Green finance, environment regulation, and industrial green transformation for corporate social responsibility

Abstract In order to meet the strategic goals of carbon peak and carbon neutralization on schedule, it is crucial to examine the effects and limitations of green finance on the green transformation of industry. This research utilizes the entropy method, the Global Malmquist–Luenberger technique, and panel data of 30 provinces in China from 2005 to 2018 to estimate the extent of industrial green transformation and green finance development in each province. It builds static and dynamic panel models to experimentally examine the effect of green finance on industrial green transformation. After introducing environmental regulation (ER), this paper presents how ER influences the link between green finance and industrial green transformation. The research finds the following. (1) According to geographical differences in the growth of green finance and industrial green transformation, the economically developed east region is more advanced than the central and west regions, and the central region is more advanced than the west region. (2) Green finance has a significantly positive impact on industrial green transformation, and this positive influence has certain continuity and inertia. (3) Environmental regulation has a favorable impact on the link between green finance and industrial green transformation; specifically, a rise in the level of environmental regulation stimulates the process of green finance that boosts industrial green transformation. The policy recommendations herein offer reference for the construction of China's green financial system and the promotion of industrial green transformation for CSR.