Green Finance Research Articles

Nexus between green credit efficiency and strategic, business and management digital transformation–based on 114 commercial banks in China

With the expansion of green finance and the digital economy, the discussion on the evolution of green credit business and the digitalization of commercial banks have grown in prominence. However, limited research has been done on how different degrees of digital transformation in commercial banks—the main issuers—affect the way of green credit efficiency. To fill this gap, based on data from 114 Chinese commercial banks between 2010 and 2021, this paper explores the impact of digitalization on the green credit efficiency through the integration of several methodologies. The paper indicates that enhancing the digitalization, business digitization, and management digitization of commercial banks can greatly enhance the effectiveness of green credit businesses, but the impact of strategic digitization is not significant. Further analysis reveals that digitization facilitates the expansion of overall bank assets, thereby bolstering the green credit business. It also investigates the characteristics of commercial banks and the geographical distribution of their headquarters, indicating a diminished promotional impact for urban and rural banks, as well as banks in the central areas. Finally, this study contends that commercial banks ought to leverage digital resources extensively to facilitate digital transformation and bolster the advancement of green credit operations. It is also recommended that the government should implement preferential policies for regions and banks exhibiting slower developmental progress.

Does the issuance of green bonds promote green practices among peer companies? Evidence from China's listed companies

In China's green finance system, green bonds, which strive to achieve balanced development of ecological and economic goals, play a key role in promoting sustainable development. Using ESG data on Chinese listed companies from 2009 to 2022, this paper examines whether green bonds issued by companies encourage their peers to adopt green practices. And then, based on the multi-temporal Difference-in-Differences (DID) approach, this paper explores the underlying mechanisms and heterogeneous effects of this peer influence. The results show that green bond issuance has a significant positive impact on the green practices of peer companies, and its robustness has been confirmed through various tests. Peer effects are primarily driven by competition and access to information, which is particularly evident in highly competitive industries and companies with common institutional investors. In addition, the impact of green bonds issued by industry leaders or high-polluting enterprises will be greater. In order to promote sustainability in different business types and regions, specific policy implications are provided based on these insights: strengthening the green bond guarantee system, fostering market leadership, and implementing targeted regulations.

Can green finance supports improve environmental firm performance? Evidence from listed environmental firms in China

This study analyzes how green finance supports affect environmental protection firms’ economic and social performance. Furthermore, we explore how financing constraints and technological advancements mediate such relationship among the Chinese A-share market from 2014 to 2021. Findings reveal that supports in sustainable financial practices positively affect the social performance of firms, whereas an inverse U-shaped relationship exists between green finance supports and economic performance. Moreover, green finance support initiatives improve firms’ social and economic performance by lowering financing barriers and fostering innovation.

Study on the Two-Way Promotion Path of Green Financing for SMEs and Green Transformation of Urban Housing Projects in Guangdong Province in the Era of Digital Economy

Green transformation is a necessary path on the road of green development of small and medium-sized enterprises (SMEs), and it is also a top priority for implementing the concept of sustainable development. The article innovatively proposes a green transformation evaluation method for urban housing projects based on the ecological footprint theory, which clarifies the resource use of urban housing projects during the construction process through the ecological footprint calculation, clarifies their ecological deficits, and solves the reduction of their ecological footprints through the green transformation. A double-difference model is introduced to analyze the impact of SMEs’ green financing and issuance of green bonds on the green transformation of urban housing projects. The short-term market response of green bonds issued by SMEs with green financing and the environmental benefits of urban housing projects are also verified. Between 2012 and 2021, the ecological footprint of urban housing projects in Guangdong Province increased by 36,273,366 nha, an increase of 137.04%, and the reduction of ecological footprint in the planning and construction phase of urban housing projects in Guangdong Province after the implementation of the green transformation strategy totaled 10,377.85 nha. Whenever the level of SMEs’ green financing and issuance of green bonds is increased by 1%, the reduction of ecological footprint of the green transformation of urban housing projects will be increased by 1%. Transformation of the ecological footprint reduction will be enhanced by 4.059. Relying on the green financing behavior of SMEs can promote the enhancement of the short-term market effect of the enterprise, and can also effectively enhance the utilization rate of green building materials in urban housing projects, and help the green transformation of urban housing projects.

