Research on the impact of green finance on green technology innovation

Abstract

The green technology innovation of enterprises cannot succeed without the support of capital. The financing constraints are the bottleneck of green technology innovation activities carried out by enterprises. With this regard, the government has adopted the green finance-related policies, while the financial institutions have supported more efficient green technology innovation of enterprises with the financial instruments such as green credit and green bond. This article with the starting point of green finance, the study object of financial data of A-share listed companies from 2016 to 2021 and the mediator of financing constraints, studies the impact of green finance on green technology innovation through finding the correlation between enterprises’ annual ESG rating and financing constraints. This study revealed the following findings: 1) The impact of green finance on green technology innovation is positive. 2) Financing constraints are the mediator between green finance and green technology innovation. 3) There is negative correlation between enterprises’ ESG management performance and their financing constraints. On account the conclusion of this article, the suggestions are as follows: 1) It is necessary for the government to design the development framework of green economy in a top-down way and to encourage financial institutions and enterprises to work together in terms of green innovation. 2) Financial institutions should actively practice the philosophy of green development and broaden the supporting channels of green finance. 3) Enterprises need to focus on the philosophy of ESG development in order to gain more support of green investment capital.