Evolution of Green Finance: Mapping Its Role as a Catalyst for Economic Growth and Innovation

Abstract

This scientometric study analyzes the evolving landscape and outlook of green finance as a driver of economic innovation and growth, highlighting key trends and influential research within this critical field. A dataset of 371 publications was compiled from the Scopus and Web of Science databases and analyzed using VOSviewer, Bibliometrix, and Voyant tools to map the research landscape. By systematically reviewing the scientific literature, this research tracks the development of green finance’s role as a catalyst for economic innovation and growth, identifying trending topics, key studies, and major contributors through bibliometric and scientometric methods. The analysis reveals a growing interdisciplinary approach, integrating environmental, social, and political dimensions into green finance research. Keyword analysis identified three primary thematic clusters: (1) green finance and innovation, (2) economic growth, carbon neutrality, and fintech, and (3) renewable energy and urbanization. This study provides a comprehensive overview of the field and aims to guide future research while contributing to ongoing debates on the role of green finance in fostering economic innovation and sustainable growth.

1. Introduction

The global emphasis on sustainable development and environmental protection has positioned green finance as a critical tool for achieving a balance between economic growth and environmental management (Peng 2024; Ullah et al. 2024). Green finance encompasses a broad array of financial activities that support investments with environmental benefits, particularly in mitigating climate change and promoting renewable energy (Bilal and Shaheen 2024; Kashif et al. 2023; Luo et al. 2024; Marín-Rodríguez et al. 2023a; Mitchell et al. 2024; Shi and Yu 2024). The rise of green finance has been fueled by a growing awareness of the environmental costs of traditional economic models and the need to shift toward more sustainable economic systems (Kharb et al. 2024; Wang et al. 2024; Xu and Liu 2023; Zhang et al. 2024c).

Recent studies have highlighted the diverse mechanisms through which green finance contributes to economic growth, environmental sustainability, and technological innovation. For instance, Kashif et al. (2023) and Zhong et al. (2024) explore how green credit tools enhance financial access for eco-friendly projects, while Li and Gong (2023), Su and Chen (2024), and Xu and Liu (2023) delve into the role of carbon finance in advancing clean technology innovation. The financial digitization wave has also catalyzed new tools and platforms that boost green finance, supporting green economic transitions (Hossain et al. 2024; Mehroush et al. 2024; Ribeiro 2024; Xu et al. 2024). These financial innovations are critical as countries seek to meet ambitious environmental goals under international agreements like the Paris Climate Agreement.

Research focusing on China has been instrumental in understanding green finance’s impact on environmental and economic outcomes. Xu et al. (2023) examine how green finance is controlling industrial pollution, using fixed-effects models to assess the links between green technology innovation and industrial restructuring. Similarly, Dong and Yu (2023) explore the synergy between green finance and blockchain technology in mitigating climate change, underscoring the growing intersection of financial innovation and environmental action. In this context, green finance’s role extends beyond environmental protection; it is also a driver of industrial upgrading and technological advancement (He and Jiang 2024; Wei et al. 2023).

As emerging economies seek to harmonize economic growth with sustainable development, green finance has played a prominent role. For example, Sampene et al. (2024) assess the impact of green finance on renewable energy transitions in E7 nations, highlighting how urbanization and technological innovation influence green investments. Udeagha and Ngepah (2023) add to this discourse by analyzing how green finance and fintech impact carbon neutrality efforts in BRICS nations. These studies collectively underscore the importance of green finance in promoting high-quality economic development, particularly in countries where industrialization and urbanization pose significant environmental challenges (Sohail et al. 2024; Xu and Ding 2024).

The literature on green finance has expanded considerably, reflecting a global shift toward sustainable economic practices and the urgent need to address environmental challenges through financial innovation. However, while the literature on green finance has grown substantially, it remains fragmented across various geographies, sectors, and methodologies. Numerous reviews have explored green finance from different angles, such as its integration within sustainable development (Ribeiro 2024), its role in reducing climate risks (Muhmad et al. 2024; Poyser 2023; Sharma et al. 2023; Utomo et al. 2023), and its application in promoting green innovations within financial systems (Ahmed et al. 2024; Dhayal et al. 2023; Fahim and Mahadi 2022). However, these studies often address green finance within limited or specific contexts without providing a cohesive overview of its broader economic implications.

The existing literature reveals several common themes, primarily focused on green finance’s contributions to environmental sustainability, risk management, and policy development. For instance, some reviews emphasize green finance’s alignment with international environmental goals and regulations, including the United Nations sustainable development goals (SDGs) (Ahmed et al. 2024; Fanea-Ivanovici and Siemionek-Ruskań 2023; Kwong et al. 2023) and climate change mitigation targets (Bhatnagar and Sharma 2022; Ozili 2022; Xue et al. 2023). Others analyze the role of green finance in addressing the challenges and opportunities associated with sustainable investment practices, examining its impact on sectors like renewable energy and clean technology (Krastev and Krasteva-Hristova 2024; Muchiri et al. 2022; Razi et al. 2024; Zhang et al. 2022b). Furthermore, some studies explore green finance’s role in regional economic transitions, particularly within emerging economies, which often face unique regulatory and financial barriers to implementing sustainable finance practices (Krastev and Krasteva-Hristova 2024; La Torre et al. 2024; Sharma et al. 2023).

Despite these valuable insights, most reviews lack a unifying framework that considers green finance’s broader economic impact, specifically its role as a catalyst for economic growth and innovation. This gap is significant, as green finance has the potential not only to support environmental objectives but also to drive economic transformation by promoting sustainable investments and fostering new markets and technologies. The fragmented nature of current research limits our understanding of how green finance can be strategically leveraged to maximize both environmental and economic benefits, especially when considering cross-sectoral and cross-regional applications.

With this study, we aim to fill this gap by conducting a comprehensive scientometric analysis. This analysis systematically maps the development of green finance research within the context of economic growth and innovation, identifying key themes, influential contributors, and emerging trends. Building on recent studies that analyze green finance through bibliometric and bibliographic approaches (Bhatnagar and Sharma 2022; Cai and Guo 2021; Kumar et al. 2023; Muhmad et al. 2024), we provide a structured synthesis that consolidates fragmented insights into a unified framework. By examining the intersection of green finance with economic growth, this review highlights how green finance can catalyze economic transformation and support sustainable innovation. This approach is particularly timely, given the increasing emphasis on green finance to solve today’s pressing environmental and economic challenges (Ma 2024).

In defining the scope of our analysis, we specifically chose the keywords green finance, economic growth, and innovation. Unlike other reviews that include a wider range of terms, our study deliberately focuses on these keywords to align with the primary objective of establishing a cohesive framework for understanding green finance as a driver of economic development and innovative progress. Expanding the keywords to include terms such as sustainable finance, carbon finance, or climate finance could broaden the scope beyond the focus of this study, as these keywords often emphasize different or overlapping aspects of environmental finance. By maintaining a concentrated set of keywords, this review aims to deliver a more targeted synthesis that underscores green finance’s role in fostering sustainable economic resilience and transformative growth across regions and sectors. This focused approach allows for a more precise exploration of how green finance can maximize both economic and environmental benefits, contributing a nuanced understanding of its unique potential as a growth-oriented financial tool.

This manuscript is organized as follows: Section 2 delineates the methodology employed in this study, Section 3 provides an overview of the primary results and their analysis, Section 4 discusses the key themes and insights derived from the findings, and Section 5 offers a summary of the principal conclusions within the framework of green finance as a catalyst for economic growth and innovation.

2. Review of Prior Research on Green Finance Foundation

Given the extensive reviews conducted on green finance, this study will focus on those that contribute to the common elements essential for analyzing the dynamics of green finance as a catalyst for economic innovation and growth. The selected studies highlight key themes and findings that align with our research objectives, emphasizing the critical role of green finance in promoting economic growth and fostering innovation. These contributions will be succinctly summarized in

Table 1. Summary of literature reviews on green finance and its impact on economic growth and innovation. Source: authors’ own research using Scopus and WoS databases.

