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Impact of Digital Finance on Green Technology Innovation: The Mediating Effect of Financial Constraints

Author

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  • Decai Tang

    (School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Wenya Chen

    (School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Qian Zhang

    (Business School, Nanjing Xiaozhuang University, Nanjing 211171, China)

  • Jianqun Zhang

    (School of Languages and Communication Studies, Bejing Jiaotong University, Beijing 100044, China)

Abstract

Green technology innovation is crucial for achieving sustainable development. This paper establishes fixed effect and mediation effect models to study how digital finance influences corporate green technology innovation and the moderating role of financial constraints using the data of Chinese A-share public businesses from 2011 to 2020. The results show that, first, green technology innovation is facilitated by digital finance, and both the coverage breadth and use depth play important roles. Second, digital finance encourages business innovation in green technology by alleviating financial constraints. Third, in state-owned businesses and businesses located in the eastern regions, digital finance has a more visible driving impact on green technology innovation. The aforementioned findings offer insightful research to encourage the balanced growth of digital finance and better enable corporate green technology innovation.

Suggested Citation

  • Decai Tang & Wenya Chen & Qian Zhang & Jianqun Zhang, 2023. "Impact of Digital Finance on Green Technology Innovation: The Mediating Effect of Financial Constraints," Sustainability, MDPI, vol. 15(4), pages 1-16, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:4:p:3393-:d:1066569
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    References listed on IDEAS

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    4. Hossain, Mohammad Razib & Rao, Amar & Sharma, Gagan Deep & Dev, Dhairya & Kharbanda, Aeshna, 2024. "Empowering energy transition: Green innovation, digital finance, and the path to sustainable prosperity through green finance initiatives," Energy Economics, Elsevier, vol. 136(C).
    5. Yihua Zhang & Xinxin Hong & Yuan Wang, 2023. "Study on the Coupled and Coordinated Development and Evolution of Digital Economy and Green Technology Innovation," Sustainability, MDPI, vol. 15(10), pages 1-23, May.
    6. Xiaoling Zhao & Mingru Peng & Xing Wang & Rui Xu & Yongze Cui, 2024. "The Effect of Trade Policy Uncertainty on Green Technology Innovation: Evidence from China’s Enterprises," Sustainability, MDPI, vol. 16(16), pages 1-23, August.
    7. Saeid Homayoun & Mohammadreza Pazhohi & Hashem Manzarzadeh Tamam, 2024. "The Effect of Innovation and Information Technology on Financial Resilience," Sustainability, MDPI, vol. 16(11), pages 1-23, May.
    8. Yongpeng Ma & Rosli Mahmood & Annuar Md Nassir & Leyi Zhang, 2025. "Digital Finance and Green Technology Innovation: A Dual-Layer Analysis of Financing and Governance Mechanisms in China," Sustainability, MDPI, vol. 17(20), pages 1-25, October.
    9. Ying Fu & Zhaohan Wang & Yun Wang, 2024. "Green Financial Policy for Fostering Green Technological Innovation: The Role of Financing Constraints, Science Expenditure, and Heightened Industrial Structure," Sustainability, MDPI, vol. 16(20), pages 1-26, October.
    10. Lingjuan Xu & Yijiang Liu & Beibei Xiang & Qunwei Wang, 0000. "The Impact of Digital Finance on the High-quality development of Manufacturing Industry: Evidence from China," Proceedings of Economics and Finance Conferences 14716391, International Institute of Social and Economic Sciences.
    11. Yan Yao & Zihong Ma, 2025. "Will Digital Inclusive Finance Improve the Quality and Quantity of SMEs’ Green Innovation?," Sustainability, MDPI, vol. 17(6), pages 1-19, March.
    12. Yalin Mo & Yuchen Che & Wenqiao Ning, 2023. "Digital Finance Promotes Corporate ESG Performance: Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-23, July.
    13. Shenyuan Zhang & Rufei Ma, 2025. "Managerial Climate Awareness, Institutional Investors, and Firms’ Sustainability Performance: Evidence from China," Sustainability, MDPI, vol. 17(5), pages 1-26, February.
    14. Lu Kang & Jie Lv & Haoyang Zhang, 2024. "Can the Water Resource Fee-to-Tax Reform Promote the “Three-Wheel Drive” of Corporate Green Energy-Saving Innovations? Quasi-Natural Experimental Evidence from China," Energies, MDPI, vol. 17(12), pages 1-38, June.
    15. Zhaoqing Sun & Jianxu Liu & Roengchai Tansuchat, 2023. "China’s Digital Economy and Enterprise Labor Demand: The Mediating Effects of Green Technology Innovation," Sustainability, MDPI, vol. 15(15), pages 1-24, July.
    16. Xuan, Siyuan & Ge, Wenfeng & Yang, Ping & Zhang, Yunfeng, 2024. "Exploring digital finance, financial regulations and carbon emission nexus: New insight from resources efficiency, industrial structure and green innovation in China," Resources Policy, Elsevier, vol. 88(C).
    17. Ibrahim Mutambik, 2024. "Digital Transformation as a Driver of Sustainability Performance—A Study from Freight and Logistics Industry," Sustainability, MDPI, vol. 16(10), pages 1-19, May.
    18. Wei Qiu & Yinghua Li & Haitao Wu, 2023. "The role of direct financing on regional green development: inhibition or promotion?," Economic Change and Restructuring, Springer, vol. 56(5), pages 3665-3699, October.
    19. Jiayi Li & Shujun Ye & Shujuan Wang, 2023. "Spatial Network Analysis on the Coupling Coordination of Digital Finance and Technological Innovation," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    20. Hao Liang & Muttahir Hussain & Amir Iqbal, 2025. "The Dynamic Role of Green Innovation Adoption and Green Technology Adoption in the Digital Economy: The Mediating and Moderating Effects of Creative Enterprise and Financial Capability," Sustainability, MDPI, vol. 17(7), pages 1-28, April.

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