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How Does Green Insurance Affect Green Innovation? Evidence from China

Author

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  • Yucai Hu

    (School of Economics and Management, Yanshan University, Qinhuangdao 066004, China)

  • Shaorui Du

    (School of Economics and Management, Yanshan University, Qinhuangdao 066004, China)

  • Yukun Wang

    (School of Economics and Management, Yanshan University, Qinhuangdao 066004, China)

  • Xinya Yang

    (School of Economics and Management, Yanshan University, Qinhuangdao 066004, China)

Abstract

In the context of the rapid development of green finance, this paper examines the impact of green insurance on green innovation. Based on panel data of listed firms from 2008 to 2020, we find that green insurance significantly increased firms’ green patent applications. The mechanisms driving this positive relationship between green insurance and green innovation include that the insured firms are able to obtain more resources, are more willing to take risks, and are more likely to have a long-term vision. Further analysis shows that green insurance can enhance a firm’s environmental performance by promoting green innovation. This study deepens our understanding of green insurance and enriches the research related to green finance.

Suggested Citation

  • Yucai Hu & Shaorui Du & Yukun Wang & Xinya Yang, 2023. "How Does Green Insurance Affect Green Innovation? Evidence from China," Sustainability, MDPI, vol. 15(16), pages 1-15, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:16:p:12194-:d:1213813
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    2. Li, Weina & Wang, Hongchang, 2026. "The impact of digital empowerment on corporate green innovation: The moderating role of environmental regulation," Finance Research Letters, Elsevier, vol. 87(C).
    3. Junying Chen & Yuxin Luo & Junzhi Fang, 2025. "Spatial-Temporal Evolution and Driving Factors of the Synergistic Development of Green Finance and Low-Carbon Innovation," Sustainability, MDPI, vol. 17(18), pages 1-32, September.
    4. 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.
    5. Andreea Larisa Olteanu (Burca) & Alina Elena Ionascu & Daniel Lipara, 2025. "Best Practices in Internal Control, Auditing, and Sustainable Investment Efficiency," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 564-571, August.
    6. Zhiqiang Liang & Yao Shen & Kunyu Yang & Jinsong Kuang, 2024. "The Impact of High-Tech Enterprise Certification on Green Innovation: Evidence from Listed Companies in China," Sustainability, MDPI, vol. 17(1), pages 1-21, December.
    7. Yuan, Xiao & Zhang, Jinlong & Shi, Jing & Wang, Jiachen, 2024. "What can green finance do for high-quality agricultural development? Fresh insights from China," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    8. Yucai Hu & Jiancheng Liu & Ruotong Hao & Jiaxin Shen & Shanshan Fan, 2025. "The Impact of Carbon Emissions Trading and Market Participants on Green Innovation: A Synergistic Effect," Sustainability, MDPI, vol. 17(5), pages 1-24, February.
    9. Qihao He & Michael Faure, 2024. "Strengthening Resilience and Sustainability for Post-Disaster Recovery: A Comparative Law and Economics Analysis on Smart Mixes Between Mechanisms," Sustainability, MDPI, vol. 16(21), pages 1-27, November.
    10. Xu, Ting & Xuan, Siyuan & Xuan, Xiaoqin, 2025. "Green finance as a catalyst for energy transition: Green total factor productivity and digital economy," International Review of Financial Analysis, Elsevier, vol. 107(C).
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    12. Rui Zhu & Pengfei Ge & Chuxiong Tang, 2026. "Can policy synergy empower green innovation? Theoretical and empirical insights from China," Economic Change and Restructuring, Springer, vol. 59(1), pages 1-46, February.

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