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Curbing financial Greenwashing: Policy tools, legal mechanisms, and corporate responsibility for sustainable development

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  • Wu, Dan
  • Zuo, Xiangbin

Abstract

This study examines the internal mechanisms underlying financial greenwashing and assesses the synergistic effects of policy instruments and legal frameworks in mitigating such behavior. The results indicate that enhancing regulatory oversight, optimizing incentive policies, and tightening information disclosure requirements effectively reduce financial greenwashing, while improvements to legal frameworks can further strengthen policy implementation. The combined use of policy instruments and legal mechanisms demonstrates significant efficacy in curbing financial greenwashing. Policymakers should therefore consider employing diverse policy instruments and emphasize coordination with legal frameworks.

Suggested Citation

  • Wu, Dan & Zuo, Xiangbin, 2025. "Curbing financial Greenwashing: Policy tools, legal mechanisms, and corporate responsibility for sustainable development," International Review of Economics & Finance, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025006434
    DOI: 10.1016/j.iref.2025.104480
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