Studying green financing, factor allocation efficiency, and regional productivity growth in renewable energy industries

This study aims to test the role of green financing in factor allocation efficiency and regional productivity growth in China's renewable energy industries. Chinese provincial data were acquired from 2008 to 2019, and the GMM technique was applied for empirical estimation. The results showed that renewable energy factor allocation efficiency in China enhances the rate of regional productivity growth by approximately 32.7%, with the role of green financing standing at16.5% in China-based renewable energy industry efficiency. At the same time, the factor allocation efficiency in China has adopted green financing measures to go green and support green process innovation in technological innovation in renewable energy contact. The findings suggest that regional productivity growth is essential, as is the capacity to advance multifactor technological productivity, use of green bonds, and disclosure of sustainable energy development. Fundamentally, this study presents policy implications for key stakeholders.