Study	Key Variables	Purpose	Main Findings
Debrah et al. (2022)	Green finance, green buildings, investment gap, Asia, future research directions.	Provide an overview and map of green finance in the buildings research field.	Green finance in green buildings is under-researched, with Asia leading contributions; future directions include AI and intelligent assessment.
Maria et al. (2023)	Green transition, carbon lock-in, green finance investment, financial risks, green bonds.	Identify groups in green finance literature and explore heterogeneity using computational methods.	Three main groups identified: climate finance distribution, financial risks, and energy-emissions-economics models.
Mohanty et al. (2023)	Green finance, financial performance, bibliometric analysis, co-authorship, keyword co-occurrence.	Assess the current state and progress of academic research on green finance using a bibliometric approach.	Green finance research focuses on climate finance, green bonds, financial performance, and emerging trends in keyword co-occurrence.
Ribeiro (2024)	Nation brands, brand culture, environmental branding, fintech development, green innovation.	Explore nation brands and green branding as emerging areas in green finance.	Nation brands and green branding emerge as key areas in green finance, highlighting fintech’s role in fostering green innovation and energy efficiency.
Tao and Chao (2023)	Green finance, economic growth, renewable energy, CO2 emissions, consumption.	Analyze global research progress on green finance and energy from 2000 to 2022 using bibliometric methods.	China leads publications in the field; main themes include CO2 emissions, economic growth, and renewable energy.

offering a clear overview of the relevant literature that informs our analysis.

In the context of analyzing green finance as a catalyst for economic growth and innovation, the studies in Table 1 provide valuable insights into the evolution of green finance and its potential as a driver of economic transformation. Each study highlights different aspects of green finance, employing scientometric tools such as bibliometric analysis to trace trends and identify gaps in the literature. These analyses are crucial for understanding how green finance has developed and where future research and policy should focus to maximize its impact on both economic growth and environmental sustainability.

The studies conducted by Maria et al. (2023) and Tao and Chao (2023) offer critical insights into the macro-level trends of green finance research, using scientometric methods like VOSviewer and CiteSpace to map out the field’s trajectory. Su et al. identify key clusters in the literature, including climate financial risks, green bonds, and the integration of financial development in energy-economics models. They highlight the shift from a global approach to green finance toward more nationally focused financial mechanisms, which suggests that green finance is evolving into a localized tool for supporting economic innovation. Chen et al. take a more global perspective, noting the geographical distribution of green finance research, with China leading in publications and Japan in average citations. This shows the regional variations in green finance adoption and research intensity, reflecting different economic priorities and innovation strategies.

Similarly, the study conducted by Mohanty et al. (2023) offers a broad review of green finance products and their linkage to financial performance, using bibliometric methods to highlight emerging trends like green bonds and climate risk management. Their work aligns with the scientometric goals of identifying key themes and emerging trends, contributing to understanding green finance’s role in driving economic growth through innovative financial products. Debrah et al. (2022) take a more sector-specific focus, using systematic scoping reviews to explore the application of green finance in green buildings, an under-researched area. Their call for further research into AI-driven tools and performance assessments shows how innovation within green finance can directly contribute to economic and environmental efficiencies.

Finally, Ribeiro (2024) offers a unique perspective by integrating green finance with nation branding and brand culture, positioning green finance as a tool for economic growth and enhancing a nation’s global standing. The study identifies green branding as an emerging trend in green finance, representing a cultural shift in how countries align their economic strategies with environmental sustainability. This multidisciplinary approach expands the scope of green finance beyond traditional financial markets, suggesting that green innovation can also stem from branding strategies that promote sustainable national identities.

Together, these studies contribute to mapping the evolution of green finance and identifying its future directions as a catalyst for economic growth and innovation. Through a combination of scientometric analysis and sector-specific research, they reveal how green finance is becoming an increasingly integral part of global economic strategies, linking financial performance with sustainability. These findings offer clear future directions, including the need for more localized green finance mechanisms, the development of innovative financial products, and the exploration of new areas such as green branding and AI-enabled tools for green sectors like buildings. This mapping exercise shows that green finance, as it continues to evolve, can potentially drive economic transformation and environmental resilience.

3. Materials and Methods

3.1. Research Questions

This study aims to shed light on the progression and dynamics of green finance as a catalyst for economic innovation and growth. This analysis seeks to identify trends, key contributors, thematic developments, collaborative networks, and emerging topics within the green finance arena by exploring several key research questions. The research is designed to serve as a vital resource for academics, investors, and policymakers interested in harnessing green finance to foster sustainable economic growth while laying the groundwork for more specialized investigations into this evolving financial domain. The following research questions guide this study:

RQ1: Which years have seen the most significant activity in green finance as a driver of economic growth and innovation research?

RQ2: Who are the most influential researchers advancing the field of green finance within the context of economic growth and innovation?

RQ3: What central themes are present in the academic literature on green finance and its role in promoting economic growth and innovation?

RQ4: What are the primary thematic clusters related to economic growth and innovation in the green finance field?

RQ5: Which topics are currently emerging and gaining traction in the study of green finance as a catalyst for economic growth and innovation?

This study provides a comprehensive analysis that contributes to understanding green finance as an innovative tool for driving economic growth, promoting sustainable practices, and ensuring long-term financial stability.

3.2. Data Source, Search Strategy, and Processing

This systematic literature review was conducted in accordance with the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) 2020 guidelines. Following these guidelines ensures transparency, completeness, and methodological rigor in the reporting of all stages of the review, from literature search strategy to data extraction and synthesis. As illustrated in Figure 1, the research process adopts a systematic approach to mapping the evolution and future directions of green finance as a catalyst for economic innovation and growth. The PRISMA flow diagram provides a comprehensive overview of the identified, screened, eligible, and included articles, guiding readers through each phase of the study selection.

It begins with a well-defined search strategy, which involves gathering relevant literature on topics such as “Green Finance”, “Growth”, and “Innovation” from 2017 to 2024. The research equation used was: (TITLE-ABS-KEY (“Green Finance”) AND TITLE-ABS-KEY (“Growth”) AND TITLE-ABS-KEY (“Innovation”)). This search was conducted using the Web of Science and Scopus databases, yielding 535 records that were subsequently refined to 371 unique records after removing duplicates, ensuring data quality and relevance. Of these, 246 records were excluded for specific reasons: 126 were abstracts not relevant to the research aim, 175 abstracts were excluded for irrelevance, and 71 studies did not meet the research criteria at the first full-text screening. Ultimately, 125 studies met all inclusion criteria and were included in the final review. The selection of Web of Science (WoS) and Scopus as the primary databases enhances the breadth and reliability of the bibliometric analysis (Pranckutė 2021). WoS was chosen for its high-impact core sources, while Scopus offers broader journal coverage, together capturing green finance’s interdisciplinary and international dimensions (Marín-Rodríguez et al. 2023b). Although inherent biases—such as overrepresentation of English-language publications and limited Social Sciences coverage—are acknowledged, the authors justify this dual approach as essential to accurately represent the evolution of green finance (Mongeon and Paul-Hus 2016). The rationale for excluding other databases lies in ensuring a balance between depth and scope, given WoS and Scopus’s established relevance and compatibility with the study’s goals to map green finance’s role in sustainable economic growth and innovation (Pranckutė 2021).

The search for studies was conducted up until September 2024, ensuring the inclusion of the most recent publications. No restrictions were placed on language or publication type. Finally, the research period (2017–2024) was not pre-determined; instead, it organically emerged based on the articles available in the Scopus and Web of Science databases when applying our specified search equation. This approach ensures that the timeframe accurately reflects the recent developments and available literature on green finance, encompassing its evolution and trends within the defined thematic scope.

Two independent researchers collected the relevant data from each study, including key thematic clusters, study objectives, and outcomes. All disagreements between the researchers were resolved by consensus. No specific automation tools were used in this process, and no additional data were sought from study investigators.

The analysis covers various critical dimensions, including identifying key contributors (countries, institutions, and researchers), assessing citation impact, and examining keyword trends. The integration of R-Bibliometrix software version 4.3.0 (Aria and Cuccurullo 2017), VOSviewer software version 1.6.20 (van Eck and Waltman 2017), and Voyant tools software version 2.2 (Sinclair and Rockwell 2020) enables a comprehensive evaluation using bibliometric, network visualization, and text analysis methods. R-Bibliometrix was used for detailed bibliometric analysis, enabling us to identify influential authors, key trends, and collaborative networks within green finance research. VOSviewer complemented this by mapping term co-occurrence networks, which allowed for a clear visualization of thematic clusters. Finally, Voyant Tools provided text analysis, highlighting frequently used terms and concepts in the literature, establishing a foundation for subsequent keyword analyses. This multifaceted analytical approach enhances the ability to uncover significant patterns and trends within the green finance literature.

The synthesis process of the information involved tabulating the study characteristics and grouping them into predefined themes related to green finance, economic growth, and innovation. Studies that did not fit into the predefined groups were discussed separately. Tabular and visual displays of the results were used to summarize the findings. Figures and tables were employed to display trends, keyword analysis, and author collaborations.

