How do green bonds affect green technology innovation? Firm evidence from China

Tao Lin; Mingyue Du; Siyu Ren; Tao Lin; Mingyue Du; Siyu Ren

doi:10.3934/GF.2022024

Green Finance

2022, Volume 4, Issue 4: 492-511. doi: 10.3934/GF.2022024

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Research article

How do green bonds affect green technology innovation? Firm evidence from China

1.
Finance and Economics College, Jimei University, Xiamen 361021, China
2.
School of Economics, Beijing Technology and Business University, Beijing 100048, China
3.
School of Economics, Nankai University, Tianjin 300071, China
4.
Center for Transnationals' Studies of Nankai University, Tianjin 300071, China

Received: 04 October 2022 Revised: 10 November 2022 Accepted: 28 November 2022 Published: 07 December 2022
JEL Codes: G38, G12

As an emerging financial tool, green bonds can broaden the financing channels of enterprises and stimulate the green innovation of enterprises. Based on the A-share data of Chinese listed companies from 2012 to 2020, this paper analyzes the impact of green bonds on green technology innovation by using a method of Difference in Difference with Propensity Score Matching (PSM-DID). We found that green bonds can significantly improve enterprise green technology innovation. Its positive impact is attributed to increases in media attention and R&D capital investment and a reduction in financing constraints. Green bonds play a greater role in the green innovation of strong financial constraints enterprises, non-SOEs and large-scale enterprises. Our findings have important reference significance for the improvement of the resource allocation role of green bonds and achievement of sustainable growth.
- green bonds,
- green innovation,
- financing constraint,
- technology investment,
- China
Citation: Tao Lin, Mingyue Du, Siyu Ren. How do green bonds affect green technology innovation? Firm evidence from China[J]. Green Finance, 2022, 4(4): 492-511. doi: 10.3934/GF.2022024

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Abstract

As an emerging financial tool, green bonds can broaden the financing channels of enterprises and stimulate the green innovation of enterprises. Based on the A-share data of Chinese listed companies from 2012 to 2020, this paper analyzes the impact of green bonds on green technology innovation by using a method of Difference in Difference with Propensity Score Matching (PSM-DID). We found that green bonds can significantly improve enterprise green technology innovation. Its positive impact is attributed to increases in media attention and R&D capital investment and a reduction in financing constraints. Green bonds play a greater role in the green innovation of strong financial constraints enterprises, non-SOEs and large-scale enterprises. Our findings have important reference significance for the improvement of the resource allocation role of green bonds and achievement of sustainable growth.

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