Integrating policy incentives and risk management for effective green finance in emerging markets

Integrating policy incentives and risk management is pivotal for driving the growth of green finance in emerging markets. The transition to sustainable finance necessitates an alignment between government policies and financial institutions to mitigate the risks associated with green investments. This abstract explores how policy incentives, such as tax breaks, subsidies, and regulatory frameworks, can encourage financial institutions to channel investments into green projects while addressing market-specific challenges like underdeveloped financial infrastructure and regulatory gaps. In emerging markets, the perceived risks of green investments, such as uncertain returns and regulatory volatility, often deter private sector engagement. However, integrating robust risk management strategies—including diversification, public-private partnerships, and risk-sharing mechanisms—can significantly reduce these risks, thereby enhancing the attractiveness of green finance. Additionally, government-backed incentives can lower capital costs for green projects, enabling financial institutions to provide more favorable lending terms. Regulatory frameworks that standardize green finance criteria and reporting are also critical for fostering transparency and accountability, which in turn build investor confidence. The interplay between policy incentives and risk management is further highlighted through case studies from emerging markets that demonstrate successful implementation of green finance initiatives. These examples illustrate how policy-driven support mechanisms and comprehensive risk management frameworks can unlock significant investment potential in green infrastructure, renewable energy, and sustainable agriculture. By fostering a supportive policy environment and addressing risk factors through innovative financial instruments, emerging markets can enhance green finance flows, promote sustainable development, and contribute to global climate goals. This integrated approach is essential for bridging the financing gap in green projects, ensuring that environmental sustainability is aligned with economic growth and risk mitigation.

Retraction Note: Green finance, renewable energy, and inbound tourism: a case study of 30 provinces in China

Retraction Note: Green finance, renewable energy, and inbound tourism: a case study of 30 provinces in China

Retraction Note: Paths to sustainable development in China: why green finance and green technology matter?

Retraction Note: Paths to sustainable development in China: why green finance and green technology matter?

Can green finance act as a catalyst to renewable energy deployment? Evidence from China using a spatial econometric approach

There is international consensus on leveraging green finance in renewable energy deployment because both are viewed as crucial for achieving carbon neutrality. We employ a spatial econometric approach to examine whether green finance can stimulate renewable energy uptake using energy data from 30 provinces in China for the period 2006–2020. We also investigate the moderating influence of government interventions in the form of environmental regulations and natural gas promotion. To assess the overall impact of China's inaugural green bond policy, introduced in 2015, we conduct a quasi-natural experiment combining the spatial Durbin model and difference-in-difference (DID) method. The empirical results reveal the following: Firstly, green finance can enhance renewable energy utilization, with spillover effects observed from green finance in one province to neighboring provinces. Secondly, environmental regulations and natural gas promotion have beneficial moderating effects, supporting green finance in advancing renewable energy deployment. Thirdly, a high level of implementation of green bond policy generates local and external boosts for renewable energy. These findings can inform government and environmental organizations in designing and implementing policies to expand renewable energy deployment.

Green finance and investment index for assessing scenario and performance in selected countries

Globally, countries are engaged in developing strategies and undertaking initiatives for green transitioning of the financial system and achieving net-zero targets by 2050. Green transitioning of the financial system includes boosting green finance (GF) and green investment (GI) in the country. Countries are making initiatives to develop infrastructure and a conducive ecosystem to attract green finance and investment. The present study attempts to develop a green finance and investment index to evaluate the green financing and investing scenario of 15 selected countries. The study attempts to evaluate countries on the basis of four integral dimensions viz., transparency, resilience, efficacy and efficiency. The dimensions include 29 variables, representing 11 parameters identified through a comprehensive literature review and experts' inputs. Multiple-factor analysis is applied to develop the index and rank the countries. The results show that the UK is ranked first, followed by Germany, the USA and Japan. These countries have taken initiatives to include environmental financing in the legal and regulatory framework. Among the developing countries, China is ranked seventh, followed by Mexico, Brazil and Indonesia. The results show that transparency and resilience dimensions are homogeneous to each other. Likewise, efficiency and efficacy are relatively more homogeneous to each other. Transparency plays the prominent role in developing GFI ecosystem. The study recommends that by improving transparency in regulations will positively impact the resilience of the country. Improving efficacy will result in increasing efficiency in the countries. The findings of the study contributes to the literature on quantitative analysis of green finance and investment. The results can contribute to the decision-making of the policymakers for devising an appropriate policy by strategically addressing the critical variables in each dimension. Lastly, the study can provide the foundation for analysing the green finance and investment ecosystem and the performance of the countries over the period of time.

Role of green finance and higher education in fostering the sustainability and energy transition practices

This paper offers a qualitative analysis of how higher education and green finance impact the promotion of sustainable energy within the Regional Comprehensive Economic Partnership (RCEP) region from 2000 to 2020. The analysis reveals that higher education has a positive effect on sustainable energy development, with a 1% increase in the higher education population associated with a 0.19% rise in short-term and a 0.29% rise in long-term sustainable energy progress. Green finance also plays a crucial role, significantly accelerating green energy development in the RCEP region—each 1% increase in green finance results in a 0.43% boost in short-term and a 0.38% boost in long-term sustainable energy advancement. In contrast, increased fossil fuel production hampers sustainable energy development. Enhanced internet access further supports green energy progress, contributing to a 0.43% increase in the short-term and a 0.53% increase in the long-term. Policy recommendations include expanding the green finance market, advancing sustainable education initiatives, reducing reliance on fossil fuels, and improving internet access to further sustainable energy development in the RCEP region.

