Green Finance and Technological Innovation in Heavily Polluting Enterprises: Evidence from China

There is an urgent need for countries worldwide to promote the green transformation of their economies and reduce environmental pollution. Based on China's Green Credit Guidelines policy in 2012 and the data of Chinese listed companies from 2007 to 2021, we conducted an empirical test using the difference-in-differences method. The results showed that green finance policies inhibit technological innovation in heavily polluting enterprises, and the stronger the enterprise's operating capacity, the weaker this inhibiting effect. The study also shows that bank loan, loan term, corporate management motivation, and business confidence have intermediation effects. Therefore, countries should improve green financial policies and promote technological innovation in heavily polluting enterprises in order to reduce environmental pollution and promote green growth.