.

The Role of Sharia Economics in Realizing Sustainable Development in Indonesia

This study provides a comprehensive bibliometric analysis of the role of Sharia economics in promoting sustainable development in Indonesia. By examining 810 publications between 2006 and 2024, the study explores key research trends, themes, and collaborations in the literature. The analysis reveals a significant increase in research activity after 2020, with a focus on aligning Islamic finance principles with sustainable development goals (SDGs), particularly in areas such as poverty alleviation, economic growth, and green finance. Keyword co-occurrence visualizations highlight the importance of concepts such as "green sukuk," "economic growth," and "poverty alleviation," while co-authorship networks show concentrated collaboration within small research groups. The findings suggest that Sharia economics has substantial potential to contribute to SDGs, particularly through instruments like green sukuk and waqf, but greater interdisciplinary collaboration and exploration of emerging topics like technology and post-pandemic recovery are needed. These insights have significant implications for both academic research and policy-making in Indonesia and beyond.

Impact of Green Finance on High-Quality Economic Development: A Panel Data Regression

Impact of Green Finance on High-Quality Economic Development: A Panel Data Regression