Overall, the process outlined demonstrates a meticulous and thorough methodology for collecting, refining, and analyzing academic literature. By utilizing multiple databases, thorough data cleaning methods, and a diverse range of analytical tools, this research is strategically positioned to offer valuable insights into how green finance serves as an innovative instrument for driving economic growth and shaping the future of sustainable development.

4. Scientometric Analysis

4.1. General Description

The scientometric analysis of green finance research from 2017 to 2024, presented in Figure 2, reveals a rapidly evolving field with a growing global emphasis on environmental sustainability. The study covers 125 diverse sources, including journals and books, highlighting a broad range of academic and professional perspectives on green finance. This extensive timeframe provides a comprehensive overview of recent advancements and the field’s evolution during a period of increased focus on sustainability.

The analysis of 371 documents demonstrates a significant surge in research output, with a nearly 99% annual growth rate. This rapid increase reflects enhanced scholarly interest in green finance, with an average of 23.77 citations per document indicating substantial academic impact. The dominance of journal articles, early access articles, and various document types suggests that cutting-edge research is frequently published and quickly disseminated.

Collaboration metrics underscore the field’s dynamic nature, with an average of 3.27 co-authors per document and nearly 30% international co-authorship. This collaborative and global engagement highlights the interdisciplinary approach to addressing environmental challenges. The involvement of 835 authors and the predominance of multi-authored works indicates an interconnected research community dedicated to advancing green finance.

The scientific production related to the search terms “Green Finance”, “Growth”, and “Innovation” demonstrates a clear trend of increasing interest and research output over time, as shown in Figure 3. From 2017 to 2019, the field saw relatively modest growth in the initial years, with only one to three studies published each year. This slow start reflects the early stages of academic interest in the intersection of green finance, growth, and innovation. However, beginning in 2021, there was a significant surge in research, with 21 studies published that year. This rapid growth continued, as shown by the sharp increase to 61 articles in 2022 and an even more dramatic jump to 158 in 2023.

By 2024, the publication of 123 articles through September indicates that the field remains highly active. The sharp rise in research, especially after 2020, likely corresponds to a growing global emphasis on sustainability, the green transition, and the importance of innovation in driving economic growth within environmentally sustainable frameworks. This trend reflects the increasing urgency to address climate change, enhance green finance mechanisms, and foster innovation for sustainable development.

This study consolidates various frameworks of green finance from recent literature, underlining its role in harmonizing economic growth with environmental goals across regions. Key inferences from the article reveal that green finance is increasingly intertwined with digital finance, regional innovation policies, and industry-specific applications, demonstrating a pattern where green finance is both a response to environmental challenges and a proactive mechanism for fostering innovation.

A notable trend across different economies is the regional variability in green finance efficacy. For example, digital finance and renewable energy technology innovation (RETI) are highly impactful in China’s eastern regions, supporting green growth primarily at higher economic quantiles, while less-developed western regions show limited responsiveness. This geographic disparity emphasizes the need for region-specific policies and targeted support to balance the growth of green finance and its benefits across diverse socioeconomic landscapes (Wang et al. 2023).

Another trend involves the expansion of green bonds and other financial instruments in emerging economies like India and China. Despite India’s nascent green finance landscape, there is considerable momentum in renewable energy and transportation sectors. However, challenges such as low green bond ratings hinder broader adoption, illustrating the need for integrative policies involving government agencies, private entities, and NGOs to strengthen market credibility (Bhatnagar and Sharma 2021).

Green finance’s intersection with financial technology (fintech) is particularly prominent in countries like the UAE, where fintech is used to harmonize Islamic finance principles with sustainability goals. This trend highlights the dual function of fintech in providing accessible platforms for green finance instruments and improving regulatory compliance. Such integration demonstrates how technology can amplify green finance’s reach and impact, especially in regions with unique financial landscapes (Alblooshi 2022).

Overall, the study suggests that green finance is shifting towards a more adaptive and inclusive model. It underscores the value of tailored strategies—such as digital finance expansion, regional policy adjustments, and sector-focused investments—to optimize green finance’s role as a catalyst for economic resilience and environmental stewardship. These findings align with the global agenda for sustainability, reinforcing green finance’s growing influence on both macroeconomic stability and localized innovation (Wang et al. 2023).

4.2. Prominent Countries and Institutions

4.2.1. Leading Countries

Research on green finance has involved contributions from 34 different countries. In Figure 4a, the distribution of articles by country in research on “Green Finance”, “Growth”, and “Innovation” reveals a strong predominance of China, with 268 studies, representing 72.2% of the total. This substantial output underscores China’s leading role in advancing green finance research. China’s dominance is reflected in the sheer number of articles and the high proportion of single-country publications (SCP) at 60, representing 22.4% of the total, suggesting that significant research is conducted independently within China, indicating a robust national research infrastructure and a concentrated effort in this area.

Additionally, India and Pakistan each contributed eight articles (2.2% of the total), with notable differences in their collaboration patterns. India has a high proportion of single-country publications (7 out of 8), indicating a more isolated research approach, while Pakistan shows a higher rate of multi-country collaborations (6 out of 8), suggesting more international research engagement. Malaysia and Saudi Arabia, each contributing six articles (1.6%), show varying degrees of collaboration. Saudi Arabia exhibits a higher level of multi-country collaborations (4 out of 6), reflecting a more global approach, whereas Malaysia has a balanced distribution between single-country and multi-country publications.

Other countries, such as Bangladesh, South Africa, Germany, Indonesia, and Japan, contribute fewer articles but show interesting collaboration patterns. For instance, Japan’s research is entirely multi-country (3 out of 3), indicating a strong focus on international cooperation. In contrast, Germany and Indonesia have a mix of single- and multi-country collaborations, with Germany leaning towards multi-country collaborations. Bangladesh and South Africa show a balanced approach with moderate levels of collaboration. These patterns suggest varying degrees of international engagement and research focus among different countries, highlighting the global nature of green finance research and the diverse contributions from both leading and emerging research nations.

Figure 4b shows that, in the context of green finance research, citation metrics by country reveal diverse contributions. China leads with the highest total citations (6682) and a strong average of 24.90 citations per article, indicating its dominant and influential role in the field. Japan has a high average citation count of 253.30 per article, suggesting that, while its research volume is smaller, its impact is significant.

The United Arab Emirates and France also have high average citations (92.50 and 92.00, respectively), reflecting the notable influence of their research. India, South Africa, and Vietnam display moderate average citations, indicating emerging but less prominent contributions. Additionally, Germany, Cyprus, and the United Kingdom have lower total and average citations, indicating their more modest impact compared to the leading countries. These results highlight a global landscape with varied research impact levels and recognition in green finance.

Finally, Figure 4c illustrates nine clusters of author-country collaboration in green finance research, highlighting a diverse range of global partnerships. Cluster 1 (red), which includes Australia, France, and Middle Eastern countries such as Saudi Arabia and Qatar, demonstrates how advanced economies are collaborating with resource-rich nations transitioning toward sustainability. These partnerships suggest that countries heavily reliant on oil are aiming to diversify their economies through investments in green finance, while advanced economies contribute expertise and innovation in sustainable practices.

Cluster 2 (green), involving countries like Nigeria, Turkey, and the United Arab Emirates, represents emerging economies looking to incorporate green finance into their development plans. These countries face unique environmental challenges and see green finance as a tool to promote sustainable growth. Cluster 3 (blue), which includes the United States of America (USA), Germany, and the Philippines, stands out because it combines the research power of leading Western nations with the efforts of developing countries, facilitating the transfer of knowledge and resources to help less developed regions implement green financial solutions.

Cluster 4 (yellow) features China, Spain, and Uzbekistan, highlighting China’s leadership in green innovation along with contributions from Europe and Central Asia. Cluster 5 (purple), which includes Russia, Pakistan, and Malaysia, illustrates collaboration among countries facing economic and environmental challenges but committed to advancing green finance despite complex geopolitical environments. Cluster 6 (light blue) includes India, Bangladesh, and Lebanon, showing South Asia’s increasing interest in green finance as these countries work to improve their economic resilience and environmental sustainability.

Clusters 7 (orange) and 8 (light purple), which include Japan, Singapore, and South Korea, emphasize the role of technologically advanced Asian countries in driving green finance innovation. These nations are known for their technological expertise and are using it to support sustainable development. Finally, Cluster 9 (pink), consisting only of Poland, represents Eastern Europe’s growing engagement with green finance. This shows that even countries with less established green finance sectors are becoming involved, further expanding the global network of sustainable finance efforts.

