Nexus between green finance development and green technological innovation: A potential way to achieve the renewable energy transition

Rui Bai and Boqiang Lin ()

Renewable Energy, 2023, vol. 218, issue C

Abstract: Green innovation is a feasible and potential option that governments can adopt to reduce reliance on fossil fuels and speed the transition to renewable energy sources. This study analyzes the relationship between green finance development and green innovation using listed Chinese companies to investigate the role of green finance. In the preliminary analysis, it employs Poisson and negative binomial distributions based on the sample characteristics. The additional research considers enterprises’ internal and external characteristics and adds a zero-inflated factor with enterprise-scale and bank competition. Our main findings suggest that green finance positively improves green technological innovation, and zero-inflated factors can significantly lower the possibility of enterprises refusing to engage in green innovation. By using a representative green finance policy in 2012 as a quasi-natural experiment, this paper also demonstrates the promoting effect of green finance development. The above results are still valid by the robustness test. Furthermore, this paper applies the panel threshold model and finds that the enterprise scale and bank competition not only affect the choice of the enterprise but also stimulate the promotion intensity in different development stages. This paper contributes to targeted policy implications for the renewable energy transition.

Keywords: Green finance; Green innovation; Enterprise scale; Banking competition (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0960148123012107
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:218:y:2023:i:c:s0960148123012107

DOI: 10.1016/j.renene.2023.119295

Access Statistics for this article

Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides

More articles in Renewable Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().