Can the Green Finance Reform and Innovation Improve Green Investment of Heavily Polluting Enterprises?

Di Lv and Chaobo Zhou ()
Additional contact information
Di Lv: School of International Economics and Trade, Ningbo University of Finance and Economics, Ningbo 315175, China
Chaobo Zhou: School of International Economics and Trade, Ningbo University of Finance and Economics, Ningbo 315175, China

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

Abstract: Determining whether the Green Finance Reform and Innovation Pilot Zone (GFRI) promotes the green investment (GI) of enterprises is practically important for China to achieve the “double carbon” goal early. This study examines the effect of GFRI on GI by the relevant data of listed heavily polluting enterprises in China from 2011 to 2020 and a difference-in-difference model. The results show that GFRI improves the GI of enterprises, and GFRI can enhance GI by promoting reputational costs and loan scale. The improvement effect is also more significant for state-owned enterprises, enterprises with high financing constraints, enterprises in regions with high environmental regulation intensity, and enterprises with executives’ financial backgrounds. The improvement in GI can further enhance the value of enterprises after the implementation of GFRI. The study provides a direct answer to the key question of whether the GFRI can actually support high-quality economic development.

Keywords: green finance; green investment; difference in difference; reputational cost; loan scale (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 (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/15/11677/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/15/11677/ (text/html)

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:gam:jsusta:v:15:y:2023:i:15:p:11677-:d:1205167

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().