Does Green Finance Promote the Green Transformation of China’s Manufacturing Industry?

Ming Chen, Lina Song, Xiaobo Zhu (), Yanshuo Zhu and Chuanhao Liu
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Ming Chen: School of Economics and Management, Qingdao University of Science and Technology, 99 Songling Road, Qingdao 266061, China
Lina Song: School of Economics and Management, Qingdao University of Science and Technology, 99 Songling Road, Qingdao 266061, China
Xiaobo Zhu: School of Economics and Management, Qingdao University of Science and Technology, 99 Songling Road, Qingdao 266061, China
Yanshuo Zhu: School of Economics and Management, Qingdao University of Science and Technology, 99 Songling Road, Qingdao 266061, China
Chuanhao Liu: School of Economics and Management, Qingdao University of Science and Technology, 99 Songling Road, Qingdao 266061, China

Sustainability, 2023, vol. 15, issue 8, 1-22

Abstract: The green transformation of the manufacturing industry is related to the low-carbon and green development of the economy. The study explored the impact mechanism of the implementation of green finance policy on the green transformation of China’s manufacturing industry from 2013 to 2021 from three aspects of capital formation and incentive, credit catalysis, integration and decentralization, and conducted a quasi-natural experiment using difference-in-difference (DID) model. Research finds that: (1) The implementation of green finance significantly promotes the green transformation of China’s manufacturing industry and has good sustainability. The mechanisms of fund formation and orientation, credit catalysis, integration and decentralization are the primary mechanism of green finance to promote the green transformation of the manufacturing industry, and the implementation effect of green finance has apparent heterogeneity; (2) The promoting effect of green finance on the green transformation of the manufacturing industry is solely vast in state-owned industries however now not enormous in non-state-owned industries; (3) The influence of green finance on the green transformation efficiency of manufacturing industry with a better information environment is more significant than manufacturing industry with a worse information environment; (4) Faced with the pressure of investing in green industries, the coping strategies adopted by enterprises in different industries are quite different. The promoting effect of green finance on the green transformation of the manufacturing industry is significant in low-competition industries but insignificant in high-competition industries. This study has enriched the research on the effect of green finance policies, explored solutions based on quasi-nature, and provided policy references for the green transformation of the manufacturing industry.

Keywords: green finance; green transformation of manufacturing industry; green total factor productivity; DID model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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