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Green finance and firm carbon emissions: evidence from China

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  • Zheng Fang
  • Tianyu Zhang
  • Muhammad Zahid Rafique

Abstract

In the context of critical global climate change, China, one of the significant carbon emitters worldwide, has begun to utilize green finance to reduce carbon emissions actively. To study the impact of green finance on enterprise carbon emissions, we selected Chinese-listed companies from 2009 to 2022 as our research object. We found that green finance can help enterprises reduce carbon emissions by promoting green innovation and enhancing green factor productivity. The impact of green finance on reducing carbon emissions is significant for both state-owned and non-high-tech firms. Our study reveals the positive impact of green finance on enterprises, which is of crucial significance for further optimizing green finance policy practices and achieving carbon peaking and neutrality.

Suggested Citation

  • Zheng Fang & Tianyu Zhang & Muhammad Zahid Rafique, 2026. "Green finance and firm carbon emissions: evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 33(10), pages 1491-1495, June.
  • Handle: RePEc:taf:apeclt:v:33:y:2026:i:10:p:1491-1495
    DOI: 10.1080/13504851.2024.2440067
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