These clusters reveal diverse international collaborations in green finance research, with significant representation from developed and emerging economies. The inclusion of countries from the Middle East, Asia, Europe, and the Americas reflects the global nature of green finance as a field. Additionally, the involvement of countries with varying economic and environmental challenges highlights the interdisciplinary and cross-regional approach needed to address sustainability through green finance mechanisms. Countries like the United States of America (USA), England, and China likely serve as key research hubs, while emerging economies increasingly engage in the field, contributing unique perspectives and regional insights.

The dominance of Asian countries, particularly China, in green finance research is largely tied to their pressing environmental challenges and governmental prioritization of sustainable economic growth. China, facing significant pollution and resource depletion issues, has proactively implemented policies and substantial financial investments to transition towards a greener economy. For example, China’s Green Finance Reform Pilot Zones and its strategic alignment with the carbon neutrality agenda underscore how policy-driven frameworks facilitate rapid growth in green finance initiatives and research output. Furthermore, China’s centralized policy approach allows for swift execution and scaling of green financial mechanisms, thus encouraging institutional and academic research to address these national priorities (Wang et al. 2023).

Conversely, limited production from other regions may stem from varying levels of policy support, market readiness, and resource allocation. In many countries, the green finance sector is still in its developmental stages, and financial instruments like green bonds are not as widely adopted due to regulatory or market credibility challenges, as seen in India. Additionally, institutional funding and research incentives for green finance in regions outside Asia, particularly in less developed or emerging markets, often lag behind, limiting academic and practical advancements. Consequently, while regions like the EU are making strides in green finance, factors like resource constraints, market instability, and regulatory barriers could restrict the global diffusion of research and practice in green finance (Bhatnagar and Sharma 2021).

4.2.2. Main Institutions

Figure 5a shows the institutional affiliations of the leading authors in green finance research, mainly focusing on “Green Finance”, “Growth”, and “Innovation”, revealing significant contributions from several key universities and research institutions. The results indicate a strong representation from institutions in China, reflecting the country’s prominent role in advancing green finance research.

Nanchang University, Jiangsu University, the University of International Business and Economics, and Wuhan University each stand out with 13 or 14 articles. These institutions are leading contributors, showcasing their substantial involvement in green finance research. Their high output suggests they are at the forefront of studying the intersections of green finance, economic growth, and innovation. This prominence may be due to their strong research programs and focus on sustainability and economic development.

Anhui University of Finance and Economics also shows a notable presence, with 12 studies emphasizing its role in financial and economic research related to green finance. This institution’s contributions highlight the growing importance of specialized finance universities in addressing environmental and economic challenges.

Beijing Institute of Technology, Capital University of Economics and Business, Chinese Academy of Sciences, Guizhou University of Finance and Economics, and Qingdao University each contributed ten articles. The involvement of these institutions further underscores the widespread interest and expertise in green finance research across various Chinese academic and research institutions. Their collective output indicates a robust research environment in China, focusing on green finance and its impact on growth and innovation.

Overall, the data reflect a concentrated effort within China to explore and advance green finance, with several leading institutions making significant contributions. This pattern highlights China’s commitment to sustainability and integrating green finance into broader economic and innovation strategies.

Figure 5b shows that several key institutions have emerged as significant contributors to the study of green finance research. Capital University of Economics and Business and Jiangsu University are particularly prominent, leading in the number of documents and citations. This indicates their substantial influence and extensive research output in the field. Beijing Institute of Technology and Xiamen University also make considerable contributions, with high citation counts and notable connections within the research community.

Conversely, institutions such as Chongqing Technology and Business University and China University of Geosciences show promising potential in their specialized areas, with a focus that may be evolving. Similarly, Shandong University of Finance and Economics and Shanghai University of Finance and Economics demonstrate active engagement in the field, contributing meaningfully to the research landscape. Although their impact may be more moderate than that of leading institutions, their involvement highlights their growing presence and valuable contributions to green finance.

Figure 5a,b illustrate a concentrated effort within China to advance green finance research. The high number of articles and citations from these leading institutions underscores China’s commitment to integrating green finance into broader strategies for sustainability and innovation. This trend highlights the country’s prominent role in driving research that addresses environmental and economic challenges.

4.3. Most Relevant Researchers

Table 2. Top 10 most relevant researchers on green finance research. TGC: total global citations; TCT: total citations in the topic; NP: number of publications; PY start: publication year start. Source: authors’ own research using the Bibliometrix tool, as well as Scopus and WoS databases.

	Researcher	Institution, City, Country	h_Index	TGC	TCT	NP	PY_Start
1	Irfan, Muhammad Hamza	Shandong Management University, Jinan, China	64	12,031	8827	270	2019
2	Sharif, Arshian Aslam	Sunway University, Bandar Sunway, Malaysia	62	13,700	2354	192	2019
3	Razzaq, Asif	Dalian University of Technology, Dalian, China	55	7705	2922	109	2021
4	Zhang, Dayong	Southwestern University of Finance and Economics, Chengdu, China	49	9588	1127	140	2019
5	Zhang, Dongyang	Capital University of Economics and Business, Beijing, China	32	3061	1604	70	2017
6	Yang, Xiaodong	Xinjiang University, Urumqi, China	28	3601	1861	63	2021
7	Zhou, Guangyou	Fudan University, Shanghai, China	25	1403	553	15	2021
8	Wang, Kaihua	Qingdao University, Qingdao, China	18	1261	262	57	2022
9	Yu, Chinhsien	Southwestern University of Finance and Economics, Chengdu, China	11	1303	668	25	2018
10	Liu, Yishuang	Wuhan University, Wuhan, China	9	464	119	15	2020

provides a summary of the ten most relevant researchers in the field of green finance as a catalyst for economic innovation and growth, along with their institutional affiliations and other significant information (Gonzalez-Ruiz et al. 2024; Marín-Rodríguez et al. 2023b). The researchers are ranked by their total citations within the subject area (TCT) to highlight the most prominent figures based on citation metrics. This analysis utilized Scopus for the total global citation indicator (TGC) and compared it with TCT data derived from Bibliometrix in R. The objective was to assess the specific topics where these scholars have made the most substantial impact.

According to Table 2, Chinese researchers dominate the list of top contributors to green finance research, with scholars such as Muhammad Hamza Irfan and Dayong Zhang leading the field. This underscores the rapid growth of research in this domain, with newer academics like Xiaodong Yang and Kaihua Wang making significant contributions in a relatively short period. This trend aligns with the broader observation of China’s central role in advancing research on green finance, economic growth, and innovation.

In the analysis of Table 2, we specifically focus on the contributions of the first two authors due to their substantial and highly relevant contributions to the field of green finance, which align closely with our research objectives. Their work provides critical insights into the mechanisms linking green finance to innovation and sustainable growth, making their studies particularly pertinent to our analysis. While the other authors have also made valuable contributions, the first two authors’ research offers foundational perspectives and empirical evidence central to understanding the current advancements and future directions in green finance.

The studies authored by Muhammad Hamza Irfan focus extensively on the relationship between green finance, innovation, and sustainable growth, with strong empirical analysis and valuable policy recommendations. Studies conducted by Irfan et al. (2022) and Luo et al. (2023) examine how inclusive green finance and the digital economy foster green innovation, particularly within China’s regional development. Both papers employ econometric models, such as panel vector autoregression and dynamic threshold panel models, to evaluate the influence of green financial reforms, digital advancements, and policy interventions on sustainable economic transformation. While these studies share the common theme of how policy-driven green finance reforms impact innovation, the former emphasizes financial mechanisms and policy zones, and the latter explores the digital economy’s nonlinear and spatial effects on innovation.

Other studies by Irfan examine different facets of green innovation, mainly focusing on internet development and entrepreneurship (Fang et al. 2022) and the material footprint (Razzaq et al. 2021). The former paper highlights the role of internet growth and entrepreneurship in driving innovation efficiency through spatial spillovers, demonstrating how entrepreneurial activities strengthen regional green innovation. In contrast, the latter study assesses the impact of green innovation on resource consumption, focusing on the quantile-dependent effects of infrastructure development on reducing material footprints. These papers contrast in their focus, with one leaning toward entrepreneurial and digital influences on innovation, while the other emphasizes resource management and environmental impacts.

Lastly, some of Irfan’s studies address internet-driven green economic growth and biogas technology adoption. For example, Wang et al. (2022a) explore how internet development facilitates industrial upgrades and enhances environmental quality, thereby indirectly supporting economic growth. In contrast, Ali et al. (2022) examine the barriers to biogas technology adoption in Pakistan, offering policy solutions to overcome economic and governmental challenges. Both papers contribute to sustainability discussions, but while one focuses on internet-driven economic growth, the other addresses renewable energy technology adoption, highlighting the breadth of Irfan’s contributions to sustainability research.

