Green Finance and Inequality

Posted: 24 Mar 2023

See all articles by Ola Mahmoud

Ola Mahmoud

University of St. Gallen; University of California at Berkeley; Swiss Finance Institute

Lea Tschan


Date Written: March 17, 2023


This paper provides empirical evidence for a significant positive association between green finance and top income inequality from a broad panel of countries. This relationship is strongest for countries with low GDP and low levels of financial development. Moreover, we find evidence for a significant positive long term effect on inequality that persists for more than five years. We argue that the association between green finance and inequality is at least partially driven by an innovation mechanism. Using a moderated mediation setup, we show that innovation is mediating the positive relationship between green finance and top income inequality.

Keywords: green finance, inequality, innovation

JEL Classification: G10, D62, D63, O16, O31, O33

Suggested Citation

Mahmoud, Ola and Tschan, Lea, Green Finance and Inequality (March 17, 2023). Available at SSRN:

Ola Mahmoud (Contact Author)

University of St. Gallen ( email )

Institute of Economics
Varnbüelstrasse 19
St Gallen, St. Gallen 9000

University of California at Berkeley ( email )

Consortium for Data Analytics in Risk
Evans Hall
Berkeley, CA 8032
United States

Swiss Finance Institute ( email )

c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4

Lea Tschan


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