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How do heterogeneous green financial policy tools affect pollution emission reduction of enterprises?

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  • Wang, Shanshan
  • Wang, Shugang
  • Cheng, Yiqian

Abstract

This paper examines how the green financial policy tools affect enterprise pollutant emission. The results show that: heterogeneous green financial policy tools can reduce pollution emissions of enterprises, which is supported by a series of robustness tests. However, the pollution emission reduction effect driven by heterogeneous green financial policy tools is different. The pollution emission reduction effect induced by heterogeneous green financial policy tools is gradually strengthened with the increase of lag period. The micro-emission reduction effect of green finance mainly comes from green innovation incentives, increased investment in environmental protection and improved production efficiency.

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  • Wang, Shanshan & Wang, Shugang & Cheng, Yiqian, 2025. "How do heterogeneous green financial policy tools affect pollution emission reduction of enterprises?," Finance Research Letters, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:finlet:v:77:y:2025:i:c:s1544612325003848
    DOI: 10.1016/j.frl.2025.107121
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