How Does Green Financial Reform Impact Carbon Emission Reduction and Pollutant Mitigation in Chinese Manufacturing Enterprises?

Manufacturing enterprises, as significant contributors to high carbon emissions, play a crucial role in effectively reducing carbon emission intensity, which is essential for China to successfully achieve its “dual carbon” goals. This study examines the period from 2010 to 2022, focusing on manufacturing enterprises listed on the Shanghai and Shenzhen A-shares to investigate the effects of green financial reform on carbon and pollutant emissions. Our findings reveal that the results from the parallel trend test and the regression analysis of the Difference-in-Differences (DID) model indicate that the implementation of green financial reform has a negative impact on the carbon and pollutant emissions of manufacturing enterprises, which is supported by a series of robustness tests. Heterogeneity analysis shows that the emission reduction effect of green financial reform on pollutants is significant only in manufacturing enterprises with low industry competitiveness, while the inhibitory effect on carbon emissions is significant only in those with high industry competitiveness. Furthermore, the emission reduction effects are significant in highly polluting industries, non-state-owned enterprises, and small-scale firms. Green technological innovation and financing constraints serve as the channels connecting green financial reform with emission reduction and carbon mitigation. The tax burden negatively moderates this process, while environmental, social, and governance (ESG) performance positively moderates it.