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Green finance, climate change, and green innovation: Evidence from China

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  • Chen, Fuyong
  • Zeng, Xiao
  • Guo, Xiang

Abstract

This study examines the relationship between the development of green finance and corporate green innovation. The research results indicate that the development of green finance significantly improves the level of green innovation in enterprises, which can simultaneously increase the quantity and quality of innovation. This conclusion still holds after adopting lagged regression and excluding the digital finance effect. The examination of the impact mechanism reveals that financing cost play a mediating role in this effect. In addition, we find that the development of green finance has a more significant promoting effect on green innovation when climate change is high.

Suggested Citation

  • Chen, Fuyong & Zeng, Xiao & Guo, Xiang, 2024. "Green finance, climate change, and green innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324003131
    DOI: 10.1016/j.frl.2024.105283
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    More about this item

    Keywords

    Green finance; Climate change; Green innovation; Financing cost;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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