Effect of green finance on green asset securitization and economic structure transformation under carbon neutralization role

Abstract

Under the carbon neutrality goal, this study examines whether green finance (GF) promotes the green transformation (GTrans) of industrial structure through Green Asset Securitization (GAS) and technological innovation, and whether the Business Environment (BUS) serves as a moderating factor in this process. Using panel data from 31 Chinese provinces spanning 2003 to 2023, composite indices for GF, GAS, and industrial green transformation (IGT) were constructed via the entropy method. A series of econometric approaches, including fixed-effects models, mediation analysis, and moderation models, were applied in the empirical investigation. The results show that: (1) GF is significantly and positively related to IGT. (2) Both GAS and technological innovation partially mediate this relationship, with the Sobel test confirming the statistical significance of these indirect channels. (3) The BUS positively moderates the impact of GF on industrial transformation. (4) Robustness tests, including measures of alternative variables, sample period adjustment, time lag setting, instrumental variable estimation, and Driscoll–Kraay standard errors, further reinforced the validity of the research findings. (5) Regional heterogeneity analysis reveals that the effect is more pronounced in eastern China than in central and western regions. Overall, the study identifies key mediating mechanisms through which GF operates and highlights the synergistic roles of technological innovation and the BUS in facilitating industrial transformation. The findings offer empirical insights into the transmission mechanisms of GF.