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Research on the game of green finance driving corporate digital transformation under the carbon trading mechanism

Author

Listed:
  • Zhang, Miao
  • Dong, Xiaoni
  • Yin, Xiaoyan
  • Wang, Chonghong

Abstract

This study employs an evolutionary game model to investigate the impact of green finance and carbon trading on corporate digital transformation. The model examines the synergies and challenges of carbon trading and green finance for governments, financial institutions, and enterprises. Findings indicate that the government is most responsive to additional profits, promoting regulatory enforcement; however, this does not significantly impact corporate strategies. Enterprises often abandon transformation efforts due to the high cost of digital transformation, which leads the government to loosen regulations. As green loan rates decrease and conventional rates increase, financial institutions shift toward conventional loans. Finally, market-driven carbon trading prices have a greater impact on enterprises than internal emissions.

Suggested Citation

  • Zhang, Miao & Dong, Xiaoni & Yin, Xiaoyan & Wang, Chonghong, 2025. "Research on the game of green finance driving corporate digital transformation under the carbon trading mechanism," Finance Research Letters, Elsevier, vol. 85(PE).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pe:s1544612325014060
    DOI: 10.1016/j.frl.2025.108151
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    References listed on IDEAS

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