The Impact of Green Finance and Technological Innovation on Corporate Environmental Performance: Driving Sustainable Energy Transitions

Sonia Chien-i Chen (), Xinlei Xu () and Chung-Ming Own
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Sonia Chien-i Chen: School of Economics, Qingdao University, Qingdao 266071, China
Xinlei Xu: School of Economics, Qingdao University, Qingdao 266071, China
Chung-Ming Own: College of Intelligence and Computing, Tianjin University, Tianjin 300072, China

Energies, 2024, vol. 17, issue 23, 1-18

Abstract: As global sustainability imperatives increase, understanding how green finance policies and technological innovation influence corporate environmental performance has become a relevant issue. This study examines the impact of green finance on corporate environmental practices, particularly focusing on how innovation enhances sustainable energy transitions. A difference-in-differences (DID) approach was employed. This research compares corporate environmental performance before and after the implementation of green finance policies across treated and control groups. This method allows for isolating the effect of green finance by controlling for temporal and individual factors, providing robust insights into policy efficacy. Our findings indicate a statistically significant improvement in environmental performance, particularly among larger, state-owned enterprises in China’s eastern regions. The findings also underscore the moderating role of innovation in optimizing green finance outcomes. Finally, important implications for policymakers aiming to drive corporate sustainability are offered.

Keywords: green finance; environmental performance; difference-in-differences model; sustainable energy transitions (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
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