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Impact of green finance on hydropower investments: A perspective of environmental law

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  • Hong, Weiming
  • Luo, Jingwen
  • Du, Yu

Abstract

With growing global environmental concerns and the commitment to sustainable development and stricter environmental laws, green finance has emerged as an important means of supporting renewable energy projects. Using data from Chinese provinces from 2015 to 2021 as the research sample, this study, through the lens of environmental law, explores the relationship between green finance, environmental regulation intensity, and hydropower investment. Results show that green finance is positively correlated with hydropower investment, and environmental regulation intensity positively moderates this relationship. Heterogeneity analysis reveals that the impact of green finance on hydropower investment is more pronounced in regions with higher education levels.

Suggested Citation

  • Hong, Weiming & Luo, Jingwen & Du, Yu, 2024. "Impact of green finance on hydropower investments: A perspective of environmental law," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012078
    DOI: 10.1016/j.frl.2024.106178
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    More about this item

    Keywords

    Green finance; Hydropower investment; Environmental regulation intensity; Sustainable development; Environmental law;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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