Green finance and investment behavior of renewable energy enterprises: A case study of China

Qunwei Wang and Zining Fan

International Review of Financial Analysis, 2023, vol. 87, issue C

Abstract: This study examines how the green finance facilitates the investment behavior of renewable energy enterprises. Considering the economic development level and financing constraints faced by the enterprises, a dynamic panel threshold model is applied using China as our experimental setting. The research finds that the development of green finance can improve the investment level of renewable energy enterprises. High-quality economic development can play a similar role as green finance in promoting investment in renewable energy enterprises. However, the promoting effect of green finance will be weakened or even offset by the excessive financing constraints of enterprises. The results advance our understanding of the mechanism of green finance on the investment behavior of renewable energy enterprises, and suggesting that maintaining high-quality economic development and alleviating the financing difficulties of enterprises will be more conducive to play the role of green finance in supporting the investment of renewable energy enterprises.

Keywords: Green finance; Renewable energy enterprises; Investment behavior; Dynamic panel threshold model (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (48)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:87:y:2023:i:c:s1057521923000807

DOI: 10.1016/j.irfa.2023.102564

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