Effect of green financial reform and innovation pilot zones on corporate investment efficiency

Yan, Cheng; Mao, Zhicheng; Ho, Kung‐Cheng

doi:10.1016/j.eneco.2022.106185

Cited by 51 publications

(24 citation statements)

References 54 publications

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“…Some scholars used the establishment of GFRIs as a natural experiment to explore the implementation effects of green finance policies. The establishment of GFRIs reduces enterprises' inefficient and excessive investment in the pilot zone, improves their investment efficiency (Yan et al, 2022), and helps enterprises obtain higher SEG scores through environmental, social, and governance mechanisms (Chen et al, 2022). The establishment of GFRIs improves enterprises' quality and quantity of green innovation (Zhang and Li, 2022).…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

Has the establishment of green finance reform and innovation pilot zones improved air quality? Evidence from China

Xie

Obobisa

et al. 2023

Humanit Soc Sci Commun

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The role of finance in environmental sustainability is becoming increasingly important. This study conducts a quasi-natural experiment using a sample of 146 prefecture-level cities from 2015 to 2019. It adopts difference-in-differences to examine the impact of China’s green finance reform and innovations pilot zones (GFRIs) on urban air quality. The findings show that air quality has improved after the establishment of GFRIs, indicating that GFRIs have the potential to control air pollution levels. The mechanism tests indicate that the GFRIs are conducive to improving air quality through industrial structure upgrading and green innovation. Furthermore, the heterogeneity analyses show that the air quality in the south of the Qinling Mountains-Huaihe River line, in large and well-developed financially scaled cities, has improved significantly after the establishment of GFRIs.

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Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

Has the establishment of green finance reform and innovation pilot zones improved air quality? Evidence from China

Xie

Obobisa

et al. 2023

Humanit Soc Sci Commun

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“…In recent years, green-finance products have emerged continually in China, and related policies and systems have been continually improved. In 2017, the executive meeting of the State Council deployed the construction of Green Finance Reform and Innovation Pilot Zones (GFPZ), deciding to take Guangzhou City in Guangdong Province, Huzhou City and Quzhou City in Zhejiang Province, Guian New District in Guizhou Province, Ganjiang New District in Jiangxi Province, and Hami City, Changji Prefecture, and Karamay City in Xinjiang Uygur Autonomous Region as the first batch of pilot zones, with a focus on promoting green-finance reform and innovation in terms of green-finance standards and innovation in green-finance product services [ 51 ]. This is further innovation and exploration in the field of green finance, which can utilize the endowments of the pilot area, such as the level of economic development and industrial structure, to form a "green-finance sample" that can be drawn on and copied, leading to a "Chinese proposal" for green-finance policy and practice in the new era.…”

Section: Policy Background and Research Hypothesesmentioning

confidence: 99%

Green finance improves enterprises’ environmental, social and governance performance: A two-dimensional perspective based on external financing capability and internal technological innovation

Zhang,

Wei

2024

PLoS ONE

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This paper takes the establishment of the Green Financial Reform and Innovation Pilot Zone (GFPZ) in 2017 as a natural experiment, adopts the data of a-share industrial listed enterprises in Shanghai and Shenzhen from 2010 to 2020, and utilizes the difference-in-differences (DID) method to carry out empirical tests. The results show that (1) GFPZ policy significantly improves the environmental, social, and governance (ESG) performance of enterprises, and the positive effect is mainly realized by improving the external financing ability and green-technology innovation level of enterprises. (2) There is heterogeneity in the impact of GFPZ policy on the ESG performance of firms with different equity natures and internal control levels. (3) Green finance promotes active corporate social responsibility, and it can further improve environmental governance in the regions where it operates. This paper provides a useful supplement to the comprehensive understanding of green-finance policy effects and ESG impact factors, and it is of great significance in mitigating the negative environmental and social externalities caused by the excessive pursuit of economic benefits by enterprises.

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“…The GFPP accelerates green transformation through financing punishment and investment inhibition effects, improves unit resource output levels, and then improves TFEE. In addition, GFPP affects social expectations by releasing policy signals, guides social funds to green and innovative industries, upgrades industrial structures (Yan et al, 2022), and ultimately promotes TFEE improvement.…”

Section: Impact Mechanism Of Green Finance Pilot Policy On Total Fact...mentioning

confidence: 99%

China’s green finance and total factor energy efficiency

Zhou

2023

Front. Energy Res.

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Based on data on 280 prefecture-level cities from 2008 to 2019, this study uses a difference-in-difference (DID) model to first analyze the impact of China’s green finance pilot policy (GFPP) on total factor energy efficiency (TFEE) and then further investigate the mediating and heterogeneous effects of GFPP. Results indicate that first, GFPP effectively improves TFEE, and the robustness tests show that the estimation results are reliable. Second, GFPP mainly improves TFEE by promoting industrial structure optimization and green technology innovation. Last, the role of GFPP in improving TFEE is mainly reflected in cities with high environmental protection enforcement and intellectual property protection. Therefore, China must expand the GFPP scope, further improve the local green finance practice capability, actively guide green fund to support energy technology innovation, accelerate green industrial transformation, and pool social forces to jointly promote green economic development.

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Effect of green financial reform and innovation pilot zones on corporate investment efficiency

Cited by 51 publications

References 54 publications

Has the establishment of green finance reform and innovation pilot zones improved air quality? Evidence from China

Has the establishment of green finance reform and innovation pilot zones improved air quality? Evidence from China

Green finance improves enterprises’ environmental, social and governance performance: A two-dimensional perspective based on external financing capability and internal technological innovation

China’s green finance and total factor energy efficiency

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