The impact of green finance on transformation to green energy: Evidence from industrial enterprises in China

Di Chen, Haiqing Hu, Ning Wang and Chun-Ping Chang

Technological Forecasting and Social Change, 2024, vol. 204, issue C

Abstract: Green finance is a novel financial model that strikes a balance between economic gains and environmental preservation, and it is crucial in encouraging industrial companies to move towards environmentally friendly development. This paper examines the impact of green finance on the green transformation of industrial enterprises using the data of China's A-share listed industrial enterprises from 2009 to 2019. The study adopts a propensity score matching method and a difference-in-difference method (PSM-DID), based on the Green Credit Guidance (2012 Guidance) issued by China as a quasi natural experiment. The results suggest that: (1) Green finance contributes significantly to improving the green production efficiency of industrial enterprises. (2) Although the current impact of green finance on the green innovation of industrial enterprises is not statistically significant, it exhibits a positive influence in the subsequent period. (3) The results of the heterogeneity analysis show that the impact of green finance on the green transformation of industrial enterprises is asymmetric, with more emphasis on state-owned enterprises, enterprises with severe financial constraints, and enterprises with low industrial concentration. As a result, our study makes recommendations on how to best link CSR, green finance, and industrial green transformation.

Keywords: Green finance; Green transformation; CSR; Green innovation; Industrial enterprise (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:204:y:2024:i:c:s0040162524002075

DOI: 10.1016/j.techfore.2024.123411

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