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

Authors: Li Han; Congcong Duan; Zhenfei Yao

Addresses: School of Management, Qufu Normal University, Rizhao 276800, Shandong, China ' College of Environment and Resources, Northwest A and F University, Xianyang 712199, Shaanxi, China ' School of Management, Qufu Normal University, Rizhao 276800, Shandong, China

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.

Keywords: GF; CN; carbon-emission; green-development.

DOI: 10.1504/IJSD.2025.143116

International Journal of Sustainable Development, 2025 Vol.28 No.1, pp.106 - 123

Received: 27 Nov 2023
Accepted: 17 Jan 2024
Published online: 03 Dec 2024 *

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