Green Finance Reform: How to Drive a Leap in the Quality of Green Innovation in Enterprises?

Shuying Chen, Da Gao and Linfang Tan ()
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Shuying Chen: School of Economics and Management, Yiwu Industrial & Commercial College, Yiwu 322000, China
Da Gao: School of Law and Business, Wuhan Institute of Technology, Wuhan 430205, China
Linfang Tan: School of Economics and Management, Wuhan University, Wuhan 430072, China

Sustainability, 2025, vol. 17, issue 15, 1-27

Abstract: Improving green innovation quality is a critical component for speeding green transformation and generating high-quality growth. This study examines the link between the pilot zone for green finance reform and innovations (PZGFRI) policy and the quality of green innovation in Chinese A-share listed firms from 2010 to 2020. This study demonstrates that the PZGFRI may greatly enhance the quality of enterprises’ green innovation. Additionally, by promoting environmental investment and reducing financial barriers, we use the mediating effect model to confirm that the PZGFRI improves the enterprises’ quality of green innovation. Meanwhile, the heterogeneity analysis demonstrates that the PZGFRI is more successful in raising the green innovation quality in state-owned, large-sized, and heavily polluting businesses. Our study’s findings offer a strong theoretical basis for improving the PZGFRI and encouraging businesses to undergo high-quality transformation.

Keywords: green finance reform policy; green innovation quality; mediating effect model; difference-in-difference model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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