Green Finance Empowers the Organic Integration of Industries Research on Tool Innovation, Sustainable Development Effects, and Mechanisms of Action

DOI: https://doi.org/10.62517/jel.202514513

Author(s)

Xiaohui Lu1, Fulei He2, Xun Xu3, Kunlin Li4, Ziyi Li5, Rong Ye6,*

Affiliation(s)

1Kunming Foreign Language School, Kunming, Yunnan, China 2Yunnan Vocational College of Finance and Economics, Kunming, Yunnan, China 3School of Management and Economics, ChuXiong Normal University, Chuxiong, Yunnan, China 4Development Research Center of the People's Government of Mengzi City, Honghe Hani and Yi Autonomous Prefecture, Yunnan Province, Honghe, Yunnan, China 5The Science and Technology Achievement Transformation Center of the Agriculture, Rural Affairs, and Science and Technology Bureau of Shiping County, Honghe, Yunnan, China 6Postdoctoral Research Station, Fudian Bank Financial Research Institute, Kunming, Yunnan, China *Corresponding Author

Abstract

Achieving "carbon peaking" before 2030 and "carbon neutrality" before 2060 is a solemn commitment made by our country to the international community. Vigorously developing green finance to promote the green and low-carbon transformation of our economy is an inevitable requirement for realizing the structural reform of the financial supply side and promoting high-quality development. Under the background of the "dual carbon" strategy, green finance is regarded as a key institutional arrangement driving the green transformation of industries. This paper, by integrating interdisciplinary perspectives from environmental economics, corporate finance, and institutional economics, constructs a three-dimensional analysis of "financial instruments-industry characteristics-institutional environment," systematically exploring the mechanism and sustainable development effects of green financial instrument innovation on industrial green transformation. Based on a comparative analysis of green credit, green bonds, green insurance, and derivative instruments, it is found that green finance effectively guides capital flow from high-carbon assets to green industries through mechanisms such as differentiated financing costs, risk mitigation, and performance incentives, significantly enhancing corporate environmental performance and total factor productivity. Furthermore, it reveals that green finance promotes industrial structure optimization and systemic carbon emission reduction at the macro level by optimizing resource allocation, reducing financing costs, and strengthening environmental constraints. At the micro level, it reshapes the investment decision boundaries of enterprises, fostering the research, development, and diffusion of green technologies. The research findings provide a theoretical basis for the government to formulate precise green finance methods, offer practical guidance for enterprises to implement green transformation strategies, and supply interdisciplinary theoretical support for building a green finance system that balances efficiency and inclusivity.

Keywords

Green Finance; Organic Integration of Industries; Industrial Transformation; Tool Innovation; Sustainable Development Effect

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