Role of environmental decentralization, green human capital, and digital finance in firm green technological innovation for a sustainable society

Jawad Abbas () and Hina Najam ()
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Jawad Abbas: University of Central Punjab
Hina Najam: Iqra University Islamabad

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 8, No 72, 19763-19777

Abstract: Abstract Green technologies play a vital role in the environment of digital systems; hence, there is a need to promote digital technologies and eco-friendly practices at organizational and national levels that have grown substantially in response to climate change challenges. This study aims to unlock the impact of digital finance, human capital, and environmental decentralization on green technological innovation. The study uses panel data from 2010 to 2021, following the empirical approach. It analyzes whether environmental decentralization and green human capital strengthen organizational capabilities to innovate green technologies, leading to a sustainable society by integrating the digital financial system from the perspective of Chinese manufacturing firms. The benchmark and baseline regression model showed that digital finance, human capital and environmental decentralization significantly impacted green innovation. Digital finance can support the funding and scaling green initiatives, fostering a more environmentally conscious and economically resilient future. As technology evolves, the link between digital finance and green innovation holds immense potential for shaping a sustainable and inclusive global economy. A knowledgeable and skilled workforce is better positioned to navigate the complexities of sustainable development, contributing to the emergence of eco-friendly technologies and environmentally conscious business practices. Environmental decentralization catalyses diverse and context-specific green innovations, contributing to a more resilient and adaptable global approach to environmental sustainability. Furthermore, to promote technological innovation investment, the government should adopt differentiated policies to encourage sustainable development.

Keywords: Digitalization; Digital finance; Green technological innovation; Climate change; Green human capital; Green innovation (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10668-024-04783-3

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