Green Bonds: Fueling Green Innovation or Just a Fad?

• DOI: 10.2139/ssrn.4635211
• Publication Date: 2023-11-16T16:17:45Z
• Authors: Hanmin Dong; Lin Zhang; Huanhuan Zheng
• Keywords: Green innovation

This study investigates the impact of green bond issuance on innovation and its underlying mechanisms. We find that promotes innovation, with stronger effects observed in regions weaker climate regulation, industries exhibiting better environmental performance, firms more concentrated ownership. Further analysis reveals corporate bonds facilitate reallocation investment capital into research development, effectively mitigating financial constraints innovation. upsurge not only enhances performance but also yields specific benefits, such as improved ESG performance. These empirical results underscore significance finance fostering sustainable advancing governance, rather than merely engaging washing practices.