Will green financial policy help improve China’s environmental quality? the role of digital finance and green technology innovation

Hou, Hui; Zhu, Youbin; Wang, Jian; Zhang, Minglang

doi:10.1007/s11356-022-22887-z

Cited by 52 publications

(17 citation statements)

References 69 publications

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“…Recent research finds that the implementation of GFP can bring multiple macro‐benefits. It helps cope with energy issues (Cheng et al, 2023; Zhang, Wang, et al, 2023) and improve environmental quality (Hou et al, 2023), thus mitigating ecological problems; it also helps optimize industrial structure (Hu & Zhang, 2023) and promote regional green innovation (Irfan et al, 2022), thus providing new impetus for economic growth. The GFP also influences firm decisions, behaviors, and outcomes.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…Since 2017, China has gradually established national pilot zones in some selected regions to promote green finance reform and innovation. Referring to the existing literature (see e.g., Hou et al, 2023; Huang, Mbanyele, et al, 2022; Lyu et al, 2023), we set a dummy variable to capture the treatment effect of GFP. The value of 1 is taken if firm

i

is located in pilot regions in year

t

; otherwise, the value of 0 indicates that firm

i

is located in non‐pilot regions in year

t

.…”

Section: Empirical Research Designmentioning

confidence: 99%

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Striving for sustainable development: Green financial policy, institutional investors, and corporate ESG performance

Lei,

2023

Corp Soc Responsibility Env

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Environmental, social, and governance (ESG) practices play an increasingly important role in achieving sustainable development goals. Drawing on institutional theory, this paper empirically explores whether and how green financial policy affects corporate ESG performance. Taking China's pilot policy for green finance reform and innovation (GFP) as a quasi‐natural experiment, we employ the difference‐in‐differences model to investigate the causal relationship between green financial policy and corporate ESG performance. We find that the GFP significantly improves corporate ESG performance. The results are robust to a series of checks such as parallel trend examination, placebo test, mitigation of omitted variable bias, alternative variables, and the exclusion of contemporaneous policies. The heterogeneity analysis shows that the positive impact of GFP on corporate ESG performance is more pronounced for firms with tighter financial constraints, higher agency costs, and more external pressures. On this basis, we further document that the positive impact of GFP on corporate ESG performance is more pronounced for investee firms with more institutional ownership. The above findings indicate that the formal institution of government‐led green financial policy can positively affect corporate ESG performance, and market participants‐institutional investors help to strengthen this policy effect. Overall, our study sheds light on the significant role of green financial policy in promoting corporate sustainability.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

i

is located in pilot regions in year

t

; otherwise, the value of 0 indicates that firm

i

is located in non‐pilot regions in year

t

.…”

Section: Empirical Research Designmentioning

confidence: 99%

Striving for sustainable development: Green financial policy, institutional investors, and corporate ESG performance

Lei,

2023

Corp Soc Responsibility Env

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“…The major results highlighted the role of green finance in lowering urban energy intensity. Hou et al (2022) concentrated on five provinces in China in 2017 to explore the role of green financial policies in promoting environmental quality. They employed a differencein-differences model and concluded that green finance has a heterogeneous effect among the examined provinces.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Based on a summary of the most recent research, it can be said that many studies have been conducted on green finance in China; however, it seems that the results of such research are not useful to policymakers. Hou et al (2022) have shown that the impact of green financing on climate threats in China is heterogeneous across different provinces. Additionally, the STIRPAT method, as a supporting theory of the econometric model, has rarely been used (see Dong et al, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

Green finance, renewable energy development, and climate change: evidence from regions of China

Sun

Bao

Taghizadeh–Hesary

2023

Humanit Soc Sci Commun

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In this study, using data from 2010 to 2021, and by utilizing the stochastic impacts by regression on population, affluence, and technology (STIRPAT) theory, and system generalized method of moments, the effect of green financing and deployment of renewable energy on carbon dioxide emissions in China and its provinces were analyzed. The results show that green financing reduces environmental pollution at the country level. Moreover, with a 1% increase in renewable energy consumption, carbon dioxide emission can be expected to decrease by 0.103%. It also demonstrates that green financing has a statistically significant coefficient only in provinces located in the eastern and western regions. Chinese policymakers should incentive policies for provinces in the eastern region of China in order to have a cleaner environment. The central region should be under supportive and pressure policies to move faster along the path to sustainable development.

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“…In view of this, based on the international literature data in the field of green finance collected in the Web of Science (WoS) database since 2016, this paper uses conventional statistical methods and the VOSviewer literature visualization tool to map the knowledge areas of international green finance research, sort out the changes of research hotspots in this field, dig into the current political and market information behind the changes of keywords [13], and at the same time We also summarize the future trends in order to provide some reference for the future theoretical and practical research on green finance [14].…”

Section: Introductionmentioning

confidence: 99%

International Green Finance Research Progress, Hotspot Analysis and Trend Outlook--Based on VOSviewer's Bibliometric Analysis

2022

FERM

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The issue of "double carbon" target climate change has attracted widespread attention in the international arena. Based on the Web of Science database, this paper draws the knowledge map of international green finance research field by using the visualization and analysis software VOSviewer with a total of 1567 green finance-related literature from 2016 to 2022 as samples. The research keywords include sustainable development, environmental performance, carbon emission reduction, etc.; the clustering of research themes mainly includes four major directions: carbon emission reduction, green innovation, green policy and risk management; the combination of green finance with inclusive finance, digital finance and green consumption should become the future of international green finance research. The research on green finance combined with inclusive finance, digital finance and green consumption should become the key focus areas of international green finance research in the future.

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Will green financial policy help improve China’s environmental quality? the role of digital finance and green technology innovation

Cited by 52 publications

References 69 publications

Striving for sustainable development: Green financial policy, institutional investors, and corporate ESG performance

Striving for sustainable development: Green financial policy, institutional investors, and corporate ESG performance

Green finance, renewable energy development, and climate change: evidence from regions of China

International Green Finance Research Progress, Hotspot Analysis and Trend Outlook--Based on VOSviewer's Bibliometric Analysis

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