Green finance and grey air: evaluating the impact of green finance pilot zones on company-level pollution in China

To achieve sustainable and high-quality economic growth, China introduced the Pilot Zones for Green Finance Reform and Innovations in 2017. While this policy aims to promote the green transition of businesses and has drawn significant attention, its micro-operational mechanism and firm-level impact remain largely unexplored. This study addresses this research gap by employing a quasi-experimental approach to examine the policy’s effects on companies. The empirical results of our research highlight an unexpected 5.53% surge in the PM2.5 concentration levels in the vicinity of these firms. Given these findings, we call on policymakers to reflect on the environmental consequences following the roll-out of the Green Finance Reform. Simultaneously, we stress the significance of corporate responsibility in disclosing pertinent indicators and environmental data.