EXCHANGE Volume 01, No. 1, 2023, pp. 109-112

Jun YANG

Green Finance for Green Innovation

Abstract: Green finance plays an essential role in the progress of the world’s green economy as a financial instrument that can achieve harmonious economic and environmental development. By summarizing the existing literature on green finance and green innovation, this paper explores the impact of green finance development on enterprise innovation and its influencing mechanism from the micro-enterprise level. It explores the internal mechanism of the effect of green finance development and enterprise innovation from the perspective of the impact of enterprise innovation on economic effect and environmental effects. Provide a policy basis for the development of green finance. The study finds that the development of green finance combined with government subsidies can significantly improve the R&D and innovation of enterprises, thus improving the competitiveness of enterprises. In addition, green innovation can improve resource utilization efficiency, reduce enterprises’ energy consumption, reduce energy costs, and significantly reduce environmental pollution.

Keywords: Green Finance; green patent; corporate innovation; business.