On the other hand, studies authored or co-authored by Sharif and Arshian Aslam enrich the understanding of green finance as a tool for sustainable growth and innovation across diverse regions. While the methodologies and frameworks employed in these studies share standard econometric rigor, their findings offer region-specific insights into the challenges and successes of implementing green finance strategies, underscoring the complex interplay between economic growth, environmental policies, and technological innovation in different global contexts.

For example, according to Sharif’s studies, green finance is a recurring element used to address climate change and foster sustainable growth. For instance, Irfan et al. (2022) focus on how inclusive green finance stimulates green innovation in China by driving sustainable economic transformation, with industrial structure, economic growth, and R&D investment identified as core channels. Similarly, the study on G7 countries by Sharif et al. (2022) examines how green financing and green technology innovation can mitigate CO₂ emissions, revealing a shared interest in examining the impact of green finance on environmental sustainability.

Additionally, several of Sharif’s studies apply advanced econometric methods to analyze the effects of green finance. For instance, both the G7 countries paper and the study on ASEAN-6 countries by Sharif et al. (2023) employ CS-ARDL techniques and other robust panel data models to assess long-run relationships between green finance, growth, and innovation. These studies also highlight the significant role of green energy and environmental taxes in promoting green technology innovation, indicating a shared belief that green investments and regulatory policies are critical for long-term environmental sustainability.

In conclusion, Irfan’s and Sharif’s research significantly advances the green finance field, though their regional focus and specific methodologies distinguish their contributions. Irfan’s work provides a detailed analysis of the interaction between green finance, digital advancements, and innovation, while Sharif’s studies offer a broader perspective on the impacts of green finance across different global contexts. Together, these contributions enhance the understanding of green finance’s role in driving sustainable development and inform future policy directions in this critical area of research.

4.4. Most Cited Documents

Table 3. Top 10 cited studies in the research of green finance. Source: authors’ own research using the Bibliometrix tool, as well as Scopus and WoS databases.

#	Author	Source	Total Citations	TC per Year	Normalized TC
1	Yu et al. (2021)	Energy Policy	545	136.25	4.95
2	Zhang et al. (2021)	Energy Policy	470	117.50	4.27
3	Irfan et al. (2022)	Technological Forecasting and Social Change	353	117.67	6.94
4	Zhou et al. (2022)	Ecological Economics	264	88.00	5.19
5	Jiakui et al. (2023)	Journal of Cleaner Production	260	130.00	14.47
6	Tan and Zhu (2022)	Technology in Society	234	78.00	4.60
7	Wang and Wang (2021)	Resources Policy	227	56.75	2.06
8	Wang et al. (2022c)	Energy Economics	161	53.67	3.16
9	Zhang et al. (2022a)	Energy Economics	147	49.00	2.89
10	Tolliver et al. (2021)	Asian Economic Policy Review	143	35.75	1.30

highlights the most frequently cited works, emphasizing research papers, studies, or articles that have received considerable attention and citations from other scholars in the green finance field.

The authors across the selected studies share a common interest in exploring the relationship between green finance and its impact on green innovation, economic growth, and sustainability. For instance, Yu et al. (2021) and Irfan et al. (2022) both investigate how green finance alleviates financial constraints, ultimately driving green innovation. These studies highlight the significance of policy interventions and the need for supportive frameworks to enhance the effects of green finance. However, while Yu focuses on the vulnerabilities of privately owned enterprises compared to state-owned enterprises in accessing green finance, Irfan expands on the role of industrial structure and economic growth as mediators in the relationship between green finance and innovation, providing a broader perspective on the mechanisms at play.

In contrast, Zhang et al. (2021) and Zhou et al. (2022) delve deeper into the macroeconomic impacts of green finance, particularly in the context of national development strategies. Zhang et al. (2021) emphasizes the importance of public spending on education and R&D to foster green economic growth in Belt and Road Initiative (BRI) countries, while Zhou et al. (2022) highlights fintech’s role in amplifying green finance’s effects on regional green growth in China. Both studies find that green finance significantly contributes to economic development. Yet, Zhang et al. (2021) observes varying effects based on a country’s GDP per capita, whereas Zhou et al. (2022) identifies regional heterogeneity within China, with eastern regions benefiting more from fintech-driven green growth than central and western regions.

Further differentiation is seen in Jiakui et al. (2023) and Tan and Zhu (2022), who extend the conversation to specific policy instruments and corporate-level dynamics. Jiakui et al. (2023) explores the integration of green finance, financial development, and green technology innovation into a unified framework, emphasizing their collective role in enhancing green productivity across Chinese provinces. In contrast, Tan and Zhu (2022) examine how ESG ratings promote corporate green innovation by addressing financial constraints and raising environmental awareness among managers. Both studies underscore the importance of green finance but diverge in scope: Jiakui et al. (2023) focuses on provincial productivity, while Tan and Zhu (2022) examines corporate behavior, revealing different scales of green finance impact across levels of analysis.

The comparative analysis of these authors’ contributions provides a deeper understanding of the multifaceted impact of green finance on innovation, economic growth, and environmental sustainability. This synthesis reveals key themes, such as the pivotal role of policy frameworks, the differential effects of green finance across regions and industries, and the integration of fintech and corporate strategies in amplifying green innovation. These insights contribute significantly to the broader discourse in analyzing the trajectory and future perspectives of green finance by contextualizing the theoretical and empirical developments in the field, identifying gaps in regional and sectoral implementation, and suggesting avenues for future research. Specifically, the contrasted approaches of these authors offer a comprehensive perspective that can inform policy recommendations and guide future research toward optimizing the potential of green finance across different economic and institutional contexts, ultimately advancing global sustainability goals.

4.5. Keywords Analysis

4.5.1. Analysis of the Top Keywords

In this study, the filtered articles were first analyzed using Voyant Tools, an online text analysis software (Sinclair and Rockwell 2020). This analysis was followed by a thorough manual review of the abstracts, introductions, and conclusions to identify the most pertinent keywords for the research, as shown in Figure 6.

The analysis of terms found in the abstracts and author keywords yielded several insightful metrics about the corpus. The vocabulary density, calculated at 0.067, indicates a relatively low level of lexical diversity, reflecting a smaller proportion of unique words compared to the total word count of the text. The readability index, computed at 18.313, suggests a higher level of textual complexity suitable for readers with advanced education levels. The average sentence length of 27.1 words indicates moderate syntactic complexity, characterized by more extended and intricate sentence structures.

The frequent occurrence of key terms such as “green” (3084 mentions), “finance” (1516 mentions), “development” (925 mentions), “innovation” (890 mentions), and “energy” (816 mentions) within the analyzed corpus suggests a concentrated focus on the intersection of sustainability, economic advancement, and financial innovation. These terms underscore the pivotal role of green finance as a mechanism to promote sustainable economic growth, reflecting its integration into broader development strategies.

The prominence of “green” and “finance” indicates a foundational emphasis on environmentally conscious financial practices, while “development” and “innovation” highlight the dynamic processes through which green finance is leveraged to achieve economic progress (Shen et al. 2024b; Zhang et al. 2024a). The notable frequency of “energy” emphasizes the sector’s critical relevance in green finance discourse, aligning with global priorities for sustainable energy solutions (Dong et al. 2024; Lin et al. 2024). These findings illustrate how green finance is emerging as a key innovation tool that shapes current research agendas and the strategic direction for future studies in sustainable economic development.

4.5.2. Emerging Trends in Top Keywords

The analysis of the top keywords revealed two separate research trends within the academic literature. In Figure 7, the upper portion highlights the links between significant studies on “Green Finance”, “Growth”, and “Innovation”. Meanwhile, the lower portion outlines the three main research trends identified. The first trend, depicted in Figure 7, underscores their centrality to the research domain, confirming their alignment with the key themes of financial sustainability and economic progress. This trend points to a cohesive research focus on leveraging green finance to promote both innovation and sustainable growth, aligning with global efforts to transition toward a low-carbon economy.

The related keywords, such as “environmental”, “energy”, and “carbon”, emphasize the critical role of renewable energy and carbon reduction initiatives, illustrating how green finance mechanisms are applied to address environmental challenges (Nepal et al. 2024; Wu et al. 2024). Green finance significantly enhances energy resilience and supports low-carbon transitions, as evidenced by its contribution to adjusting industrial structures and improving carbon emission performance (Zhang et al. 2024b). These findings highlight the importance of integrating financial support with technological advancements to achieve carbon neutrality and sustainable growth (A. Liu et al. 2024).

