Abstract
In order to develop green finance and realize the coordinated development of the environment and economy, China established green finance reform and innovation pilot zones in 2017. Green innovation has problems such as low financing utilization rate and lack of market competitiveness. The green finance pilot policies (GFPP) based on government management provide solutions to these problems. It is of great significance to measure and provide feedback on the implementation effect of GFPP in China for policy-making and green development. This article focuses on the influence of the construction of GFPP by using the five pilot zones as the study area and constructs the green innovation level indicator. Based on the synthetic control method, it chooses provinces that do not carry out the pilot policy as a control group. After that, assign weights to the control region to fit a synthetic control group with resembling characteristics to simulate the five pilot provinces without implementing the policy. Then, compare it with its current policy effect and highlight the policy implementation effect on green innovation. The placebo test and robustness test were conducted to prove the reliability of the conclusions. The results show that since the implementation of GFPP, the level of green innovation in the five pilot cities has shown an overall rising trend. Furthermore, we found that the balance of credit and investment in science and technology has a negative moderating effect on the implementation of GFPP, while the per capita GDP has a significant positive moderating effect.
Graphical Abstract
Similar content being viewed by others
Data availability
Data can be available from the authors on request.
Change history
04 March 2023
2nd author family name correction in the reference Skordoulis et al. 2022.
References
Abadie A, Diamond A, Hainmueller J (2010) Synthetic control methods for comparative case studies: estimating the effect of California’s tobacco control program. J Am Stat Assoc 105(490):493–505. https://doi.org/10.1198/jasa.2009.ap08746
Abadie A, Diamond A, Hainmueller J (2015) Comparative politics and the synthetic control method. Am J Political Sci 59(2):495–510. https://doi.org/10.1111/ajps.12116
Arici HE, Uysal M (2022) Leadership, green innovation, and green creativity: a systematic review. Serv Ind J 42(5–6):280–320. https://doi.org/10.1080/02642069.2021.1964482
Chang K, Zeng YH, Wang WH et al (2019) The effects of credit policy and financial constraints on tangible and research & development investment: firm-level evidence from China’s renewable energy industry. Energy Policy 130:438–447. https://doi.org/10.1016/j.enpol.2019.04.005
Chen X, Shao S, Tian Z et al (2017) Impacts of air pollution and its spatial spillover effect on public health based on China’s big data sample. J Clean Prod 142:915–925. https://doi.org/10.1016/j.jclepro.2016.02.119
Chen Y-S (2008) The driver of green innovation and green image – green core competence. J Bus Ethics 81(3):531–543. https://doi.org/10.1007/s10551-007-9522-1
Cruz-Cazares C, Bayona-Saez C, Garcia-Marco T (2013) You can’t manage right what you can’t measure well: technological innovation efficiency. Res Policy 42(6–7):1239–1250. https://doi.org/10.1016/j.respol.2013.03.012
Del Brío JÁ, Junquera B (2003) A review of the literature on environmental innovation management in SMEs: implications for public policies. Technovation 23(12):939–948. https://doi.org/10.1016/S0166-4972(02)00036-6
Fan H, Peng Y, Wang H, et al (2021) Greening through finance? J Dev Econ 152. https://doi.org/10.1016/j.jdeveco.2021.102683
Fan JD, Teo T (2022) Will China’s R&D investment improve green innovation performance? An empirical study. Environ Sci Pollut Res 29(26):39331–39344. https://doi.org/10.1007/s11356-021-18464-5
Fang Y, Shao Z (2022) Whether green finance can effectively moderate the green technology innovation effect of heterogeneous environmental regulation. International J Environ Res Public Health 19(6). https://doi.org/10.3390/ijerph19063646
Feng ZJ, Chen W (2018) Environmental regulation, green innovation, and industrial green development: an empirical analysis based on the spatial durbin model. Sustainability 10(1). https://doi.org/10.3390/su10010223
Flammer C (2021) Corporate green bonds. J Financ Econ 142(2):499–516. https://doi.org/10.1016/j.jfineco.2021.01.010
García-Quevedo J, Segarra-Blasco A, Teruel M (2018) Financial constraints and the failure of innovation projects. Technol Forecast Soc Chang 127:127–140. https://doi.org/10.1016/j.techfore.2017.05.029
Gorodnichenko Y, Schnitzer M (2013) Financial constraints and innovation: why poor countries don’t catch up. J Eur Econ Assoc 11(5):1115–1152. https://doi.org/10.1111/jeea.12033
Guan J, Chen K (2010) Measuring the innovation production process: a cross-region empirical study of China’s high-tech innovations. Technovation 30(5–6):348–358. https://doi.org/10.1016/j.technovation.2010.02.001
