IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-874-5_43.html

The Impact of Green Finance on Corporate Financing Costs

In: Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025)

Author

Listed:
  • Yuhan Hu

    (Beijing Institute of Technology, School of Management)

Abstract

Green finance has developed rapidly due to the Paris Agreement and people’s growing concern for environmental protection and green development, exerting a profound impact on corporate financing. This study focuses on how green finance affects corporate financing costs and its specific mechanisms. Through a literature review and case comparison analysis, it reveals three core mechanisms. First, risk mitigation mechanism: green financial tools reduce environmental and social risks, improve credit ratings, and lower risk premiums. Next, policy incentive mechanism: the government directly reduces the capital cost of green projects through subsidies, tax incentives, and regulatory preferences. Last, market-driven mechanism: investors’ preference for ESG-compliant assets creates a green premium, lowering the yield of green bonds and broadening financing channels. The study highlights the substantive benefits of green finance through case analysis and comparison, providing key evidence for governments to improve the green finance system and for enterprises to optimize their sustainable transformation financing strategies.

Suggested Citation

  • Yuhan Hu, 2025. "The Impact of Green Finance on Corporate Financing Costs," Advances in Economics, Business and Management Research, in: Maizaitulaidawati Md Husin (ed.), Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025), pages 349-357, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-874-5_43
    DOI: 10.2991/978-94-6463-874-5_43
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Al Dhahri, Haitham & Hussain, Murid & Ghani, M.A.A. & Inayat, Abrar & Al-Muhtaseb, Ala'a H. & Al-Haj, Lamya & Jamil, Farrukh, 2026. "Green hydrogen production via electrolysis: Materials innovation, system integration, and global deployment pathways," Renewable and Sustainable Energy Reviews, Elsevier, vol. 229(C).

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:advbcp:978-94-6463-874-5_43. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.