The policy effect of green finance reform and innovations: Empirical evidence at the firm level

Dong, Hanghang and Tao, Miaomiao (2022) The policy effect of green finance reform and innovations: Empirical evidence at the firm level. PLoS ONE, 17 (12). ISSN 1932-6203, DOI

Full text not available from this repository.


The Chinese central government established eight pilot zones in five provinces for green finance reform and innovations (GFRI) in 2017. The pilot zones promote green finance development and explore the propagable and reproducible experiences regarding mechanisms and institutions. Adopting a sample of China's listed companies from 2012 to 2021, this paper constructed a quasi-natural experiment and investigated the GFRI policy's effect on firms' total factor productivity (TFP) using the difference-in-differences (DID) method to verify the implementation effect of the GFRI policy. Furthermore, heterogeneity analysis and mechanism analysis were conducted to identify the guidance effect and deep mechanisms of the GFRI policy. The empirical results demonstrated that firms' TFP in pilot zones increased substantially after implementing the GFRI pilot policy, confirming that the policy had a strong incentive effect. The corresponding promoting effect was particularly significant for non-state-owned companies, the eastern and central regions, and firms in the growth stage. Further mechanism analysis revealed that the GFRI pilot policy can stimulated firms' TFP by promoting technological innovation and improving resource allocation efficiency. This paper's empirical findings are essential in improving relevant policies and expanding the pilot zones.

Item Type: Article
Funders: None
Uncontrolled Keywords: Research-and-development; Environmental-regulation; Productivity evidence; Investment; Protection; Growth; Regulations; Transition; Efficiency; Mechanism
Subjects: H Social Sciences > HF Commerce > Business
H Social Sciences > HG Finance
Divisions: Faculty of Business and Economics > Department of Economics and Applied Statistics
Depositing User: Ms. Juhaida Abd Rahim
Date Deposited: 20 Nov 2023 09:07
Last Modified: 20 Nov 2023 09:07

Actions (login required)

View Item View Item