Can the green finance policy force the green transformation of high-polluting enterprises? A quasi-natural experiment based on “Green Credit Guidelines”

Yuchen Lu, Yuqiang Gao, Yu Zhang and Junrong Wang

Energy Economics, 2022, vol. 114, issue C

Abstract: Green finance policy (GFP) driving the green transformation of high-polluting enterprises (HPEs) has become a powerful measure for various countries to rectify environmental problems. Using the data of Chinese A-share listed companies from 2007 to 2019, this paper adopts the difference-in-differences (DID) method to empirically test the incentive effect and mechanism of the Green Credit Guidelines (GCGs) on green innovation. The research shows that the GFP accelerates green innovation in HPEs. The mechanism analysis exhibits that the incentive effect of GFP on green innovation of HPEs is mainly achieved by increasing the financing constraints and the debt financing cost of HPEs. The heterogeneity test found that the promoted effect of GFP on green innovation of HPEs is more obvious in company with financial background, the central and western regions, capital city and regions with low levels of green development. Therefore, the government should strive to create a good green financial environment and formulate more appropriate differentiated credit policies; HPEs should actively learn technology and experience from enterprises with successful green transformation. Only with the collective efforts of the government and enterprises can China better achieve the “dual carbon” goal.

Keywords: Green finance policy; Financing constraints; Green transformation of high-polluting enterprises; Difference-in-differences method (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988322004042
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:114:y:2022:i:c:s0140988322004042

DOI: 10.1016/j.eneco.2022.106265

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().