IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v11y2024i1d10.1057_s41599-024-03517-0.html
   My bibliography  Save this article

Role of green finance in regional heterogeneous green innovation: Evidence from China

Author

Listed:
  • Lei Li

    (Tianjin University)

  • Xiaoyu Ma

    (Tianjin University)

  • Shaojun Ma

    (Tianjin University)

  • Feng Gao

    (Tianjin University)

Abstract

Green finance plays a critical role in promoting regional green innovation. However, the precise influence of green finance on diverse facets of green innovation remains underexplored. This study empirically analyses the diverse effects of green finance on heterogeneous green innovation by applying the negative binomial model, the threshold model, andthe spatial error model using China’s regional data from 2010 to 2019. The results indicate that green finance has a positive impact on regional green innovation performance, primarily through significant contributions to fossil energy carbon reduction, energy conservation and recovery, and clean energy technology innovation. The effect of green finance is also influenced by the level of local environmental supervision, exhibiting a significant threshold effect. In addition, the development of green innovation in the region can have a siphoning effect on the resources of surrounding areas, hindering their innovation development. These findings highlight the necessity for strategic government policy-making, which should leverage the diverse impacts of green finance on various forms of green innovation. Customizing green financial instruments to suit regional environmental regulatory conditions and the green innovation levels of neighboring regions could significantly aid in promoting regional green transformation and growth.