Guerlek M, Tuna M (2018) Reinforcing competitive advantage through green organizational culture and green innovation. Serv Ind J 38(7–8):467–491. https://doi.org/10.1080/02642069.2017.1402889
Hou H, Zhu Y, Wang J, et al (2022) Will green financial policy help improve China’s environmental quality? The role of digital finance and green technology innovation. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-022-22887-z
Huang X, Liu W, Zhang Z et al (2023) Quantity or quality: environmental legislation and corporate green innovations. Ecol Econ 204:107684. https://doi.org/10.1016/j.ecolecon.2022.107684
Huang HY, Mbanyele W, Wang FR, et al (2022) Climbing the quality ladder of green innovation: does green finance matter? Technol Forecast Soc Change 184. https://doi.org/10.1016/j.techfore.2022.122007
Huang H, Zhang J (2021) Research on the environmental effect of green finance policy based on the analysis of pilot zones for green finance reform and innovations. Sustainability 13(7). https://doi.org/10.3390/su13073754
Jiang J, Tang Y, Li X (2022) Digital finance enables green innovation in new energy enterprises under the background of “carbon emission peak” and “carbon neutality”: from the perspective of financing constraint. Contemp Econ Manag 44(05):81–9. https://doi.org/10.13253/j.cnki.ddjjgl.2022.05.011
KarimiTakalo S, SayyadiTooranloo H, ShahabaldiniParizi Z (2021) Green innovation: a systematic literature review. J Clean Prod 279:122474. https://doi.org/10.1016/j.jclepro.2020.122474
Li W, Cui G, Zheng M (2022) Does green credit policy affect corporate debt financing? Evidence from China. Environ Sci Pollut Res 29(4):5162–5171. https://doi.org/10.1007/s11356-021-16051-2
Li W, Gu Y, Liu F et al (2019) The effect of command-and-control regulation on environmental technological innovation in China: a spatial econometric approach. Environ Sci Pollut Res 26(34):34789–34800. https://doi.org/10.1007/s11356-018-3678-3
Lin B, Ma R (202) How does digital finance influence green technology innovation in China? Evidence from the financing constraints perspective. J Environ Manag 320. https://doi.org/10.1016/j.jenvman.2022.115833
Lioui A, Sharma Z (2012) Environmental corporate social responsibility and financial performance: disentangling direct and indirect effects. Ecol Econ 78:100–111. https://doi.org/10.1016/j.ecolecon.2012.04.004
Liu J-Y, Xia Y, Fan Y et al (2017) Assessment of a green credit policy aimed at energy-intensive industries in China based on a financial CGE model. J Clean Prod 163:293–302. https://doi.org/10.1016/j.jclepro.2015.10.111
Lu H, Wang S (2022) Can China’s national five-year plan for environmental protection induce corporate green innovations? Environ Sci Pollut Res 29(23):34437–34451. https://doi.org/10.1007/s11356-022-18662-9
Meo MS, AbdKarlm MZ (2022) The role of green finance in reducing CO2 emissions: an empirical analysis. Borsa Istanbul Rev 22(1):169–178. https://doi.org/10.1016/j.bir.2021.03.002
Peng H, Shen N, Ying HQ, et al (2021) Can environmental regulation directly promote green innovation behavior?-- based on situation of industrial agglomeration. J Clean Prod 314. https://doi.org/10.1016/j.jclepro.2021.128044
Qi GY, Shen LY, Zeng SX et al (2010) The drivers for contractors’ green innovation: an industry perspective. J Clean Prod 18(14):1358–1365. https://doi.org/10.1016/j.jclepro.2010.04.017
Qi S, Lin S, Cui J (2018) Do environmental rights trading schemes induce green innovation? Evidence from listed firms in China. Econ Res J 53(12):129–143 (CNKI:SUN:JJYJ.0.2018-12-010)
Qin J, Cao J (2022) Carbon emission reduction effects of green credit policies: empirical evidence from China. Front Environ Sci 10. https://doi.org/10.3389/fenvs.2022.798072
Roh T, Lee K, Yang JY (2021) How do intellectual property rights and government support drive a firm’s green innovation? The mediating role of open innovation. J Clean Prod 317. https://doi.org/10.1016/j.jclepro.2021.128422
Skordoulis M, Kyriakopoulos G, Ntanos S, et al (2022) The mediating role of firm strategy in the relationship between green entrepreneurship, green innovation, and competitive advantage: the case of medium and large-sized firms in Greece [J/OL] 14(6). https://doi.org/10.3390/su14063286
Song WH, Yu HY (2018) Green innovation strategy and green innovation: the roles of green creativity and green organizational identity. Corp Soc Responsib Environ Manag 25(2):135–150. https://doi.org/10.1002/csr.1445
Su C-W, Umar M, Gao R (2022) Save the environment, get financing! How China is protecting the environment with green credit policies? J Environ Manag 323. https://doi.org/10.1016/j.jenvman.2022.116178
