Digital innovations and green finance: accelerating carbon neutrality in enterprise sustainability

Abstract

Green finance (GF) is a pivotal driver for enhancing carbon-neutrality, ultimately fostering the sustainable development of enterprises. Drawing upon provincial panel data spanning 2007 to 2017, this study examines the impact of GF on carbon-neutrality and its mechanisms. The empirical findings highlight GF’s significant positive influence on achieving carbon-neutral goals, a relationship that withstands varying research methodologies. This analysis uncovers disparities in GF’s effectiveness in attaining these objectives, as well as spatial spillover effects. Notably, GF’s promotion of carbon-neutral goals follows a nonlinear pattern, emphasising the complexity of the relationship. Additionally, green innovation emerges as a mediating force within the GF-driven process of carbon neutralisation (CN). These conclusions hold important policy implications for expediting CN realisation and improving global climate conditions, ultimately contributing to the sustainable development of enterprises.