IDEAS home Printed from https://ideas.repec.org/a/wly/corsem/v30y2023i5p2166-2181.html
   My bibliography  Save this article

Green finance, environment regulation, and industrial green transformation for corporate social responsibility

Author

Listed:
  • Di Chen
  • Haiqing Hu
  • Chun‐Ping Chang

Abstract

In order to meet the strategic goals of carbon peak and carbon neutralization on schedule, it is crucial to examine the effects and limitations of green finance on the green transformation of industry. This research utilizes the entropy method, the Global Malmquist–Luenberger technique, and panel data of 30 provinces in China from 2005 to 2018 to estimate the extent of industrial green transformation and green finance development in each province. It builds static and dynamic panel models to experimentally examine the effect of green finance on industrial green transformation. After introducing environmental regulation (ER), this paper presents how ER influences the link between green finance and industrial green transformation. The research finds the following. (1) According to geographical differences in the growth of green finance and industrial green transformation, the economically developed east region is more advanced than the central and west regions, and the central region is more advanced than the west region. (2) Green finance has a significantly positive impact on industrial green transformation, and this positive influence has certain continuity and inertia. (3) Environmental regulation has a favorable impact on the link between green finance and industrial green transformation; specifically, a rise in the level of environmental regulation stimulates the process of green finance that boosts industrial green transformation. The policy recommendations herein offer reference for the construction of China's green financial system and the promotion of industrial green transformation for CSR.

Suggested Citation

  • Di Chen & Haiqing Hu & Chun‐Ping Chang, 2023. "Green finance, environment regulation, and industrial green transformation for corporate social responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2166-2181, September.
    • Handle: RePEc:wly:corsem:v:30:y:2023:i:5:p:2166-2181
    DOI: 10.1002/csr.2476
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/csr.2476
    Download Restriction: no
    File URL: https://libkey.io/10.1002/csr.2476?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
    ---><---

