Green finance and investment behavior of renewable energy enterprises: A case study of China

This study examines how the green finance facilitates the investment behavior of renewable energy enterprises. Considering the economic development level and financing constraints faced by the enterprises, a dynamic panel threshold model is applied using China as our experimental setting. The research finds that the development of green finance can improve the investment level of renewable energy enterprises. High-quality economic development can play a similar role as green finance in promoting investment in renewable energy enterprises. However, the promoting effect of green finance will be weakened or even offset by the excessive financing constraints of enterprises. The results advance our understanding of the mechanism of green finance on the investment behavior of renewable energy enterprises, and suggesting that maintaining high-quality economic development and alleviating the financing difficulties of enterprises will be more conducive to play the role of green finance in supporting the investment of renewable energy enterprises.

Automated summary

This study investigates how green finance facilitates the investment behavior of renewable energy enterprises. Using China as a case study and considering the level of economic development and financing constraints faced by these enterprises, a dynamic panel threshold model is applied. The research finds that the development of green finance can improve the investment level of renewable energy enterprises. High-quality economic development has a similar effect to green finance in promoting investment. However, excessive financing constraints can weaken or even offset the promoting effect of green finance. The results enhance our understanding of the mechanism of green finance on the investment behavior of renewable energy enterprises and suggest that maintaining high-quality economic development and alleviating financing difficulties will be more conducive to the role of green finance in supporting their investment.