The impacts of green credit policy on green innovation of high-polluting enterprises in China

Wei Li, Huihui Cheng, Junhe He, Yufei Song and Hui Bu

Finance Research Letters, 2024, vol. 62, issue PA

Abstract: This paper assesses the effects of the Green Credit Guidelines (GCG) 2012 on the green innovation of high-polluting enterprises (HPEs) in China. We find a significant increase in utility patents following the GCG 2012, indicating a surge in incremental green innovation. However, the policy's impact on invention patents remains marginal, pointing to a dominant trend of compliance-oriented innovation rather than fundamental technological breakthroughs. We find there is long-term effect of GCG 2012 which may be attributable to the enhanced rigor of policy implementation. Additionally, we document that HPEs reduced financial asset investments in anticipation of more stringent credit conditions.

Keywords: Green credit policy; Green innovation; Patents granted; Financial assets allocation (search for similar items in EconPapers)
JEL-codes: G21 G32 O16 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:62:y:2024:i:pa:s1544612324001971

DOI: 10.1016/j.frl.2024.105167

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