Identification of green financing strategies in Iran's banking sector and its political effects on the structural changes of the industry sector

Document Type : Research Paper


1 Department of Management, Aras International Campus, University of Tehran, Tehran, Iran

2 Department of Management, University of Tehran, Tehran, Iran

3 Department of Economics, Kharazmi University, Tehran, Iran


Green financing is a strategy for the financial sector in the direction of sustainable development, which is being considered all over the world today. Green mortgages, green car loans, alternative energy ventures, eco-friendly deposits, and green credit cards are just a handful of innovative green financial products currently being offered in the world. In this regard, the main purpose of this research is to identify green financing strategies in Iran's banking sector and their political effects on the structural changes of the industry sector. In this research, there are two main questions: 1. What are the green financing strategies in Iran's banking sector? 2. What is the policy effect of green financing on the structural changes in the industry sector? In this research, the data needed to test the research hypothesis has been collected using the questionnaire tool as well as the library method. Descriptive statistics and inferential statistics methods have been used to analyze the collected data. In the inferential analysis part of the research, the gray relation analysis method has been used. The results show that the green financing index is most closely related to the investment level of the industry sector; Also, there is the lowest intensity of the relationship between green finance and the index of the added value share of value added in the industry sector. All, the evidence shows that green financing is related to many structural variables of the industry; but the intensity of the relationship will be different depending on the type of variable.


[1] E.F. Brigham and J.F. Houston, Fundamentals of Financial Management, Cengage Learning, 2019. [2] T.F. Cojoianu, G.L. Clark, A.G.F. Hoepner, P. Veneri and D. Wojcik, Entrepreneurs for a low carbon world: How
environmental knowledge and policy shape the creation and financing of green start-ups, Res. Policy 49 (2020), no. 6, 103988.
[3] C. Criscuolo and C. Menon, Environmental policies and risk finance in the green Sector: Cross-country evidence, Energy Policy 83 (2015), 38–56.
[4] P.M. Falcone, Environmental regulation and green investments: The role of green finance, Ijge 14 (2020), no. 2, 159–173.
[5] S. Hafner, A. Jones, A. Anger-Kraavi and J. Pohl, Closing the green finance gap- A systems perspective, Environ Innov. Soc. Transit.34 (2020), 26–60.
[6] J.W. LEE, Green finance and sustainable development goals: The case of China, J. Asian Finance Econ. Bus. 7 (2020), no. 7, 577–586.
[7] Z. Li, T.H. Kuo, W. Siao-Yun and L. The Vinh, Role of green finance, volatility, and risk in promoting the investments in renewable energy resources in the post-COVID-19, Resour. Policy 76 (2022), 102563.
[8] X. Xu and J. Li, Asymmetric impacts of the policy and development of green credit on the debt financing cost and maturity of different types of enterprises in China, J. Clean. Prod. 264 (2020), 121574.
[9] Y. Xu, S. Li, X. Zhou, U. Shahzad and X. Zhao, How environmental regulations affect the development of green finance: Recent evidence from polluting firms in China, Renew. Energy 189 (2022), 917–926.
[10] Y. Yang, X. Su and S. Yao, Nexus between green finance, fintech, and high-quality economic development: Empirical evidence from China, Resour. Policy 74 (2021), 102445.
[11] C. Zhang, X. Cheng and Y. Ma, Research on the impact of green Finance policy on regional green innovation-based on evidence from the pilot zones for green finance reform and innovation, Front. Envir. Sci. 10 (2022).
Volume 14, Issue 8
August 2023
Pages 249-264
  • Receive Date: 24 September 2022
  • Revise Date: 14 November 2022
  • Accept Date: 14 November 2022
  • First Publish Date: 12 December 2022