Has Technological Finance Improved Environmental Pollution Control Levels in Heavily Polluting Industries?

Abstract

Developing new productivity adapted to local conditions and actively promoting the green transformation of industries is the key to improving environmental pollution control levels. Based on data from 697 listed companies in heavily polluting industries nationwide from 2012 to 2022, this paper empirically examines the impact mechanisms, paths, and heterogeneity of technological finance, technological innovation, and financing constraints on environmental pollution control levels. The study shows that technological finance significantly improves the environmental pollution control levels of heavily polluting enterprises. However, there is some greenwashing behavior in the utilization of technological finance funds. Technological innovation and financing constraints play a partial mediating role in the process of improving environmental pollution control levels through technological finance. Compared with non-state-owned enterprises, state-owned enterprises are more sensitive to the enhancement of environmental pollution control through technological finance. To improve the environmental pollution control levels of heavily polluting enterprises, those located in strictly regulated “dual control areas” are less influenced by technological finance compared to those outside these areas. This paper also attempts to explore the factors affecting the sustainable green development of heavily polluting industries and provides policy recommendations for improving the environmental pollution control levels of heavily polluting enterprises.