TY - JOUR
T1 - Productivity gains from green finance
T2 - A holistic and regional examination from China
AU - Guo, Yunxia
AU - Yu, Mengyao
AU - Xu, Mingchen
AU - Tang, Ying
AU - Huang, Jingran
AU - Liu, Jia
AU - Hao, Yu
N1 - Funding Information:
The authors acknowledge financial support from National Natural Science Foundation of China ( 72073010 , 72321002 ), the Science and Technology Program of Zhejiang Province of China ( 2022C35060 ), the Technology Innovation Program of Beijing Institute of Technology ( 2022CX01013 ), and the Joint Development Program of the Beijing Municipal Commission of Education. The usual disclaimer applies.
Publisher Copyright:
© 2023 Elsevier B.V.
PY - 2023/11/1
Y1 - 2023/11/1
N2 - The productivity channel is extensively explored as a key mechanism through which finance influences economic growth. This paper specifically aims to assess the effect of green finance (GF) on firms' total factor productivity (TFP) using matched data on 2246 listed companies and their respective provinces in China from 2011 to 2019. The results demonstrate that, first, GF has a positive effect on firms' total factor productivity. Second, heterogeneity analysis reveals that the effects of GF differ across firms. Third, two paths through which GF can affect firms' TFP are identified: financing constraints and R&D investment. Finally, the differences-in-differences method suggests that green finance pilot policies contribute to an increase in firms' TFP in the pilot areas. However, the regression control method reveals regional variations in policy effectiveness and duration. In short, this study expands on the empirical literature that documents the nexus between productivity and financial markets and can provide an important theoretical and empirical basis for expanding the achievements of GF construction in China.
AB - The productivity channel is extensively explored as a key mechanism through which finance influences economic growth. This paper specifically aims to assess the effect of green finance (GF) on firms' total factor productivity (TFP) using matched data on 2246 listed companies and their respective provinces in China from 2011 to 2019. The results demonstrate that, first, GF has a positive effect on firms' total factor productivity. Second, heterogeneity analysis reveals that the effects of GF differ across firms. Third, two paths through which GF can affect firms' TFP are identified: financing constraints and R&D investment. Finally, the differences-in-differences method suggests that green finance pilot policies contribute to an increase in firms' TFP in the pilot areas. However, the regression control method reveals regional variations in policy effectiveness and duration. In short, this study expands on the empirical literature that documents the nexus between productivity and financial markets and can provide an important theoretical and empirical basis for expanding the achievements of GF construction in China.
KW - Causality identification
KW - Green finance
KW - Regression control method
KW - TFP
UR - http://www.scopus.com/inward/record.url?scp=85174440784&partnerID=8YFLogxK
U2 - 10.1016/j.eneco.2023.107105
DO - 10.1016/j.eneco.2023.107105
M3 - Article
AN - SCOPUS:85174440784
SN - 0140-9883
VL - 127
JO - Energy Economics
JF - Energy Economics
M1 - 107105
ER -