Additionally, the appearance of country-specific terms like “China” and “Switzerland” in Trend 1 highlights regional contributions, with China being a dominant player in green finance due to its proactive green policy measures and innovation efforts (Li et al. 2024a; Li and Zhou 2024). The inclusion of sectoral keywords such as “technology”, “resources”, and “pollution” reflects a focus on technological advancements and resource management in achieving green finance goals (Li et al. 2024b). The interdisciplinary nature of this research is further evidenced by terms like “economic”, “social”, and “policy”, indicating that green finance is being approached from multiple perspectives, integrating environmental, social, and economic factors (Li and Zhou 2024; Lin and Zhong 2024). This keyword trend analysis emphasizes the complexity of the research field and provides valuable insights into the holistic approaches necessary to foster green growth and innovation (Nie et al. 2024).

The second trend encapsulates the growing importance of green finance in promoting sustainable growth and technological innovation. The emphasis on keywords such as “green”, “finance”, “policy”, and “management” underscores the research’s focus on sustainable financial mechanisms as central drivers of environmentally responsible investment and innovation (Deng et al. 2024; Feng et al. 2024). This focus reflects a robust engagement with policy frameworks and management practices essential for implementing green finance strategies, highlighting the crucial role of regulatory structures (Fan and Zhang 2024; Ma et al. 2024). Such frameworks are instrumental in fostering growth and innovation, positioning green finance as a transformative force that facilitates financial support and catalyzes the adoption of green technologies across various sectors (Q. Cao et al. 2024).

Moreover, Trend 2 focuses on China within the keyword trends, which indicates a significant study area, reflecting China’s proactive strategies toward green technology and carbon reduction (Xin et al. 2024). The inclusion of terms like “clean”, “ethics”, and “innovation” suggests that the research is mainly concerned with how green finance can fund technologies that mitigate environmental degradation (Jiang et al. 2024; Liao et al. 2024). This alignment with clean energy production and technological advancement highlights the field’s evolution toward integrating practical innovations with policy management (Sun and Waqas 2024). By exploring these trends, the research delineates how green finance is a crucial link between ethical investment decisions, policy-making, and technological progress, thus guiding nations and industries toward sustainable developmental trajectories and enhancing global leadership in environmental conservation (Simeon et al. 2024).

4.6. Trend Topics

4.6.1. Evolution of the Topics

Two prominent mapping techniques, trending topic analysis and factorial analysis, offer critical insights into the development of the literature and the clustering of authors’ keywords. Figure 8 displays the identified themes and clusters based on authors’ keywords, applying a minimum frequency of five occurrences per article, assessed across three time periods annually.

In Figure 8a, several key terms emerge with significant frequency, highlighting the critical themes within the field. “Green finance” leads with a frequency of 222, underscoring its centrality to discussions around environmental sustainability and financial instruments designed to promote sustainable practices. The term “financial development” appears 10 times, suggesting that as financial systems evolve, there is an increasing emphasis on integrating green initiatives into broader economic frameworks. The mention of “green credit” and “green economy”, each with a frequency of 10 and 8, respectively, reflects the growing recognition of tailored financial products and economic systems prioritizing environmental goals. Furthermore, “renewable energy” (33) and “technological innovation” (22) highlight the interconnectedness of green finance with advancements in clean energy and technology, essential for facilitating a sustainable transition. The focus on “carbon emissions” (8) points to the urgent need for strategies to mitigate environmental impact, while “green growth” (15) emphasizes the potential for sustainable economic expansion. The prominence of “China” (38) in this analysis signals the country’s pivotal role in both the global green finance landscape and renewable energy markets. Collectively, these terms illustrate the evolving discourse in green finance, emphasizing its importance as a driving force for economic development, environmental stewardship, and technological advancement, thus informing future directions and strategies in the sector.

The cluster analysis illustrated in factorial analysis in Figure 8b offers a detailed visualization of the interrelationships among critical variables within the domain of green finance. This analysis reveals three principal clusters that emerge as pivotal in understanding the role of green finance as an innovative tool for driving economic growth, promoting sustainable practices, and ensuring long-term financial stability.

Cluster 1: Green Finance and Innovation

Cluster 1 includes keywords such as “green finance”, “renewable energy”, “green innovation”, “green technology innovation”, “technological innovation”, and “sustainable development”. This cluster emphasizes the intersection of green finance with technological advancements and sustainability goals. Authors in this cluster contribute by exploring how green finance mechanisms—such as green bonds and loans—are pivotal in funding innovations that address climate change. For example, Wei et al. (2022) demonstrate the essential role of renewable energy in reducing carbon footprints while stressing the importance of R&D and human capital investments to drive sustainable technological growth. In line with this, Luo et al. (2024) underscore the role of green finance reforms in China, noting their influence on regional environmental outcomes and firm-level impacts. Additionally, integrating artificial intelligence in green finance to mitigate greenwashing behaviors, as highlighted in Zhang (2024), further advances the understanding of technological innovations. These studies collectively reinforce the idea that green finance acts as a catalyst for innovation, offering both financial backing and policy frameworks that ensure technological advancements align with environmental goals. The intersection of finance and green technology underscores the necessity of developing both areas to meet global sustainability targets.

Cluster 2: Economic Growth, Carbon Neutrality, and Fintech

Cluster 2, containing keywords like “economic growth”, “carbon neutrality”, “fintech”, “CO₂ emissions”, and “human capital”, addresses the relationship between economic development and environmental sustainability. This cluster is centered on the challenge of balancing economic expansion with carbon reduction strategies, emphasizing carbon neutrality as a key objective. In the analysis of this cluster, authors highlight how financial technology (fintech) can accelerate progress toward reducing CO₂ emissions while maintaining economic growth (Udeagha and Ngepah 2023). For instance, it explores the positive role that green finance and fintech play in improving environmental quality, suggesting that digital financial platforms can streamline investments in green projects. The carbon neutrality concept is another key theme, with studies like Bai et al. (2022) showing how green finance mechanisms, coupled with robust industrial policies, can enhance carbon reduction strategies. This cluster’s focus on integrating technological advancements (fintech) with green finance contributes to a future-oriented discussion, emphasizing the potential of these tools in meeting economic and environmental goals simultaneously.

Cluster 3: Renewable Energy and Urbanization

Cluster 3 is represented by keywords such as “renewable energy consumption”, “urbanization”, and “energy efficiency”. This cluster focuses on the role of renewable energy in urban settings, highlighting the impact of energy consumption patterns on sustainable urban growth. This body of work emphasizes how renewable energy can support sustainable urban development, which is crucial as urbanization continues to grow globally. Authors in this cluster, such as Hailiang et al. (2023), illustrate the positive impact of renewable energy on tourism and urban development, demonstrating that transitioning to cleaner energy sources is essential for maintaining the ecological balance in densely populated urban areas. The studies also highlight the need for energy efficiency in urban settings, where rapid consumption threatens sustainability. The inclusion of keywords such as “energy efficiency” reflects ongoing concerns about the unsustainable nature of current energy use patterns in cities, thus emphasizing the critical role of urban planners and policymakers in integrating renewable energy into the urban fabric.

These clusters reveal the complex interplay between green finance, innovation, public policy, and technological development, highlighting the need for collaborative efforts among various stakeholders to foster sustainable economic growth. Each study contributes unique perspectives on how financial mechanisms can drive green innovation, demonstrating the pivotal role of policy and governance in realizing these outcomes.

4.6.2. Topics with High Development and Relevance

Figure 9 presents a thematic map that categorizes the subjects into four distinct quadrants based on their density (level of development) and centrality (degree of relevance). A crucial area of interest emerges, emphasizing the need for a more in-depth and comprehensive investigation of the themes located in the upper-right quadrant, given their heightened relevance and importance (Chansanam and Li 2022; Marín-Rodríguez et al. 2022, 2024).

In the domain of green finance as a driver of economic innovation and growth, it is essential to focus on and delve deeper into the topics within this quadrant to gain a more nuanced understanding and valuable insights into relevant fiscal stability challenges. The subsequent two sets of keywords highlight the most promising areas for further research into green finance as a driver of economic innovation and growth: (i) green credit, total factor, and factor productivity; and (ii) green finance, sustainable development, and green innovation. Within the framework of green finance as a facilitator of economic innovation and growth, these keyword clusters signify potential pathways for in-depth exploration and comprehension of the critical factors influencing the role of green finance in fostering economic advancement and innovation.

