Search Results (54)

This study constructs an urban energy consumption structure transformation (UECST) index and utilizes a double machine learning model to investigate the impact and underlying mechanisms of green finance policies on this transformation. Based on panel data from 281 prefecture-level cities in China from 2010 to 2022, we find that green finance policies significantly promote the UECST. This finding holds after a series of robustness checks and endogeneity tests. Furthermore, our analysis reveals that these policies facilitate the transition not only through direct financial support but also indirectly by driving green technological innovation, enhancing green economic efficiency, and promoting industrial upgrading. The positive impact is more substantial in central cities, transportation hubs, non-resource-based cities, non-old industrial bases, and key environmental protection cities. By providing empirical evidence and policy insights, this study contributes to optimizing green finance policy design and addressing specific bottlenecks in energy transition, thereby supporting the achievement of the “Beautiful China” development goal. Full article

Green finance policy plays a pivotal role in motivating enterprises to engage in environmental governance. Utilizing data spanning from 2009 to 2024, this research applies the difference-in-differences (DID) method to explore how the Green Finance Reform and Innovation Pilot Zone (GFRIPZ) policy influences the ESG performance of A-share listed companies in China. The findings reveal that the policy significantly enhances corporate ESG performance through three primary channels: alleviating financing constraints, improving profitability, and increasing green innovation capability. Moreover, the policy’s impact exhibits notable heterogeneity across regions and company types. It exerts a positive effect on ESG performance in core cities and southern regions, while its influence is negative or insignificant in non-core cities and northern regions. For high-tech and non-heavily polluting enterprises, the impact is significantly positive; however, for non-high-tech and heavily polluting enterprises, the effect is positive but statistically non-significant. Full article

Sub-Saharan Africa has the potential to achieve sustainable development through facilitating green transition projects, leveraging the revenue generated from its abundant natural resources. However, the resource curse hypothesis suggests that developing nations often face problems with corruption that hinder economic development in these countries. The present study aims to investigate how environmental sustainability can be advanced in Sub-Saharan Africa using revenue from natural resources in the presence of green financial technology and clean energy. Therefore, data for Sub-Saharan Africa from 2000 to 2023 are employed in the analysis. The analysis of these data is undertaken with the ‘Method of Moments Quantile Regression’ technique, and the ‘Panel Correlated Standard Errors’ is used for robustness checks. The key findings presented in this research depict the importance of natural resource rents in supporting sustainable environments in Sub-Saharan Africa. Therefore, the revenue from natural resources can be used to support green transition projects in developing nations with high natural resource endowments. Moreover, renewable energy and green finance foster a reduction in ecological footprint, hence supporting environmental sustainability. Consequently, technological innovation and financial development do not promote the achievement of environmental sustainability, raising questions about the environmental policies and regulations in Sub-Saharan Africa. To this end, there is a need for policy reforms and corruption control in order to prevent the misallocation and misuse of resources designed to support green transition projects. Full article

China’s Green Finance Reform and Innovation Pilot Zones (GFRIPZ) policy has emerged as a central instrument for promoting sustainable urban development and strengthening Urban Ecological and Environmental Resilience (UEER). However, systematic evidence on its actual effectiveness remains scarce. This study applies a difference-in-differences (DID) model to panel data for 279 Chinese cities from 2011 to 2022 to identify the causal impact of the GFRIPZ policy on UEER and to examine its transmission mechanisms and heterogeneity. Specifically, we incorporate green innovation efficiency and environmental regulation intensity to test the technological and regulatory channels through which green finance operates. The empirical results show that: (1) the GFRIPZ policy significantly improves UEER, and this finding is robust across a range of alternative specifications and robustness checks. (2) Green innovation efficiency and environmental regulation intensity serve as key mechanisms through which the policy enhances UEER. (3) The policy effect is stronger in eastern cities, megacities, small cities, and non-resource-based cities, while it is relatively weaker in central and western cities, medium-sized cities, and resource-based cities. These findings provide additional empirical evidence to inform the refinement and further advancement of the GFRIPZ policy and offer evidence-based implications for urban green development strategies. Full article