Suggested Citation

  • Lei Li & Xiaoyu Ma & Shaojun Ma & Feng Gao, 2024. "Role of green finance in regional heterogeneous green innovation: Evidence from China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03517-0
    DOI: 10.1057/s41599-024-03517-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-024-03517-0
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-024-03517-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sanjay Kumar Singh & Manlio Del Giudice & Charbel Jose Chiappetta Jabbour & Hengky Latan & Amrik Singh Sohal, 2022. "Stakeholder pressure, green innovation, and performance in small and medium‐sized enterprises: The role of green dynamic capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 500-514, January.
    2. Liu, Yunqiang & Zhu, Jialing & Li, Eldon Y. & Meng, Zhiyi & Song, Yan, 2020. "Environmental regulation, green technological innovation, and eco-efficiency: The case of Yangtze river economic belt in China," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    3. Markus Grillitsch & Teis Hansen, 2019. "Green industry development in different types of regions," European Planning Studies, Taylor & Francis Journals, vol. 27(11), pages 2163-2183, November.
    4. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    5. Popp, David, 2019. "Environmental Policy and Innovation: A Decade of Research," International Review of Environmental and Resource Economics, now publishers, vol. 13(3-4), pages 265-337, September.
    6. Leoncini, Riccardo & Montresor, Sandro & Rentocchini, Francesco, 2016. "CO2-reducing innovations and outsourcing: Evidence from photovoltaics and green construction in North-East Italy," Research Policy, Elsevier, vol. 45(8), pages 1649-1659.
    7. Barbieri, Nicolò & Marzucchi, Alberto & Rizzo, Ugo, 2020. "Knowledge sources and impacts on subsequent inventions: Do green technologies differ from non-green ones?," Research Policy, Elsevier, vol. 49(2).
    8. Lu Qiu & Die Hu & Yu Wang, 2020. "How do firms achieve sustainability through green innovation under external pressures of environmental regulation and market turbulence?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2695-2714, September.
    9. Chen, Zhao & Kahn, Matthew E. & Liu, Yu & Wang, Zhi, 2018. "The consequences of spatially differentiated water pollution regulation in China," Journal of Environmental Economics and Management, Elsevier, vol. 88(C), pages 468-485.
    10. Kesidou, Effie & Wu, Lichao, 2020. "Stringency of environmental regulation and eco-innovation: Evidence from the eleventh Five-Year Plan and green patents," Economics Letters, Elsevier, vol. 190(C).
    11. Qiaoxin Xie & Yu Zhang & Lei Chen, 2022. "Does green credit policy promote innovation: A case of China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2704-2714, October.
    12. Wei‐Jr Juo & Chao‐Hung Wang, 2022. "Does green innovation mediate the relationship between green relational view and competitive advantage?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2456-2468, July.
    13. Manjot Singh Bhatia & Suresh Kumar Jakhar, 2021. "The effect of environmental regulations, top management commitment, and organizational learning on green product innovation: Evidence from automobile industry," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3907-3918, December.
    14. Doblinger, Claudia & Surana, Kavita & Li, Deyu & Hultman, Nathan & Anadón, Laura Díaz, 2022. "How do global manufacturing shifts affect long-term clean energy innovation? A study of wind energy suppliers," Research Policy, Elsevier, vol. 51(7).
    15. David Popp, 2019. "Environmental Policy and Innovation: A Decade of Research," NBER Working Papers 25631, National Bureau of Economic Research, Inc.
    16. Wanli Zhang & Bin Zhu & Yongling Li & Dan Yan, 2024. "Revisiting the Porter hypothesis: a multi-country meta-analysis of the relationship between environmental regulation and green innovation," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    17. Chaoyang Tu & Yuxi Liang & Yong Fu, 2024. "How does the environmental attention of local governments affect regional green development? Empirical evidence from local governments in China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    18. Tobias Stucki, 2019. "What hampers green product innovation: the effect of experience," Industry and Innovation, Taylor & Francis Journals, vol. 26(10), pages 1242-1270, November.
    19. Tian, George Zhe & Yae, James, 2024. "Unintended consequences of punishment: Adverse effects of environmental penalties on green patents," Research in International Business and Finance, Elsevier, vol. 70(PA).
    20. Lai, Zhixuan & Lou, Gaoxiang & Ma, Haicheng & Chung, Sai-Ho & Wen, Xin & Fan, Tijun, 2022. "Optimal green supply chain financing strategy: Internal collaborative financing and external investments," International Journal of Production Economics, Elsevier, vol. 253(C).
    21. Limei Ma & Qianying Wang & Dan Shi & Qinglong Shao, 2023. "Spatiotemporal patterns and determinants of renewable energy innovation: Evidence from a province-level analysis in China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    22. David Popp, 2019. "Environmental policy and innovation: a decade of research," CESifo Working Paper Series 7544, CESifo.
    23. Teresa García‐Marco & Ferdaous Zouaghi & Mercedes Sánchez, 2020. "Do firms with different levels of environmental regulatory pressure behave differently regarding complementarity among innovation practices?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(4), pages 1684-1694, May.
    24. Cheng, Yuanyuan & Du, Kerui & Yao, Xin, 2023. "Stringent environmental regulation and inconsistent green innovation behavior: Evidence from air pollution prevention and control action plan in China," Energy Economics, Elsevier, vol. 120(C).
