Effect of Green Finance in Enhancing Green Innovation Efficiency in High-Tech Industry: Evidence from China

Abstract

Abstract Green finance (GF) is acknowledged as a critical policy tool in China's sustainable development sector, with the goal of lowering the financial burden associated with ecological transformation for Chinese firms. This paper investigates the impact of GF on the green innovation efficiency (GIE) of the high-tech industry (HTI) under carbon neutrality using a panel dataset covering 30 provinces, autonomous regions, and municipalities in China from 2013 to 2021 and deems that GF substantially enhances the GIE of HTI. The result remains after a series of robustness tests. Furthermore, this paper employs a threshold panel regression model to explore the threshold effect of industrial agglomeration on the relationship between GF and GIE. Furthermore, a threshold panel regression model is used in this study to investigate the threshold impact of industrial agglomeration on a connection between GF and GIE. In order to explore the threshold effect of industrial agglomeration on the link between GF and GIE, the study additionally utilizes a threshold panel regression model. It's interesting to note that the research demonstrates the existence of a threshold impact in each of the three characteristics of agglomeration: specialization, diversity, and competition. By providing enhanced financial support to enterprises, GF effectively reduces the costs associated with green transformation, thereby boosting HTI's GIE. This study not only identifies the external factors that influence GIE but also offers valuable theoretical insights and implications for the implementation of GF. As a result, it contributes to a better understanding of the role of GF in promoting sustainable development within China's high-technology industry.