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The Impact of Green Finance on Urban Haze Pollution in China: A Technological Innovation Perspective

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  • Yiting Zeng

    (School of Economics and Business Administration, Chongqing University, Chongqing 400030, China)

  • Feng Wang

    (School of Economics and Business Administration, Chongqing University, Chongqing 400030, China
    Institution of Energy Economics, Chongqing University, Chongqing 400030, China)

  • Jun Wu

    (School of Economics and Business Administration, Chongqing University, Chongqing 400030, China)

Abstract

Green finance integrates the concept of environmental governance into the financial industry, which is conducive to sustainable development. Applying the mediating effect model, this paper investigates the effect of green finance on urban haze pollution and explores the mediating role of technological innovation of enterprises between them. Based on a sample of 639 enterprises in China over 2016–2019, a significantly negative effect of green finance on urban haze pollution is found. An increase of one standard deviation in green finance decreases PM2.5 concentration by 8.8 μg/m 3 , ceteris paribus. Further, green finance may improve environmental quality by promoting technological innovation. Considering the heterogeneity of enterprise ownership, this mediating effect exists in non-state-owned enterprises, while it cannot be observed in state-owned enterprises. This study proposes a new solution for pollution: using green financial tools to promote environmentally friendly technological progress.

Suggested Citation

  • Yiting Zeng & Feng Wang & Jun Wu, 2022. "The Impact of Green Finance on Urban Haze Pollution in China: A Technological Innovation Perspective," Energies, MDPI, vol. 15(3), pages 1-20, January.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:3:p:801-:d:731047
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    References listed on IDEAS

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    1. Yu, Chin-Hsien & Wu, Xiuqin & Zhang, Dayong & Chen, Shi & Zhao, Jinsong, 2021. "Demand for green finance: Resolving financing constraints on green innovation in China," Energy Policy, Elsevier, vol. 153(C).
    2. Xiaoxi Li, 2014. "Scientific development and a new green deal," China Finance and Economic Review, Springer, vol. 2(1), pages 1-8, December.
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