    25. Yi, Hong & Hao, Ling & Liu, Aoran & Zhang, Ziyu, 2023. "Green finance development and resource efficiency: A financial structure perspective," Resources Policy, Elsevier, vol. 85(PA).
    26. Nylund, Petra A. & Brem, Alexander & Agarwal, Nivedita, 2022. "Enabling technologies mitigating climate change: The role of dominant designs in environmental innovation ecosystems," Technovation, Elsevier, vol. 117(C).
    27. Wugan Cai & Peiyun Ye, 2022. "Local-neighborhood effects of different environmental regulations on green innovation: evidence from prefecture level cities of China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 4810-4834, April.
    28. Weiping Jia & Xianwen Jia & Ling Wu & Yanbing Guo & Teng Yang & Ermei Wang & Pan Xiao, 2022. "Research on regional differences of the impact of clean energy development on carbon dioxide emission and economic growth," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-9, December.
    29. Chengming Li & Meiyu Wen & Shaoxiang Jiang & Huaxing Wang, 2024. "Assessing the effect of urban digital infrastructure on green innovation: mechanism identification and spatial-temporal characteristics," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xuelian Li & Tinghui Lu & Jyh-Horng Lin & Ching-Hui Chang, 2024. "Insurer green financing for a supply chain under cap-and-trade regulation: a capped call contingent claim analysis," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yan, Zheming & Zhou, Zicheng & Du, Kerui, 2023. "How does environmental regulatory stringency affect energy consumption? Evidence from Chinese firms," Energy Economics, Elsevier, vol. 118(C).
    2. Yan, Zheming & Yu, Ying & Du, Kerui & Zhang, Ning, 2024. "How does environmental regulation promote green technology innovation? Evidence from China's total emission control policy," Ecological Economics, Elsevier, vol. 219(C).
    3. Hötte, Kerstin & Pichler, Anton & Lafond, François, 2021. "The rise of science in low-carbon energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 139(C).
    4. Gianluca Biggi & Martina Iori & Julia Mazzei & Andrea Mina, 2024. "Green Intelligence: The AI content of green technologies," LEM Papers Series 2024/23, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. Ahlvik, Lassi & van den Bijgaart, Inge, 2024. "Screening green innovation through carbon pricing," Journal of Environmental Economics and Management, Elsevier, vol. 124(C).
    6. Barbieri, Nicolò & Marzucchi, Alberto & Rizzo, Ugo, 2023. "Green technologies, interdependencies, and policy," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    7. Mandaroux, Rahel & Schindelhauer, Kai & Basse Mama, Houdou, 2023. "How to reinforce the effectiveness of the EU emissions trading system in stimulating low-carbon technological change? Taking stock and future directions," Energy Policy, Elsevier, vol. 181(C).
    8. Gao, Yanyan & Zheng, Jianghuai, 2024. "The opposite innovation impacts of air and water pollution regulations: Evidence from the total emissions control policy in China," Journal of Asian Economics, Elsevier, vol. 92(C).
    9. Romagnoli, Matteo, 2024. "Clean sweep: Electricity liberalization and the direction of technological change in the electricity sector," Research Policy, Elsevier, vol. 53(8).
    10. Nicolo Barbieri & Alberto Marzucchi & Ugo Rizzo, 2021. "Green technologies, complementarities, and policy," SPRU Working Paper Series 2021-08, SPRU - Science Policy Research Unit, University of Sussex Business School.
    11. Silvia Dalla Fontana & Ramana Nanda, 2023. "Innovating to Net Zero: Can Venture Capital and Start-Ups Play a Meaningful Role?," Entrepreneurship and Innovation Policy and the Economy, University of Chicago Press, vol. 2(1), pages 79-105.
    12. Michael Peneder & Spyros Arvanitis & Christian Rammer & Tobias Stucki & Martin Wörter, 2022. "Policy instruments and self-reported impacts of the adoption of energy saving technologies in the DACH region," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(2), pages 369-404, May.
    13. Grafström, Jonas & Poudineh, Rahmat, 2023. "No evidence of counteracting policy effects on European solar power invention and diffusion," Energy Policy, Elsevier, vol. 172(C).
    14. Johan Lilliestam & Anthony Patt & Germán Bersalli, 2022. "On the quality of emission reductions: observed effects of carbon pricing on investments, innovation, and operational shifts. A response to van den Bergh and Savin (2021)," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 733-758, November.
    15. Krieger, Bastian & Zipperer, Vera, 2022. "Does green public procurement trigger environmental innovations?," Research Policy, Elsevier, vol. 51(6).
    16. David Popp & Jacquelyn Pless & Ivan Haščič & Nick Johnstone, 2020. "Innovation and Entrepreneurship in the Energy Sector," NBER Chapters, in: The Role of Innovation and Entrepreneurship in Economic Growth, pages 175-248, National Bureau of Economic Research, Inc.
    17. Mohamed Bahlali, 2023. "Energy storage and the direction of technical change," Economics Bulletin, AccessEcon, vol. 43(1), pages 318-327.
    18. Rik L. Rozendaal & Herman R. J. Vollebergh, 2021. "Policy-Induced Innovation in Clean Technologies: Evidence from the Car Market," CESifo Working Paper Series 9422, CESifo.
    19. Dahlström, Petter & Lööf, Hans & Sjöholm, Fredrik & Stephan, Andreas, 2023. "The EU’s competitive advantage in the "clean-energy arms race"," Working Paper Series in Economics and Institutions of Innovation 495, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    20. Stern, Nicholas & Sivropoulos-Valero, Anna Valero, 2021. "Innovation, growth and the transition to net-zero emissions," LSE Research Online Documents on Economics 114385, London School of Economics and Political Science, LSE Library.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03517-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.