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Impact of Green Finance on Renewable Energy Technology Innovation: Empirical Evidence from China

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  • Xiaoyan Shi

    (College of Science, Gansu Agricultural University, Lanzhou 730700, China)

  • Daimin Shi

    (School of Statistics, Southwestern University of Finance and Economics, Chengdu 611130, China)

Abstract

This work empirically analyzes the drivers of RETI from a financial perspective, using panel data from China’s provincial-level regions from 2013 to 2022. The results indicate that green financial development can significantly promote renewable energy innovation, which still holds after a series of robustness tests. Analysis of the mechanisms shows that green finance drives renewable energy technological innovation (RETI) by easing financing limitations and promoting the green transformation of industrial sectors. Furthermore, threshold effect analysis indicates a significant threshold effect regarding the influence of green finance on technological innovation within the renewable energy sector. Specifically, when the level of technological innovation in renewable energy surpasses a certain threshold value, the facilitating effect of green finance on this innovation becomes markedly stronger. Further analysis also reveals that technological innovation in renewable energy can significantly drive the low-carbon transformation of the energy consumption structure.

Suggested Citation

  • Xiaoyan Shi & Daimin Shi, 2025. "Impact of Green Finance on Renewable Energy Technology Innovation: Empirical Evidence from China," Sustainability, MDPI, vol. 17(5), pages 1-19, March.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:5:p:2201-:d:1604570
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