Several studies highlight the nuanced relationship between financing mechanisms and innovation outcomes in green credit, total factor, and factor productivity. For instance, Yu et al. (2021) emphasize the detrimental effects of financing constraints on green innovation capabilities, especially for privately owned enterprises in China, arguing that the lack of access to green credit impairs innovation performance. In contrast, Irfan et al. (2022) present a broader perspective, indicating that inclusive green finance can significantly enhance total factor productivity by facilitating technological innovation and industrial structure upgrading across regions in China. Furthermore, Li et al. (2022) explore how green credit policies can influence private enterprises, demonstrating that while these policies promote green upgrading, they can inadvertently stifle innovation in high-polluting firms. Collectively, these studies illustrate a complex interplay between green credit accessibility and the resultant productivity of firms, underscoring the necessity for tailored financial policies that consider industry characteristics and firm ownership structures.

On the other hand, the intersection of green finance, sustainable development, and green innovation reveals a multi-dimensional approach to fostering environmentally friendly economic growth. Researchers, such as Tolliver et al. (2021), argue that green finance initiatives are crucial for advancing sustainable practices, as evidenced by their positive impacts on Asian green innovation activities. This sentiment is echoed by Lin et al. (2023), who illustrate how green finance can play a pivotal role in driving China’s low-carbon power generation transition, explicitly emphasizing the importance of technological innovation as a facilitator. Conversely, studies like those of Xu and Zhu (2024) highlight the limitations of current green finance policies, indicating that despite their potential to promote innovation and sustainability, issues like greenwashing undermine their effectiveness and hinder the development of a robust green finance framework. Thus, while the overarching narrative supports the role of green finance in promoting sustainable development, contrasting viewpoints within the literature call attention to systemic barriers and the need for regulatory frameworks that mitigate the risks associated with green financial instruments.

Together, these clusters emphasize the need for targeted financial policies and robust regulatory measures to maximize the potential of green finance in driving economic innovation and sustainable growth. To address the unique challenges within (i) green credit, total factor, and factor productivity, policymakers should develop accessible financing options, particularly for small and medium-sized enterprises (SMEs), such as low-interest loans or grants incentivizing green innovation. Additionally, regulatory frameworks must ensure transparency to prevent greenwashing and maintain trust among stakeholders.

In the context of (ii) green finance, sustainable development, and green innovation, fostering collaborations between the public and private sectors is essential to align investment strategies with sustainable development goals (SDGs). This can drive the development of technologies that promote low-carbon growth. Investing in education and capacity-building will equip stakeholders to navigate the evolving landscape of green finance effectively. By integrating these targeted policies and regulatory measures, green finance can play a pivotal role in enhancing economic resilience and positioning itself as a key driver of sustainable development while addressing climate change challenges.

5. Discussion

Following the theoretical foundations established in prior research, this subsection delves into the practical applications of green finance. It examines the policy frameworks supporting green finance, the corporate strategies that leverage green financing for competitive advantage, and the real-world cases that demonstrate its role in sustainable economic transformation. By moving beyond theory, this section highlights the tangible impacts of green finance, underscoring its ability to drive sustainable development through strategic, policy-backed financial initiatives. Contrasting recent studies on the practical impacts of green finance reveal differences in policy focus, corporate strategies, and real-world applications across various contexts and scales. This subsection provides a synthesis and critical comparison of foundational studies.

5.1. Policy and Regulatory Impact

In examining the role of policy and regulation in fostering green finance, recent studies underscore the importance of regulatory frameworks, financial mechanisms, and targeted policies. For instance, the study by Liu et al. (2024) utilizes econometric models to show how Low-Carbon Energy Portfolio Standards (LC-EPS) in the U.S. have contributed to carbon reduction, identifying nuclear power, high-tech exports, and innovations as key drivers. This research presents the inverted U-shaped Kuznets curve as a basis for understanding how economic growth aligns with emissions reduction over time. Policymakers are advised to focus on these regulatory interventions, particularly emphasizing technology exports and nuclear energy as avenues for reducing emissions. This study provides essential insights for U.S. policy architects advocating for sustainable finance as a strategy to mitigate climate change via decarbonization.

Further emphasizing policy impacts, Lee et al. (2023) reveal the positive effects of green finance on decarbonization, particularly in regions with intensive carbon outputs. Their research identifies conditions such as government support, urbanization, and high levels of human capital as crucial for maximizing green finance’s decarbonizing potential. This study also highlights the roles of internet accessibility, financial systems, and educational advancement as moderators that enhance green finance effectiveness. Liu et al.’s findings propose that an integrated policy approach—one that accounts for urban planning, educational investment, and technology adoption—may foster a more robust environment for green finance. This nuanced approach emphasizes the broader socio-economic factors that enhance green finance’s efficacy, particularly in regions with high carbon dependence.

In contrast, Wang et al. (2022b) examine how stricter environmental regulations impact green technology innovation, finding that while these regulations promote innovation, they may also stifle new businesses in certain sectors, particularly fossil fuels. This study emphasizes a disparity in regulatory impacts based on economic context, with stricter regulations showing varied effects across sectors and cities. This perspective is complemented by Fan and Shahbaz (2023), who compare green finance instruments globally and argue for diverse policy adaptations that reflect different economic contexts. By comparing developed and developing nations, they suggest that while green finance supports carbon neutrality, the mechanisms and pace differ based on local needs and resources. These studies underscore the need for differentiated policies that balance innovation and economic growth while adapting to sector-specific challenges and regional disparities.

5.2. Corporate Strategy and Green Innovation

The reviewed studies reveal diverse corporate strategies and governance approaches that impact green innovation, emphasizing management and financial structures. For instance, research by Javeed et al. (2022) highlights the role of environmental strategies and management diversity in driving green innovation. Their findings show that companies with clear environmental goals, sustainable committees, and active corporate social responsibility initiatives are more likely to implement green innovations, underscoring the influence of diverse management teams, including CEO, ownership concentration, and gender diversity, on green innovation practices. This study situates corporate strategy within a broader environmental framework, suggesting that leadership and strategic alignment are vital for green innovation, particularly within companies committed to sustainability.

Contrastingly, Wen et al. (2023) research on Chinese firms underscores the challenges posed by strategic deviation, finding that it detracts from green innovation by increasing agency costs and financial constraints. Their analysis reveals that while state-owned enterprises and heavily polluting industries can partially offset these negative effects, strategic misalignment generally hampers environmental initiatives. This study offers a cautionary perspective on corporate strategy, suggesting that misaligned priorities may increase organizational inefficiencies that, in turn, limit resources for green innovation. The findings contribute to the discussion by highlighting how the stability of corporate strategy influences innovation outcomes, mainly where environmental goals are vulnerable to strategic deviation.

Adding a financial dimension, Rao et al. (2022) demonstrate that digital finance can enhance green innovation by improving transparency and easing financial constraints, which supports environmental governance. Their findings indicate that by facilitating resource allocation, digital finance positively affects green innovation, especially in mature and state-owned enterprises. This study complements the findings on corporate governance, emphasizing the role of digital finance as a structural enabler for innovation, particularly in emerging markets. Similarly, Ali (2024) find that effective corporate governance in Pakistani manufacturing firms is critical for better Corporate Environmental Performance (CEP), particularly through green finance mechanisms and oversight by independent audit committees. These studies point to the significance of aligning financial strategies and governance frameworks with green goals to maximize corporate contributions to sustainable development.

5.3. Economic Resilience and Sector-Specific Green Finance

Recent studies exploring how green finance fosters economic resilience across varied contexts reveal distinct applications and impacts. Within the BRICS economies, recent research by Cao and Tao (2023) highlights the relationship between green finance, natural resource availability, and economic resilience, using quantile regression to show how green finance promotes stability in contexts of both resource abundance and scarcity. This nuanced perspective underscores that targeted policy interventions can enhance the adaptive capacity of economies by leveraging green finance in regions where resource constraints might otherwise limit economic growth.

Similarly, Shen et al. (2024a) focus on the post-COVID-19 landscape in China, emphasizing green finance’s role in stimulating eco-friendly recovery through econometric models such as VECM and NARDL. This study reveals that green finance initiatives not only support sustainable project funding but also actively drive economic revitalization, demonstrating a clear pathway for resilience through green financial strategies. By identifying areas for improvement, including policy support, technological innovation, and international collaboration, this study provides essential insights into how green finance can anchor economic resilience, particularly in response to global challenges. This aligns with the broader scope of green finance’s potential to foster long-term economic stability and ecological health across various regions within the BRICS nations.