Analyzing the socially sustainable impacts of private investments in the mining sector in rural areas

This study examines the effect of private investment in the mining sector on social sustainability across nine ASEAN countries from 2005 to 2021 using the CS-ARDL panel data approach. The results indicate a negative relationship between private mining investment and social sustainability, with reductions of 0.15% in the short term and 0.59% in the long term, due to environmental degradation, income inequality, and economic volatility. A 1% increase in rural GDP also leads to declines in social sustainability by 0.03% and 0.17% in the short and long term, respectively, underscoring the need for eco-friendly economic activities. Additionally, inflation reduces social sustainability, while rural internet access significantly improves it. To encourage sustainable investment, policies should focus on green finance, sustainable literacy, risk mitigation, and rural economic growth aligned with sustainable development principles.

Development of Green Finance and Sustainable Investment: A Case Study of the Issuance and Operation of SF Holdings' Green Bond Financing Project

Development of Green Finance and Sustainable Investment: A Case Study of the Issuance and Operation of SF Holdings' Green Bond Financing Project

Can green finance promote inclusive development? Empirical evidence from China

Can green finance promote inclusive development? Empirical evidence from China

Research on the Measurement of Gold Green Total Factor Productivity in the Yangtze River Economic Belt under the Background of Green Finance

With the continuous growth of the economy, the contradiction between finance and the environment has become increasingly prominent, and green finance has attracted much attention due to its sustainable development function. This study integrates green financial efficiency into green total factor productivity based on the two-stage super efficiency unexpected SBM model, and constructs the financial green total factor productivity of the Yangtze River Economic Belt from 2013 to 2021. The convergence model is used to verify the convergence of productivity development. The research results indicate that, in terms of time dimension, the efficiency of green finance in the Yangtze River Economic Belt is relatively stable, the level of financial ecological performance first decreases and then increases, and the financial feedback ecological performance remains at a high level for a long time. The overall trend of financial green total factors is increasing, and financial green technology innovation is an important driving factor for the increase; In terms of convergence testing, no significant alpha convergence was found in the upper, middle, and lower reaches of the Yangtze River Economic Belt, and the regional differences did not significantly decrease. However, there was overall beta convergence, indicating a "catch-up effect" from low productivity provinces to high productivity provinces.

Does Green Finance Improve Industrial Energy Efficiency? Empirical Evidence from China

Does Green Finance Improve Industrial Energy Efficiency? Empirical Evidence from China

Does green finance promote the transformation and upgrading of manufacturing enterprises? Empirical research based on micro survey data in China

This paper derives six research hypotheses related to the transformation and upgrading of green finance and manufacturing enterprises based on theoretical and literature analysis, and uses multi-stage non-strict πPSsampling method for micro data collection. The empirical study finds that green finance significantly promotes the transformation and upgrading of manufacturing enterprises. The transmission mechanism test based on the mediating effect model finds that resource allocation innovation, technological innovation, product innovation, organizational innovation and market innovation all play a partial mediating role in the process of green finance promoting the transformation and upgrading of manufacturing enterprises.

Retraction Note: Spatial effects of green finance development in Chinese provinces under the context of high-quality energy development

Retraction Note: Spatial effects of green finance development in Chinese provinces under the context of high-quality energy development

Impact of Natural Gas Peak Shaving on High-Quality Economic Development

As energy demand continues to grow, the enhancement of natural gas storage and peaking capacity has become an important measure to ensure national energy security and to achieve the goals of carbon peaking and carbon neutrality. Gas storage and peaking have mature development models in the international arena, and China is making every effort to develop this system. This study reveals the impact and promotion of natural gas storage and peaking technology on high-quality economic growth in different regional economic environments through sample data from 30 provinces in China, from 2006 to 2022. The results show that natural gas storage and peaking directly promote high-quality economic development and have a positive spatial spillover effect on high-quality development in neighboring regions, a finding verified by the robustness test and endogeneity test. A heterogeneity analysis further revealed that there are significant differences among eastern, central, and western regions in terms of natural gas storage and peaking capacity and quality of economic development. The eastern region has a stronger gas storage and peaking capacity, while the central and western regions have a weaker capacity. Mechanism analysis shows that R and D technology (RDT) efficiency and green finance have a positive moderating effect on the benchmark effect. This has significant implications for policymakers and business leaders, suggesting that peak gas storage and peaking can drive improvements in broader regional corporate sustainability practices and increase regional levels of high-quality development.

Retraction Note: Exploring role of green financing in blockchain markets for climate change mitigation in China.

Retraction Note: Exploring role of green financing in blockchain markets for climate change mitigation in China.

Retraction Note: Does environmental psychology matter: role of green finance and government spending for sustainable development.

Retraction Note: Does environmental psychology matter: role of green finance and government spending for sustainable development.