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Can green finance reform and innovation policies promote corporate carbon performance?

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  • Li, Ziwei
  • Wang, Xingyu
  • Wu, Zhuang

Abstract

Green finance can provide financial support for green and low-carbon development. Based on data of Chinese A-share listed companies from 2012 to 2020, this study conducts empirical analyses using the difference-in-differences method. The results demonstrate that China's green financial reform and innovation policies can significantly improve corporate carbon performance. And green financial reform and innovation policies have the most significant effect on enterprises’ carbon performance in the eastern region, followed by the central region, and have little effect on enterprises in the western region. This study provides lessons for low-carbon governance by governments and low-carbon development by enterprises.

Suggested Citation

  • Li, Ziwei & Wang, Xingyu & Wu, Zhuang, 2024. "Can green finance reform and innovation policies promote corporate carbon performance?," Finance Research Letters, Elsevier, vol. 62(PB).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002332
    DOI: 10.1016/j.frl.2024.105203
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    References listed on IDEAS

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    3. Liu, Xiaoqian & Cifuentes-Faura, Javier & Wang, Chang'an & Wang, Long, 2025. "Can green finance policy reduce corporate carbon emissions? Evidence from a quasi-natural experiment in China," The British Accounting Review, Elsevier, vol. 57(5).
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    5. Kai Sun & Xin Zhong & Ding Xiong, 2025. "Does Institutional Opening‐Up Enhance Corporate Green Innovation? Evidence From China's Pilot Free Trade Zones," American Journal of Economics and Sociology, Wiley Blackwell, vol. 84(5), pages 823-840, November.
    6. Yang, Jiahui & Wang, Si & Xu, Lei, 2025. "Green finance innovation and corporate resilience: Evidence from China's reform zones," Finance Research Letters, Elsevier, vol. 81(C).
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    8. Yanwei Lyu & Xuan Xiao & Jinning Zhang, 2025. "Green finance policy and corporate carbon emissions: advancing corporate sustainability," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-15, December.
    9. Liu, Jiexian & Liang, Gaoyang, 2025. "Green finance, green governance performance, and the ESG performance: Evidence from a quasi-natural experiment," Finance Research Letters, Elsevier, vol. 84(C).
    10. Xiang Liu & Sizhen Xu & Ke Zou & Jia Liu & Man Yuan, 2025. "Green Finance and Carbon Emissions in China: Multilevel Transmission Mechanisms and Regional Heterogeneity," SAGE Open, , vol. 15(4), pages 21582440251, December.
    11. Xingcun Qin & Genglin Dong & Pengcheng Xie & Yulong Zhang & Cuiping Liao, 2024. "Impact of Green Finance on Carbon Emission Efficiency and Spatial Spillover Effects: A Case Study of Guangzhou, China," Sustainability, MDPI, vol. 16(23), pages 1-22, November.
    12. Zhang, WeiDa & Huang, YuMeng & Li, QingXin, 2026. "How do green finance reform pilot zones affect public welfare?," Finance Research Letters, Elsevier, vol. 89(C).
    13. Jiang, Miaoyi & Ma, Jun, 2025. "Policy, investment, and growth: How green finance drives corporate sustainable development?," International Review of Economics & Finance, Elsevier, vol. 102(C).
    14. Liu, Xiuli & Cui, Jing & Chang, Yukun & Bai, Chunguang & Yue, Xiaohang & Shen, Jun & Shi, Qinqin, 2026. "Facilitating net-zero emissions goals through green finance: Enhancing efficiency in corporate green innovation within a two-stage value chain framework," International Journal of Production Economics, Elsevier, vol. 292(C).
    15. Wang, Yang & Zhang, Kexin, 2025. "Industrial and financial cooperation, heterogeneous green technological innovation, and urban low carbon transformation," International Review of Economics & Finance, Elsevier, vol. 102(C).

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    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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