Finally, an analysis by Liu (2024) on rural economies highlights green finance’s impact on sector-specific economic resilience, particularly in agricultural and rural infrastructure transformations. Green finance facilitates the shift to sustainable agricultural practices, advancing climate resilience through organic and precision farming while supporting rural infrastructure upgrades, such as irrigation improvements and agricultural waste recycling. The study emphasizes that a robust green financial system, with policy incentives and awareness programs, is essential for rural community adaptation. These findings underscore green finance’s capacity to target specific economic sectors, reinforcing that green finance sustains general economic resilience and directly addresses the unique needs of sectoral economies (Zhang et al. 2023).

5.4. Environmental Regulation and Renewable Energy

Lastly, the findings of several studies reveal the nuanced role of environmental regulation (ER) in renewable energy development and economic sustainability in China. The study by Zhao and Luo (2017) explores ER’s driving impact on renewable energy, uncovering that income level and employment influence renewable energy expansion differently over time. A key insight is that, while income increases renewable generation, the job creation potential of renewable energy is less clear under high unemployment, suggesting that renewable energy initiatives should consider economic structure to optimize employment outcomes.

Further insights into ER’s dynamic role come from Chen et al. (2024), whose spatial econometric model reveals that ER and renewable energy technology innovation (RET) support CO₂ reduction but only beyond a critical economic threshold, forming an “inverted U-shaped” relationship. This indicates that ER and RET can effectively reduce carbon emissions in more economically developed areas, while excess renewable energy efforts may inadvertently hinder RET. This finding underlines the complexity of green finance applications, particularly when economic context dictates the effectiveness of ER measures in promoting sustainability.

Adding to the discussion, Zhao et al. (2022) and Chen et al. (2024) examine the influence of stringent ER on renewable energy and green economic growth. They find a U-shaped, non-linear impact of ER on green economic growth, amplified by regional spillover effects. This highlights how ER supports renewable energy expansion and aligns with broader economic development strategies, underscoring green finance’s role in fostering regionally cohesive sustainable growth. By framing ER as both a driver and a catalyst, these studies contribute to the present article’s broader goal of understanding green finance as a tool for coordinated and region-specific economic and environmental innovation.

The analysis underscores the transformative role of green finance in driving sustainable economic growth, bridging theoretical foundations with actionable outcomes. By exploring policy frameworks, corporate strategies, and real-world applications, this section demonstrates how green finance translates into measurable impacts, underscoring its potential to advance sustainable development goals. The findings emphasize the importance of tailored policy and regulatory frameworks in strengthening green finance’s effectiveness for emissions reduction and economic resilience, highlighting the influence of regional and sector-specific dynamics. Furthermore, corporate strategies that integrate green finance foster competitive advantages, with innovative management structures and digital finance emerging as pivotal in supporting green initiatives. Real-world case studies, particularly within BRICS nations, reveal how green finance supports economic resilience and sectoral shifts, such as sustainable agriculture, addressing both pandemic recovery needs and long-term eco-friendly transitions. This discussion also highlights the nuanced effects of environmental regulation on renewable energy development, demonstrating how green finance adapts to different economic contexts to foster regionally tailored growth. Collectively, these insights reveal green finance’s multifaceted capacity to drive sustainable, resilient economies across diverse global contexts.

6. Conclusions

Green finance has emerged as an indispensable tool in the global pursuit of sustainable economic development, addressing the dual challenges of fostering economic growth and combating climate change. This scientometric analysis underscores the critical role of green finance in driving innovation, transforming policies, and advancing technological advancements. By offering a comprehensive overview of the evolution of green finance research, this study provides significant insights into its potential to catalyze economic growth and innovation, making it a highly relevant topic for policymakers, researchers, and investors.

The period from 2019 to 2022 marked a significant surge in green finance research, coinciding with increased global efforts to meet climate goals under the Paris Agreement. This spike in academic activity reflects both the growing interest in green finance and the urgent need to incorporate sustainable economic practices, with China playing a dominant role in research output during this time.

Influential researchers, such as Muhammad Hamza Irfan and Dayong Zhang, have extensively advanced the field, particularly in exploring the intersections of green finance, innovation, and sustainable growth (Irfan et al. 2022; Luo et al. 2023). Their work, heavily cited in the academic community, highlights the critical role of green finance in shaping macroeconomic trends and fostering green innovation.

Several core themes dominate the literature, including the importance of green bonds, green credit, and fintech in promoting sustainable economic growth. Central thematic clusters such as “Green Finance and Innovation”, “Economic Growth, Carbon Neutrality, and Fintech”, and “Renewable Energy and Urbanization” illustrate the multidimensional nature of green finance and its ability to act as both a financial enabler and a driver of innovation. Emerging topics like the impact of green credit on total factor productivity and the intersection of green finance with technological innovation and sustainable development are gaining momentum. However, challenges such as greenwashing and fragmented regulatory frameworks continue to pose significant barriers to realizing the full potential of green finance.

While this study offers valuable insights, its focus on published literature and the predominant emphasis on China presents a limitation, as the global landscape of green finance remains underexplored. Given China’s leadership in green finance, the concentration on this region is understandable. However, extending future research to other regions, such as Africa, Latin America, and Eastern Europe, would be valuable. Exploring the evolution and impact of green finance initiatives in these emerging economies could provide a more comprehensive understanding of the global dynamics. Moreover, the role of fintech in scaling green finance and addressing challenges like greenwashing also warrants further investigation.

The discussion highlights green finance’s transformative potential as a catalyst for sustainable economic growth, linking theoretical insights to practical impacts across policy frameworks, corporate strategies, and real-world applications. Emphasizing region-specific and sectoral dynamics, the analysis illustrates how green finance bolsters emissions reduction and economic resilience, shaped by policy and regulatory contexts. Corporate strategies reveal competitive benefits through innovative management and digital finance in fostering green initiatives. Real-world examples, especially in BRICS nations, showcase green finance’s role in supporting eco-friendly recovery and sustainable agriculture. These findings underscore green finance’s adaptability and effectiveness in promoting resilient, sustainable economies.

While this systematic review provides comprehensive insights into green finance’s role in driving economic innovation and growth, several limitations should be acknowledged. The evidence is primarily drawn from published literature in English, potentially introducing a language and publication bias that may overlook valuable insights from non-English sources and gray literature. The focus on Scopus and Web of Science databases, while enhancing data reliability, might have excluded relevant studies from other sources, limiting the global representation of the topic. Furthermore, although the PRISMA framework was adhered to, no automation tools were used in the selection and screening processes, which, despite rigorous independent review, may introduce some level of human error or subjective interpretation. Finally, the dominant emphasis on regions with high research output, particularly China, limits the broader applicability of findings, highlighting a need for further studies encompassing a more diverse set of countries and contexts to fully capture green finance’s global dynamics.

Additionally, further research should explore several key areas to advance the field of green finance. Firstly, there is a need to examine the impact of localized green finance mechanisms in fostering economic resilience within various economic contexts, especially in emerging economies where resource constraints may limit green investment. Investigating sector-specific applications, such as green finance in agriculture or small and medium enterprises (SMEs), can yield insights into targeted financial tools that support sustainable practices at a granular level. Additionally, research could benefit from exploring the integration of digital finance and AI-driven tools within green finance frameworks to improve transparency and efficiency. This approach would allow a deeper understanding of how technology can streamline green finance initiatives, especially in under-researched sectors like green buildings. Finally, assessing the effectiveness of green branding on a nation’s economic strategy and its impact on sustainability efforts offers a promising multidisciplinary avenue. These further research directions will collectively enrich the understanding of green finance as a dynamic tool for sustainable economic transformation.

The key conclusion of this analysis is that green finance has established itself as a powerful catalyst for economic innovation and sustainable growth. This conclusion is supported by recent studies that explore the intricate relationship between green finance, carbon emissions, and green technology innovation (Li and Gong 2023). Bridging financial stability and environmental resilience offers a transformative path for countries addressing economic development and climate change challenges. However, unlocking its full potential will require concerted efforts in regulatory oversight, financial policy refinement, and fostering technological innovation to drive long-term sustainability. A multidisciplinary approach, as seen in the intersection of green nation brands and green brand culture, could further enhance the alignment between green finance and broader environmental and societal goals (Wang et al. 2022b). Notably, environmental branding has gained significant prominence post-2015, reflecting the growing importance of integrating environmental concerns into economic strategies. Moreover, the role of fintech development in fostering green innovation, energy efficiency, and green supply chains is increasingly relevant, presenting new avenues for future research in green finance (Wang et al. 2022b).