Green finance: do innovation, fintech and financial transparency play a role?

Abstract

Understanding the drivers of green growth is important for designing policies to support sustainability goals. This article reports the findings of a cross-country empirical analysis of the role of innovation, fintech and financial transparency in promoting green finance using regression analysis based on a general-to-specific approach. Results show that green finance is significantly and negatively associated with fintech and financial transparency and positively associated with innovation. These results suggest that fintech may be diverting resources away from green finance, whereas greenwashing may undermine the effectiveness of green finance strategies.