The Interplay between Environmental Accounting and Green Finance: A Pathway to Corporate Sustainability and Carbon Emission Reduction
Main article
Abstract
This study examines the integrated relationship between environmental accounting practices and green finance mechanisms in fostering corporate sustainability and reducing carbon emissions. Based on Chinese provincial panel data from 2000-2022 and firm-level sustainability reports, we employ Bayesian Additive Regression Trees and structural equation modeling to analyze nonlinear relationships and interaction effects. Our findings reveal an inverted U-shaped relationship between green finance development and carbon emission intensity, with environmental accounting metrics significantly moderating this relationship. The results demonstrate that companies implementing comprehensive environmental accounting practices, particularly material flow cost accounting and carbon accounting, achieve more substantial improvements in environmental performance when coupled with green finance access. Furthermore, we identify regional heterogeneity in these effects, with more pronounced benefits in energy-intensive regions and industries. The study provides empirical evidence for policymakers and corporate managers on the synergistic potential of integrating environmental accounting systems with green financial instruments to achieve climate goals and sustainable development.
