This study empirically analyzes the diverse effects of green finance on heterogeneous green innovation in China from 2010 to 2019 using regional data and econometric models (negative binomial, threshold, and spatial error models). Green finance positively impacts regional green innovation, particularly in fossil energy carbon reduction, energy conservation and recovery, and clean energy technology innovation. The effect is moderated by environmental supervision intensity, exhibiting a threshold effect. A negative spatial spillover effect is also observed, indicating that green innovation in one region might hinder development in neighboring areas. The findings highlight the need for region-specific green finance policies that consider environmental regulations and spatial spillovers.

Lei Li, Xiaoyu Ma, Shaojun Ma, Feng Gao