    References listed on IDEAS

    as
    1. Yujun Cui & Sean Geobey & Olaf Weber & Haiying Lin, 2018. "The Impact of Green Lending on Credit Risk in China," Sustainability, MDPI, vol. 10(6), pages 1-16, June.
    2. Cai Chen & Yingli Zhang & Yun Bai & Wenrui Li, 2021. "The impact of green credit on economic growth—The mediating effect of environment on labor supply," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-21, September.
    3. repec:clg:wpaper:2008-02 is not listed on IDEAS
    4. Yan Xue & Caidong Jiang & Yunxia Guo & Jianmin Liu & Haitao Wu & Yu Hao, 2022. "Corporate Social Responsibility and High-quality Development: Do Green Innovation, Environmental Investment and Corporate Governance Matter?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(11), pages 3191-3214, September.
    5. René Kemp & Babette Never, 2017. "Green transition, industrial policy, and economic development," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(1), pages 66-84.
    6. Leahy, John V & Whited, Toni M, 1996. "The Effect of Uncertainty on Investment: Some Stylized Facts," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(1), pages 64-83, February.
    7. Romain Berrou & Nicola Ciampoli & Vladimiro Marini, 2019. "Defining Green Finance: Existing Standards and Main Challenges," Palgrave Studies in Impact Finance, in: Marco Migliorelli & Philippe Dessertine (ed.), The Rise of Green Finance in Europe, chapter 0, pages 31-51, Palgrave Macmillan.
    8. Wu, Haitao & Hao, Yu & Ren, Siyu, 2020. "How do environmental regulation and environmental decentralization affect green total factor energy efficiency: Evidence from China," Energy Economics, Elsevier, vol. 91(C).
    9. Ge, Tao & Cai, Xuesen & Song, Xiaowei, 2022. "How does renewable energy technology innovation affect the upgrading of industrial structure? The moderating effect of green finance," Renewable Energy, Elsevier, vol. 197(C), pages 1106-1114.
    10. Levine, Ross, 2005. "Finance and Growth: Theory and Evidence," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 12, pages 865-934, Elsevier.
    11. Arik Levinson & M. Scott Taylor, 2008. "Unmasking The Pollution Haven Effect," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(1), pages 223-254, February.
    12. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    13. Peng, Jiaying & Xie, Rui & Ma, Chunbo & Fu, Yang, 2021. "Market-based environmental regulation and total factor productivity: Evidence from Chinese enterprises," Economic Modelling, Elsevier, vol. 95(C), pages 394-407.
    14. Mingbo Zheng & Gen-Fu Feng & Xinxin Zhao & Chun-Ping Chang, 2023. "The transaction behavior of cryptocurrency and electricity consumption," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-18, December.
    15. Quan Guo & Min Zhou & Nana Liu & Yaoyu Wang, 2019. "Spatial Effects of Environmental Regulation and Green Credits on Green Technology Innovation under Low-Carbon Economy Background Conditions," IJERPH, MDPI, vol. 16(17), pages 1-16, August.
    16. Yang, Hao-Chang & Feng, Gen-Fu & Zhao, Xin Xin & Chang, Chun-Ping, 2022. "The impacts of energy insecurity on green innovation: A multi-country study," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 139-154.
    17. Beck, Thorsten & Levine, Ross & Loayza, Norman, 2000. "Finance and the sources of growth," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 261-300.
    18. Rong Guan & Haitao Zheng & Jie Hu & Qi Fang & Ruoen Ren, 2017. "The Higher Carbon Intensity of Loans, the Higher Non-Performing Loan Ratio: The Case of China," Sustainability, MDPI, vol. 9(4), pages 1-17, April.
    19. Rongyan Liu & Deqing Wang & Li Zhang & Lihong Zhang, 2019. "Can green financial development promote regional ecological efficiency? A case study of China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 95(1), pages 325-341, January.
    20. Dong-hyun Oh, 2010. "A global Malmquist-Luenberger productivity index," Journal of Productivity Analysis, Springer, vol. 34(3), pages 183-197, December.
    21. Joakim Westerlund & David L. Edgerton, 2007. "New Improved Tests for Cointegration with Structural Breaks," Journal of Time Series Analysis, Wiley Blackwell, vol. 28(2), pages 188-224, March.
    22. Robert G. King & Ross Levine, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 717-737.
    23. Lee, Chi-Chuan & Lee, Chien-Chiang, 2022. "How does green finance affect green total factor productivity? Evidence from China," Energy Economics, Elsevier, vol. 107(C).
    24. Xu, Yong & Li, Shanshan & Zhou, Xiaoxiao & Shahzad, Umer & Zhao, Xin, 2022. "How environmental regulations affect the development of green finance: Recent evidence from polluting firms in China," Renewable Energy, Elsevier, vol. 189(C), pages 917-926.
    25. Fushuai Wang & Wenxia Cai & Ehsan Elahi, 2021. "Do Green Finance and Environmental Regulation Play a Crucial Role in the Reduction of CO 2 Emissions? An Empirical Analysis of 126 Chinese Cities," Sustainability, MDPI, vol. 13(23), pages 1-20, November.
    26. Yang, Yuxue & Su, Xiang & Yao, Shuangliang, 2021. "Nexus between green finance, fintech, and high-quality economic development: Empirical evidence from China," Resources Policy, Elsevier, vol. 74(C).
    27. Yu, Chin-Hsien & Wu, Xiuqin & Zhang, Dayong & Chen, Shi & Zhao, Jinsong, 2021. "Demand for green finance: Resolving financing constraints on green innovation in China," Energy Policy, Elsevier, vol. 153(C).
    28. Li, Tingting & Wang, Yong & Zhao, Dingtao, 2016. "Environmental Kuznets Curve in China: New evidence from dynamic panel analysis," Energy Policy, Elsevier, vol. 91(C), pages 138-147.
    29. Wang, Rong & Zhao, Xing & Zhang, Ling, 2022. "Research on the impact of green finance and abundance of natural resources on China's regional eco-efficiency," Resources Policy, Elsevier, vol. 76(C).
    30. Xi Chen & Zhigang Chen, 2021. "Can Green Finance Development Reduce Carbon Emissions? Empirical Evidence from 30 Chinese Provinces," Sustainability, MDPI, vol. 13(21), pages 1-18, November.
    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. Ge, Tao & Hao, Zixuan & Chen, Yuan & Chen, Zhanbo, 2024. "Energy intensity constraints and corporate investment strategies: Evidence from Chinese listed enterprises," Finance Research Letters, Elsevier, vol. 64(C).
    2. Chen, Di & Hu, Haiqing & Wang, Ning & Chang, Chun-Ping, 2024. "The impact of green finance on transformation to green energy: Evidence from industrial enterprises in China," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    3. Yang, Xiaodong & Liu, Xia & Ran, Qiying & Razzaq, Asif, 2023. "How does natural resource dependence influence industrial green transformation in China? Appraising underlying mechanisms for sustainable development at regional level," Resources Policy, Elsevier, vol. 86(PA).

