Green credit policy, credit allocation efficiency and upgrade of energy-intensive enterprises

Huwei Wen, Chien-Chiang Lee () and Fengxiu Zhou

Energy Economics, 2021, vol. 94, issue C

Abstract: Using the quasi-experimental method, this research investigates the impact of green credit policy on the upgrade of energy-intensive enterprises from the perspective of credit allocation efficiency. Through the panel data of listed companies in China, this study finds that the green credit policy under the Green Credit Guidelines in 2012 (GCG2012) has a significantly negative effect on the research and development (R&D) intensity and the total factor productivity (TFP) of treated firms. Empirical evidence also shows that the GCG2012 significantly reduces bank credit but increases trade credit. Consequently, the substitution hypothesis is established. Furthermore, GCG2012 has reduced the allocation efficiency of bank credit within energy-intensive industries. As an improved green credit policy to encourage enterprises to invest in energy efficiency, the Energy Efficiency Credit Guidelines in 2015 (EECG2015) increases both the bank credit and the fixed asset investment, whereas no increase in R&D intensity or TFP is found. These findings are enlightening for designing better green credit policies.

Keywords: Green credit policy; Upgrade of enterprises; Energy-intensive industries; China (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (143)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:94:y:2021:i:c:s0140988321000049

DOI: 10.1016/j.eneco.2021.105099

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