Driven by carbon neutrality policies, the cumulative issuance volume of the global green bond market has surpassed $2.5 trillion over the past five years, with China, as the second largest issuer, accounting for 15%. However, there exists a yield difference of up to 0.8% for bonds with the same credit rating across different policy regions, and the premium level fluctuates dramatically with market cycles, severely restricting the efficiency of green resource allocation. This study innovatively constructs a Bayesian hierarchical spatiotemporal model framework to systematically analyze pricing deviations through a three-level data structure: the base level quantifies the impact of bond micro-characteristics (third-party certification reduces financing costs by 0.15%), the temporal level captures market dynamics using autoregressive processes (premium volatility increases by 50% during economic recessions), and the spatial level reveals policy regional dependencies using conditional autoregressive models (carbon trading pilot provinces and cities form premium sinkholes). The core breakthroughs are: 1. Designing spatiotemporal interaction terms to explicitly model the policy diffusion process, with empirical evidence showing that the green finance reform pilot zone policy has a radiation radius of 200 km within three years, leading to a 0.10% increase in premiums in neighboring provinces; 2. Quantifying the posterior distribution of parameters using the Markov Chain Monte Carlo algorithm, demonstrating that the posterior mean of the policy effect in pilot provinces is −0.211%, with a half-life of 0.75 years, and the residual effect in non-pilot provinces is only −0.042%; 3. Establishing a hierarchical shrinkage prior mechanism, which reduces prediction error by 41% compared to traditional models in out-of-sample testing. Key findings include: the contribution of policy pilots is −0.192%, surpassing the effect of issuer credit ratings, and a 10 yuan/ton increase in carbon price can sustainably reduce premiums by 0.117%. In 2021, the “dual carbon” policy contributed 32% to premium changes through spatiotemporal interaction channels. The research results provide quantitative tools for issuers to optimize financing timing, investors to identify cross-regional arbitrage, and regulators to assess policy coordination, promoting the transformation of the green bond market from an efficiency priority to equitable allocation paradigm. Full article

Many emerging economies seek to lower carbon intensity while remaining heavily dependent on fossil fuels. This paper examines how sustainable finance, eco-innovation, and the energy mix shape Tunisia’s low-carbon transition. We use quarterly data for 2000–2023 and an econometric environmental-impact model that links carbon intensity to green finance, innovation, renewable and fossil energy, openness, income, and demographic factors. The results show that sustainable finance consistently reduces carbon intensity across all emission states, with stronger effects when emissions are high. The energy mix is crucial: a larger share of renewable energy lowers carbon intensity, while higher fossil energy use increases it and reinforces fossil carbon lock-in. Eco-innovation has its strongest mitigation effects in high-intensity situations, suggesting delayed effects linked to limited absorptive capacity and technology diffusion. Openness and demographic pressure tend to raise emissions through scale and consumption channels. Overall, the findings depict a finance-anchored but energy-constrained transition. They indicate that Tunisia and similar MENA economies can accelerate decarbonization by scaling credible sustainable finance instruments, speeding up renewable deployment, and strengthening the innovation and governance framework that supports green investment, innovation policy, and energy sector reform in semi-industrialized economies. Full article

Rural revitalization constitutes a vital strategic initiative in advancing China’s socialist modernization. At the 2023 Central Economic Work Conference, the objective of building China into a financial powerhouse was formally articulated, thereby establishing higher benchmarks for financial support of rural revitalization. A critical question arising from this agenda is how to simultaneously advance agricultural technological innovation while effectively implementing green development principles. Accordingly, it is essential to investigate the role of the integrated development of sci-tech finance and green finance in promoting rural revitalization. Against this backdrop, this study employs provincial-level panel data from China spanning the period from 2011 to 2021. A two-way fixed effects model is adopted to examine the impact of the integrated development of sci-tech finance and green finance on rural revitalization. The analysis identifies three primary transmission mechanisms: financial supply, green agricultural development, and linkages between smallholder farmers and modern agriculture. Furthermore, the study explores heterogeneity across different financial environments from two dimensions: the level of digital inclusive finance development and the intensity of financial regulation. The empirical results indicate that (1) the integrated development of sci-tech finance and green finance significantly promotes rural revitalization, exhibiting a nonlinear effect whereby its catalytic impact intensifies markedly once the coupling coordination between the two surpasses a critical threshold; (2) such integration alleviates rural financing constraints, enhances agricultural green total factor productivity, and facilitates rural revitalization through the establishment of green agricultural cooperatives; and (3) the enhanced impact of this holistic progress is particularly noticeable in areas with advanced digital financial inclusion and robust financial oversight. In light of these results, this research puts forth three policy suggestions. First, institutional and policy preparations for integrating green finance and sci-tech finance should be accelerated through coordinated government policies, financial product innovation, and financial market reforms. Second, the channels through which sci-tech finance and green finance support rural revitalization should be strengthened by expanding agricultural credit, improving the coverage of rural financial institutions, and fostering specialized green agricultural cooperatives. Third, the financial ecosystem should be optimized by prioritizing investment in digital infrastructure and reinforcing financial supervision throughout the development of digital inclusive finance, particularly in rural regions. Full article

