Does venture-backed innovation support carbon neutrality?

Li，Donghui1; Liu，Yingdong2; Sun，Minxing3; Wang，Xinjie4; Xu，Weike5

2023

10.1108/CFRI-12-2022-0253

China Finance Review International   影响因子和分区

2044-1398

2044-1401

Purpose: This paper aims to answer three questions: (1) Which countries invest more capital in green firms? (2) What kind of industries do venture capitals (VCs) invest in? (3) Do VCs invest more capital in green firms? Design/methodology/approach: First, the authors provide summary statistics of the key variables for green and non-green firms. Then the authors use figures to plot the growth of green firms over time. Next, the authors use descriptive data to study VC-invested firms for the top 10 countries and industries for all firms, green firms and non-green firms. Finally, the authors compare the VC investors' characteristics and investment behavior between green and non-green firms. Findings: This study documents that venture-backed investments in clean technologies have increased dramatically in the number of deals and in the total amount of dollar volume over time. This paper provides evidence that VC firms invest more in green firms in each deal than in non-green firms. The United States and European countries play an important role in funding clean technologies across countries, and this study’s results suggest that VC investors play a considerable role in shaping the development of green finance. Originality/value: This paper makes the first attempt to investigate the role of VCs in clean technologies to support carbon neutrality, providing initial evidence on venture capitalists' investment efforts towards carbon neutrality. The paper also has practical implications for start-up firms that raise capital and venture capitalists who finance green start-ups.

Carbon neutrality Clean technology Venture capital

ESCI

英语

其他

National Natural Science Foundation of China[72171107] ; Southern University of Science and Technology[Y01246110]

Business & Economics

Business, Finance

WOS:000946806300001

EMERALD GROUP PUBLISHING LTD

2-s2.0-85150600430

Scopus

1.College of Economics,Shenzhen University,Shenzhen,China
2.China Center for Special Economic Zone Research,College of Economics,Shenzhen University,Shenzhen,China
3.Department of Economics and Finance,University of North Georgia,Gainesville,Gainesville Campus,United States
4.Department of Finance,Southern University of Science and Technology,Shenzhen,China
5.Clemson University,Clemson,United States

Li，Donghui,Liu，Yingdong,Sun，Minxing,et al. Does venture-backed innovation support carbon neutrality?[J]. China Finance Review International,2023,14(1):191-200.

Li，Donghui,Liu，Yingdong,Sun，Minxing,Wang，Xinjie,&Xu，Weike.(2023).Does venture-backed innovation support carbon neutrality?.China Finance Review International,14(1),191-200.

Li，Donghui,et al."Does venture-backed innovation support carbon neutrality?".China Finance Review International 14.1(2023):191-200.