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How green finance policy catalyzes innovation in industrial clusters: Lessons from China’s new energy vehicle sector

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  • Liu, Chao
  • Zhang, Jin
  • Wang, Chao
  • Ma, Zhonglin

Abstract

The new energy vehicles (NEVs) sector is a strategic industry within China’s national energy framework, making the exploration of green finance policy’s impact on NEV industry clusters crucial for driving innovation and industry upgrades. This study bases the research on the NEV industry clusters using the Chinese A-share listed NEV enterprises as research samples from 2012 to 2022. Utilizing the difference-in-differences (DID) approach, the study examines clusters’ performance in green innovation after green finance policy is implemented. The findings indicate that green finance policy stimulates green innovation by alleviating financing constraints and enhancing collaboration among enterprises. Additionally, R&D investments boost green finance policy to drive corporate innovation. Notably, green finance policy exerts a more profound impact on enterprises in the central and western regions, especially small and medium-sized enterprises (SMEs) and experienced enterprises. This research sheds light on the intricate mechanisms and varying impacts of green finance policy, serving as a roadmap for enhancing government strategies, fostering superior growth and sustainable innovation in the NEVs sector.

Suggested Citation

  • Liu, Chao & Zhang, Jin & Wang, Chao & Ma, Zhonglin, 2025. "How green finance policy catalyzes innovation in industrial clusters: Lessons from China’s new energy vehicle sector," Structural Change and Economic Dynamics, Elsevier, vol. 75(C), pages 20-31.
    • Handle: RePEc:eee:streco:v:75:y:2025:i:c:p:20-31
    DOI: 10.1016/j.strueco.2025.05.005
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