Financial supply side structural reform (FSSR) serves as a key for advancing the low-carbon transformation of industrial energy (LTIE) and supporting the dual carbon strategic goals. By using provincial panel data from China for the period of 2008–2022 and leveraging the national financial comprehensive reform pilot zones as a quasi-natural experiment, this study uses the difference-in-differences method to examine empirically the effect of FSSR on the LTIE and the underlying mechanisms. Research findings indicate that, first, FSSR can significantly advance the LTIE, which remained unchanged after other policies, omitted variables, and other potential influencing factors were controlled. Second, the mechanism tests indicate that FSSR can drive the LTIE by increasing green financial support, fostering green industrial development, and promoting green technological innovation. Third, the heterogeneity tests reveal that the benchmark effect is pronounced in regions with weak environmental regulation and a low level of financial development. This study provides theoretical and empirical evidence to understand the crucial role of FSSR in advancing the LTIE and insights for relevant policy formulation. Full article

In the digital economy, data has emerged a pivotal driver for optimizing resource allocation, enhancing productivity, and accelerating the transition toward environmentally sustainable development. Exploring how the marketization of data elements affects corporate green innovation is of considerable theoretical and practical significance. Using the establishment of data trading platforms in China as a quasi-natural experiment, this study constructs a multi-period difference-in-differences (DID) model based on panel data of A-share listed firms between 2009 and 2022 to investigate the impact of data element marketization on corporate green innovation. The empirical results demonstrate that the marketization of data elements significantly promotes corporate green innovation, and this conclusion remains consistent across a series of robustness checks. Further exploration of the underlying mechanisms reveals that the marketization of data elements fosters green innovation by alleviating financing constraints, improving the structure of human capital, and facilitating collaborative innovation. These mechanisms highlight the role of data markets in strengthening corporate innovation capacity while reinforcing environmental responsibility. Moreover, heterogeneity analyses indicate that the promoting effect is particularly pronounced among firms located in the eastern China, regions equipped with advanced digital infrastructure, industries with lower pollution level, and non-state-owned enterprises. By linking reforms in data governance with green development objectives, this research enriches the growing literature on digital institutional transformation and corporate environmental innovation. The findings provide new empirical evidence that the establishment of data markets constitutes an effective institutional mechanism for advancing green and low-carbon development, offering valuable policy insights for integrating digital economy progress with ecological sustainability. Full article

As a pioneering initiative in the advancement of green finance, China’s Green Finance Reform and Innovation Pilot Zone (GFPZ) offers critical empirical and theoretical insights for the development of a global green financial system. While existing studies highlight the GFPZ’s role in promoting pollution reduction within designated regions, it remains unclear whether its effects extend along supply chains. Exploiting the GFPZ policy as a quasi-natural experiment and employing a difference-in-differences (DID) approach, this study uses panel data from A-share listed companies on the Shanghai and Shenzhen stock exchanges in China from 2013 to 2021 to assess its impact. The findings reveal the following: (1) The GFPZ significantly reduces emissions not only among focal heavily polluting firms but also across their upstream and downstream partners. (2) The primary transmission channel is a financing penalty spillover, whereby the policy intensifies financing constraints and reduces credit access for supply chain firms, compelling them to scale down operations. Notably, the evidence does not support the presence of a Porter effect. (3) Heterogeneity analysis indicates that the spillover effect is more pronounced among upstream suppliers and firms with stronger green capacities, while excessive government subsidies tend to weaken the transmission of policy impacts. Full article

This study investigates the unintended consequences of China’s Green Finance Reform and Innovation Pilot Zones (GFRI) on corporate financialization (CF). Leveraging a Difference-in-Differences (DID) approach and panel data of listed firms in China, we find that GFRI significantly increases firms’ financialization levels. The effect is more pronounced among firms located in eastern regions, non-state-owned enterprises, those with lower ESG ratings, and management teams lacking financial expertise. Mechanism analysis suggests that the policy’s impact is driven by short-term speculative behavior, motivated by liquidity considerations and profit-seeking incentives. These findings reveal a potential misalignment between green finance policy goals and corporate responses, highlighting the importance of designing sustainability initiatives that minimize resource misallocation and support real-sector investment. Full article

