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The Impact of Green Finance and Technological Innovation on Corporate Environmental Performance: Driving Sustainable Energy Transitions

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  • Sonia Chien-i Chen

    (School of Economics, Qingdao University, Qingdao 266071, China)

  • Xinlei Xu

    (School of Economics, Qingdao University, Qingdao 266071, China)

  • Chung-Ming Own

    (College of Intelligence and Computing, Tianjin University, Tianjin 300072, China)

Abstract

As global sustainability imperatives increase, understanding how green finance policies and technological innovation influence corporate environmental performance has become a relevant issue. This study examines the impact of green finance on corporate environmental practices, particularly focusing on how innovation enhances sustainable energy transitions. A difference-in-differences (DID) approach was employed. This research compares corporate environmental performance before and after the implementation of green finance policies across treated and control groups. This method allows for isolating the effect of green finance by controlling for temporal and individual factors, providing robust insights into policy efficacy. Our findings indicate a statistically significant improvement in environmental performance, particularly among larger, state-owned enterprises in China’s eastern regions. The findings also underscore the moderating role of innovation in optimizing green finance outcomes. Finally, important implications for policymakers aiming to drive corporate sustainability are offered.

Suggested Citation

  • Sonia Chien-i Chen & Xinlei Xu & Chung-Ming Own, 2024. "The Impact of Green Finance and Technological Innovation on Corporate Environmental Performance: Driving Sustainable Energy Transitions," Energies, MDPI, vol. 17(23), pages 1-18, November.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:23:p:5959-:d:1530728
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    References listed on IDEAS

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    Cited by:

    1. Nor Amira Mohd Ali & Muhammad Hanif Abdul Gafar, 2026. "The Green Value Paradigm: A Review on Advancing Corporate Environmental Sustainability in the 21st Century," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(5), pages 1366-1379, May.
    2. Wei Jiang & Jingang Jiang & Sonia Chien-I Chen, 2025. "Untangling Carbon–Clean Energy Dynamics: A Quantile Granger-Causality Perspective," Sustainability, MDPI, vol. 17(7), pages 1-20, April.
    3. Shunping Teng & Haslindar Ibrahim, 2025. "The Green Finance Reform Pilot Zone Policy and Corporate Sustainable Development Performance: A Quasi-Natural Experiment from China," Sustainability, MDPI, vol. 17(15), pages 1-19, July.
    4. Li, Xintian & Yong, Hui, 2025. "The impact of green finance on the environmental performance of industrial enterprises: The moderating role of digital transformation," Finance Research Letters, Elsevier, vol. 86(PG).
    5. Ruotong Liu & Yike Wang & Chengkun Liu, 2025. "Can Green Policy Enhance Corporate Environmental Performance? Evidence from China’s New Energy Demonstration City Policy," Energies, MDPI, vol. 18(19), pages 1-27, October.
    6. Le Thanh Ha, 2025. "Deploying green macroprudential policies to promote environmental health: new findings from panel VAR for international database," Environment Systems and Decisions, Springer, vol. 45(3), pages 1-21, September.

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