An Overview of the Evolution in the Research Landscape of Green Finance

Abstract

Driven by growing demands for environmental protection and sustainable development, green finance has gained increasing attention, evolving from a peripheral topic to a core research area. Research in green finance primarily focuses on financial products, services, and policies, analyzing their impacts on society, markets, and listed companies. Through a systematic literature screening and analysis process, this study reviewed the existing body of literature on green finance, with a particular emphasis on key areas such as green financing, green financial technology, green financial products and derivatives, green building, financial reform and innovation in green finance, and carbon trading markets. Using keywords such as “green finance”, “green insurance”, “green securities”, and “green investment”, we identified 15,487 relevant publications from 2014 to 2023 across multiple databases. We then applied Latent Semantic Indexing (LSI) to cluster these documents, identifying core subfields and conducting a detailed bibliometric analysis. Our results reveal a geographic shift in green finance research prominence from the U.S. to China, with a thematic shift from green building and energy efficiency to green bonds and climate finance. Through our analysis, we provide policy recommendations informed by these findings. This study’s unique contribution lies in its systematic extension of bibliometric analysis into emerging subfields of green finance, such as green financial technology and carbon trading markets, both of which are becoming increasingly critical. Additionally, this study offers valuable insights into the evolving landscape of green finance research, bridging the gap between academic research and industry practice and providing actionable policy recommendations for stakeholders across different sectors.