Sun X, Zhang A, Zhu M (2023) Impact of pilot zones for green finance reform and innovations on green technology innovations: evidence from chinese manufacturing corporates. Environ Sci Pollut Res Int. https://doi.org/10.1007/s11356-023-25371-4
Sun Y, Guan W, Razzaq A et al (2022) Transition towards ecological sustainability through fiscal decentralization, renewable energy and green investment in OECD countries. Renewable Energy 190:385–395. https://doi.org/10.1016/j.renene.2022.03.099
Sun ZY, Zhang WW (2019) Do government regulations prevent greenwashing? An evolutionary game analysis of heterogeneous enterprises. J Clean Prod 231:1489–1502. https://doi.org/10.1016/j.jclepro.2019.05.335
Tingbani I, Salia S, Hussain J G, et al (2021) Environmental tax, sme financing constraint, and innovation: evidence from oecd countries. IEEE Trans Eng Manag. https://doi.org/10.1109/TEM.2021.3110812
Tseng M-L, Wang R, Chiu ASF et al (2013) Improving performance of green innovation practices under uncertainty. J Clean Prod 40:71–82. https://doi.org/10.1016/j.jclepro.2011.10.009
Tu Q, Betz R, Mo JL et al (2019) Achieving grid parity of wind power in China - present levelized cost of electricity and future evolution. Appl Energy 250:1053–1064. https://doi.org/10.1016/j.apenergy.2019.05.039
Van Leeuwen G, Mohnen P (2017) Revisiting the Porter hypothesis: an empirical analysis of Green innovation for the Netherlands. Econ Innov New Technol 26(1–2):63–77. https://doi.org/10.1080/10438599.2016.1202521
Wang C, Chen P, Hao Y, et al (2022) Tax incentives and green innovation-the mediating role of financing constraints and the moderating role of subsidies. Front Environ Sci 10. https://doi.org/10.3389/fenvs.2022.1067534
Wang M, Li X, Wang S (2021) Discovering research trends and opportunities of green finance and energy policy: a data-driven scientometric analysis. Energy Policy 154. https://doi.org/10.1016/j.enpol.2021.112295
Xiang X, Liu C, Yang M (2022) Who is financing corporate green innovation? Int Rev Econ Financ 78:321–337. https://doi.org/10.1016/j.iref.2021.12.011
Xu XH (2022) Does green finance promote green innovation? Evidence from China. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-022-24106-1
Yang YX, Su X, Yao SL (2022) Can green finance promote green innovation? The moderating effect of environmental regulation. Environ Sci Pollut Res 29(49):74540–74553. https://doi.org/10.1007/s11356-022-21118-9
Yu C-H, Wu X, Zhang D, et al (2021) Demand for green finance: resolving financing constraints on green innovation in China. Energy Policy 153. https://doi.org/10.1016/j.enpol.2021.112255
Yu X, Shen M, Wang D, et al (2019) Does the low-carbon pilot initiative reduce carbon emissions? Evidence from the application of the synthetic control method in Guangdong province. Sustainability 11(14). https://doi.org/10.3390/su11143979
Zhang C, Cheng X, Ma Y (2022a) Research on the impact of green finance policy on regional green innovation-based on evidence from the pilot zones for green finance reform and innovation. Front Environ Sci 10. https://doi.org/10.3389/fenvs.2022.896661
Zhang HF, Wang YX, Li R et al (2022b) Can green finance promote urban green development? Evidence from green finance reform and innovation pilot zone in china. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-022-22886-0
Zhou X, Du J (2021) Does environmental regulation induce improved financial development for green technological innovation in China? J Environ Manag 300. https://doi.org/10.1016/j.jenvman.2021.113685
Author information
Authors and Affiliations
Contributions
Conceptualization, D.T. and B.F.; data curation, D.T. and B.F.; formal analysis, D.T. and B.F.; investigation, D.T. and V.B.; methodology, B.F.; project administration, D.T.; resources, D.T. and B.F.; supervision, D.T.; validation, D.T. and V.B.; visualization, D.T. and V.B.; writing—original draft, D.T. and B.F.; writing—review and editing, D.T. and V.B. All the authors have read and agreed to the published version of the manuscript.
Corresponding author
Ethics declarations
Ethical approval
This manuscript does not report on or involve the use of any animal or human data or issue.
Consent to participate
All the authors agree to participate.
Consent for publication
We consent to publish this manuscript in Environmental Science and Pollution Research. This manuscript has not been published in whole or in part nor is it being considered for publication elsewhere.
Competing interests
The authors declare no competing interests.
Additional information
Responsible Editor: Nicholas Apergis
Publisher's note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Tang, D., Fu, B. & Boamah, V. Implementation effect of China’s green finance pilot policy based on synthetic control method: a green innovation perspective. Environ Sci Pollut Res 30, 51711–51725 (2023). https://doi.org/10.1007/s11356-023-25977-8
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11356-023-25977-8