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Green Finance Reform: How to Drive a Leap in the Quality of Green Innovation in Enterprises?

Author

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  • Shuying Chen

    (School of Economics and Management, Yiwu Industrial & Commercial College, Yiwu 322000, China)

  • Da Gao

    (School of Law and Business, Wuhan Institute of Technology, Wuhan 430205, China)

  • Linfang Tan

    (School of Economics and Management, Wuhan University, Wuhan 430072, China)

Abstract

Improving green innovation quality is a critical component for speeding green transformation and generating high-quality growth. This study examines the link between the pilot zone for green finance reform and innovations (PZGFRI) policy and the quality of green innovation in Chinese A-share listed firms from 2010 to 2020. This study demonstrates that the PZGFRI may greatly enhance the quality of enterprises’ green innovation. Additionally, by promoting environmental investment and reducing financial barriers, we use the mediating effect model to confirm that the PZGFRI improves the enterprises’ quality of green innovation. Meanwhile, the heterogeneity analysis demonstrates that the PZGFRI is more successful in raising the green innovation quality in state-owned, large-sized, and heavily polluting businesses. Our study’s findings offer a strong theoretical basis for improving the PZGFRI and encouraging businesses to undergo high-quality transformation.

Suggested Citation

  • Shuying Chen & Da Gao & Linfang Tan, 2025. "Green Finance Reform: How to Drive a Leap in the Quality of Green Innovation in Enterprises?," Sustainability, MDPI, vol. 17(15), pages 1-27, August.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:15:p:7085-:d:1717788
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