Implementing environmental protection taxes implies a shift in environmental policy from government enforcement to market incentives, fostering long-term sustainability. Based on institutional theory, this study explores the nonlinear impact of environmental taxes on corporate green innovation and its influencing mechanism, by considering the complex interaction between innovation offsets and environmental costs. Utilizing data from Chinese A-share listed companies on the Shanghai and Shenzhen stock exchanges during 2012 and 2023, the study reveals an inverse U-shaped relationship between environmental taxes and green innovation performance, within which corporate environmental responsibility functions as a mediator. Furthermore, the results also reveal that the relationship between environmental taxes and green innovation is positively moderated by the development level of regional green finance. In addition, the heterogeneity analyses show that the inverse U-shaped relationship is more pronounced among heavily polluting and large-scale firms, and firms in more marketized areas and areas with higher levels of intellectual property protection. The research enriches the literature on the dual-edged effects of environmental taxes anchored in green innovation and unpacks the internal mechanism of the effectiveness of environmental protection tax policy. It also provides practical implications for the design of tiered taxes and green finance policies aimed at achieving sustainable development. Full article

To evaluate the effectiveness of green finance, this study treats China’s green finance reform and innovation pilot zones as a quasi-natural experiment to assess their impact on urban energy efficiency. This research utilizes a panel dataset of 282 Chinese prefecture-level cities from 2010 to 2023 and employs a multi-period difference-in-differences (DID) model. The core dependent variable, urban green total factor energy efficiency (UGTFEE), is quantified using a non-radial Slack-Based Measure (SBM) efficiency model combined with the Malmquist-Luenberger index. The empirical findings reveal four key points. First, the green finance pilot zones significantly enhance UGTFEE, with policy-affected cities demonstrating an average improvement of approximately 2.0% relative to non-pilot cities. Second, this positive impact is transmitted through two primary mechanisms: the advancement of green technology research and development and the deepening of financial market development. Third, the policy’s effectiveness is heterogeneous, varying according to regional characteristics such as geographical location, environmental regulation stringency, and resource endowments. Finally, a negative spatial spillover is identified, wherein the policy creates a siphoning effect that competitively suppresses the UGTFEE of neighboring cities. These findings provide critical theoretical insights and empirical evidence for optimizing green finance initiatives, thereby facilitating urban industrial transformation toward greater green energy efficiency. Full article

Developing nations, such as the Southern African nations, fail to achieve environmental sustainability because of bad governance and high levels of corruption. The misallocation and misuse of resources and green finance worsen environmental problems in such nations; hence, there is a need for correct policy reforms and improvements in institutional quality if the green transition is to be achieved. However, the literature lacks sound empirical evidence that could unlock this problem and direct us to the adoption of relevant policies. This research is an attempt to examine the role of institutional quality and green financial technology in promoting sustainable environments in Southern African nations with high environmental problems. Therefore, data from the seven Southern African nations from 2000 to 2022 are employed in the analysis. The research model is analyzed with the ‘Methods of Moments Quantile Regression’, which overcomes panel data-related problems such as ‘heterogeneity’ and ‘cross-sectional dependence’. The key findings of this research indicate the symmetric positive influence of institutional quality, green finance and renewable energy in supporting environmental sustainability. Additionally, financial development supports environmental sustainability, but its influence is asymmetric, where positive significant influence is in the lower quantile and weak negative effect in the top quantile. Nonetheless, technological innovation worsens environmental sustainability in the Southern African nations, calling for the need to leapfrog to cleaner technologies that have been adopted in developed nations. Full article

Amid growing economic uncertainty and rising corporate default risks, effective legal reforms are essential for financial stability and sustainable business practices. This study examines the impact of China’s security interest system reform on corporate credit risk, highlighting its implications for corporate social responsibility (CSR) and sustainable development. Using a Difference-in-Differences approach and data from Chinese listed firms, the results show that the reform significantly reduces credit risk, particularly for asset-light, risk-averse, and growth-stage enterprises. Lower credit risk alleviates financing constraints, enabling firms to allocate more resources to Environmental, Social, and Governance (ESG) activities and long-term sustainability initiatives. The findings reveal that legal reforms in secured transactions not only serve as risk management tools but also function as institutional mechanisms that foster CSR engagement and contribute to building a sustainable economic cycle. This research fills a gap in linking legal system reform, credit risk mitigation, and CSR, offering practical insights for future policy design in sustainable finance and green innovation. Full article