    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. Bakry, Walid & Mallik, Girijasankar & Nghiem, Xuan-Hoa & Sinha, Avik & Vo, Xuan Vinh, 2023. "Is green finance really “green”? Examining the long-run relationship between green finance, renewable energy and environmental performance in developing countries," Renewable Energy, Elsevier, vol. 208(C), pages 341-355.
    2. Tang, Xinmeng & Zhou, Xiaoguang, 2023. "Impact of green finance on renewable energy development: A spatiotemporal consistency perspective," Renewable Energy, Elsevier, vol. 204(C), pages 320-337.
    3. Tao Shi, 2022. "The Spatiotemporal Evolutionary Trend and Driving Factors of the Coupling Coordinated Development between Regional Green Finance and Ecological Environment," IJERPH, MDPI, vol. 19(10), pages 1-25, May.
    4. Lee, Chi-Chuan & Lee, Chien-Chiang, 2022. "How does green finance affect green total factor productivity? Evidence from China," Energy Economics, Elsevier, vol. 107(C).
    5. Lu, Yuchen & Gao, Yuqiang & Zhang, Yu & Wang, Junrong, 2022. "Can the green finance policy force the green transformation of high-polluting enterprises? A quasi-natural experiment based on “Green Credit Guidelines”," Energy Economics, Elsevier, vol. 114(C).
    6. Hammudeh, Shawkat & Sohag, Kazi & Husain, Shaiara & Husain, Humaira & Said, Jamaliah, 2020. "Nonlinear relationship between economic growth and nuances of globalisation with income stratification: Roles of financial development and governance," Economic Systems, Elsevier, vol. 44(3).
    7. Bittencourt, Manoel, 2012. "Financial development and economic growth in Latin America: Is Schumpeter right?," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 341-355.
    8. Pradhan, Rudra P. & Arvin, Mak B. & Hall, John H., 2016. "Economic growth, development of telecommunications infrastructure, and financial development in Asia, 1991–2012," The Quarterly Review of Economics and Finance, Elsevier, vol. 59(C), pages 25-38.
    9. Li, Songran & Shao, Qinglong, 2022. "Greening the finance for climate mitigation: An ARDL–ECM approach," Renewable Energy, Elsevier, vol. 199(C), pages 1469-1481.
    10. Su-Yin Cheng & Han Hou, 2022. "Financial development, life insurance and growth: Evidence from 17 European countries," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(4), pages 835-860, October.
    11. Lee, Chien-Chiang & Ho, Shan-Ju, 2022. "Impacts of export diversification on energy intensity, renewable energy, and waste energy in 121 countries: Do environmental regulations matter?," Renewable Energy, Elsevier, vol. 199(C), pages 1510-1522.
    12. Lee, Chi-Chuan & Song, Hepeng & Lee, Chien-Chiang, 2023. "Assessing the effect of green finance on energy inequality in China via household-level analysis," Energy Economics, Elsevier, vol. 128(C).
    13. Chuanxin Xia & Yu Zhao & Qingxia Zhao & Shuo Wang & Ning Zhang, 2022. "Exact Eco-Efficiency Measurement in the Yellow River Basin: A New Non-Parametric Approach," Sustainability, MDPI, vol. 14(20), pages 1-18, October.
    14. Yayun Ren & Jian Yu & Shuhua Xu & Jiaomei Tang & Chang Zhang, 2023. "Green Finance and Industrial Low-Carbon Transition: Evidence from a Quasi-Natural Experiment in China," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    15. Swamy, Vighneswara & Dharani, Munusamy, 2019. "The dynamics of finance-growth nexus in advanced economies," International Review of Economics & Finance, Elsevier, vol. 64(C), pages 122-146.
    16. Lei Nie & Purong Chen & Xiuli Liu & Qinqin Shi & Jing Zhang, 2022. "Coupling and Coordinative Development of Green Finance and Industrial-Structure Optimization in China: Spatial-Temporal Difference and Driving Factors," IJERPH, MDPI, vol. 19(17), pages 1-22, September.
    17. Manoel Bittencourt, 2010. "Financial Development and Economic Growth in Latin America: Schumpeter is Right!," Working Papers 201014, University of Pretoria, Department of Economics.
    18. Çetin, Murat & Sarıgül, Sevgi Sümerli & Işık, Cem & Avcı, Pınar & Ahmad, Munir & Alvarado, Rafael, 2023. "The impact of natural resources, economic growth, savings, and current account balance on financial sector development: Theory and empirical evidence," Resources Policy, Elsevier, vol. 81(C).
    19. Decai Tang & Zhangming Shan & Junxia He & Ziqian Zhao, 2022. "How Do Environmental Regulations and Outward Foreign Direct Investment Impact the Green Total Factor Productivity in China? A Mediating Effect Test Based on Provincial Panel Data," IJERPH, MDPI, vol. 19(23), pages 1-32, November.
    20. Pradeepta Sethi & Brajesh Kumar, 2014. "Financial structure gap and economic development in India," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 15(4), pages 776-794, September.

    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:wly:corsem:v:30:y:2023:i:5:p:2166-2181. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1535-3966 .

    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.